Join us for a special masterclass on how to boost customer loyalty in your email campaigns. We'll be joined by email marketing legend Kath Pay, Founder and CEO of Holistic Email Marketing. Kath lives and breathes email marketing and is recognized as an international email marketing thought leader. This is one session not to miss!
10. Not all customers are equal
Rank these profiles for Value of the subscriber
• Entered competition to win a holiday on-line 3 years ago – not clicked since
• One-time customer, last bought 2 years ago
• Active customer, buys every 4 months
• Active customer, buys once a year but top 10% for order value
• Active customer who blogs, tweets and posts on Facebook
11. Rank these profiles for Value of the subscriber
Active customer, buys
4 months
One-time customer, last
bought 2 years ago
Entered competition to win a holiday
on-line 3 years ago – not clicked since
Active customer, buys once a year
but top 10% for order value
Active customer who blogs, tweets
and posts on Facebook
Not all customers are equal
12. “Lifetime” alters value
• How long to customers stay active for?
• What revenue will they generate per year?
• Work this out for the whole database
• Then for customer segments
• That gives a lifetime value (LTV)
• What about different acquisition source?
14. “All of the above is focusing on short term success.
Even measuring ’Visitor Conversion Rates’ is akin
to declaring success after a one night stand.”
“Visit based conversion rates promote
bad marketing behaviour”
www.kaushik.net
15. How about adding these?
1st month
sales
6 months
sales
3 years
sales
16. Best customers Average customers
Purchases per year 4 2
Average Order Value £70 £50
Annual Revenue £280 £100
Gross Profit Margin 10% 10%
Gross Profit £28 £10
Acquisition Cost £8 £4
Net Profit £20 £6
A Hypothetical Example
17. A Hypothetical Example part 2
Best customers Average customers
Life Expectancy 3 years 2 years
Revenue Year 1 £280 £100
Revenue Year 2 £220 £60
Revenue Year 3 £180 £0
Lifetime Revenue £680 £160
Gross Profit Margin 10% 10%
Lifetime Gross Profit £68 £16
Acquisition Costs £8 £4
Lifetime Net Profit £60 £12
18. Here’s another “relative LTV” example
Best customers Average customers
Acquisition Cost £30 £12
Average Order Value £95 £70
Orders per year 5 2
Retention 3 2
Net Profit 10% 10%
19. Best customers Average customers
Lifetime Gross Revenue £1,425 £280
Lifetime New Profit £112.50 £16
That’s quite a difference...
20. “Lifetime” alters value
• Now use this information to communicate to them
appropriately
• Use the LTV to calculate the value of an email
address
• Now you know the importance of keeping them on
the list
• Now you know how much you can spend to acquire
new subscribers
21. Creating lifetime value through
brand loyalty and big ideas
• Brands need to discover, nurture and empower brand advocates to tell their story
• eCRM creates value from every touchpoint
• The creative idea is paramount in maximising effectiveness across media channels
• Creating experiences amplifies the story
• Social media & email gives customers them their desired control
• Measure the long term value not just short term KPI’s – your job is lifetime value
22. Marketing in the age of the
savvy customer
• Customers are demanding personalisation and much
more
• They’re intolerant of mass marketing
• They don’t like to be ‘sold to’
• They’re demanding an ‘experience’ from you
• They want what’s easy for them
23. The unglamorous side of marketing –
Retention
• Marketers need to get retention right, for a variety of reasons.
• It’s where your current revenue is
• It’s where the lowest hanging fruit for additional revenue is
• It’s where your biggest advocates lie
• It’s where your data sits
• It’s the biggest source of prospective customers for your competitors
24. Learning relationship
• Your eCRM programme should be constantly
evolving and being enhanced
• The more you can tailor your service to the
customer’s requirements, the better
• Customers have a certain amount of inertia –
leverage it
• Even if competitors have same product and service,
customer is hesitant to have to re-teach them
27. Helpful Marketing is a "win-win" proposition
because it benefits both customers and your brand.
When you help your customers achieve their
objectives, they will help you achieve yours in turn.
29. “Putting your prospects' needs
ahead of your own desire to open
an opportunity or close business,
will build the relationships your
company needs to ultimately
weather this storm.”
Courtney Beasley
VP of Marketing, Walker Sands
“Our research shows that
helpful, educational and
empathetic tones are what
are currently resonating with
most companies…”
30. Source: Dynata Global Consumer Trends: Covid-19 Series
of British consumers think that brands
are taking advantage of the pandemic
in order to sell more products
31. • Conversion rate has fallen to second place (53%)
• Customer acquisition cost to third (51%)
• New traffic acquisition to fourth place (50%)
• Average order value comes in fifth (34%)
Lifetime Value is now the
top eCommerce metric
CUSTOMERS FOR LIFE
The Annual eCommerce Leaders Priorities Survey Report
33. Brands take a stand
to show empathy
They can show how they are helping to relieve
suffering in their communities in difficult times or,
as the Gwyneth Paltrow brand Goop does here,
to state a company position and advocate or
share resources as a call for community action.
34. "Marketers, including my own team, are finding
success shifting the messaging from overly
promotional emails to educational and 'content we
think would be relevant for people.
It's kind of this 1-2 punch where people have more
time in their inbox and what they're getting is more
helpful to them, more educational for them and more
relevant than in previous times”
Jon Dick, HubSpot VP of Marketing
37. Consumers who have switched to new
brands or retailers largely intend to stick
with them, with approximately two-thirds
of consumers who have switched to a store
brand indicating an intent to continue
Source: McKinsey - US consumer sentiment during the coronavirus crisis
39. Although this new appreciation for
Helpful Marketing from the
disasters of 2020, is something we
need to continue.
Trying to see and understand our
customers as people first and
buyers second can help us make
better choices in how we address
them even after times improve.
40. Lifecycle Marketing emails innately call
upon Helpful Marketing as their foundation,
and are a great place to start.
43. I
IDENTIFY
Identify your customers as best
you can, through their behaviours,
or through a self-identify process
if applicable. Look beyond
campaign metrics and use
subscriber metrics in preference.
D
DIFFERENTIATE
Differentiate your customers.
Understand their needs are
different to yours and that they
are individuals. Differentiate
more frequent, higher CLV and
more profitable customers in
which to focus on.
I
INTERACT
Interact more effectively with
your customers. Help them to
achieve their objectives. Be
customer-centric in all
communications. Surprise and
Delight them. Show them that
you know them.
C
CUSTOMISE
Customise the content that your
customers receive. Go beyond
static segmentation and either
deliver 1:1 personalisation or real-
time segmentation. Use layered
data to achieve the best result.
IDIC Methodology
IDIC Methodology by Peppers and Rogers, 1995 (Amended for email marketing by Kath Pay).
The methodology behind 1:1 marketing
44. A D K A R
AWARENESS DESIRE KNOWLEDGE ABILITY REINFORCEMENT
PRE-CONTEMPLATION CONTEMPLATION PREPARATION ACTION MAINTENANCE
It’s important to realize that
by implementing change,
you require employees to
step outside of their
comfort zone. They aren’t
going to do so willingly.
Understanding that there’s a
need for change and
wanting change to happen
are two different things.
When people honestly want
to see positive change,
they’ll go.
There’s no point in trying to
implement change unless
the people whose jobs are
changing know how to get
things done.
Knowing how to do
something doesn’t
necessarily mean that you
can do it in practice. Here’s
a simple example
During this stage, you should
also be on the lookout for
areas where the new
process isn’t serving you or
is demotivating your staff.
ENABLEMENT ZONE ENGAGEMENT ZONE
50. Best practice tip
Boost the effectiveness of your product recommendations by
including icons showing how often the item was carted or
purchased recently. Star ratings are another good addition, as
they serve to build trust and encourage click-throughs.
52. Best practice tip
To keep content fresh and the manual effort to a minimum,
incorporate real-time social feeds to automatically pull the
latest posts into web pages and emails.
54. Best practice tip
It is crucial to pull ratings & reviews in real-time. That way,
you ensure that only the most recent reviews are shown.
With 40% of consumers only considering reviews written in
the past two weeks, it pays to use real-time technology.
58. Best practice tip
Test, optimize and test again. Introducing a triggered email
program is just the start. By testing campaigns regularly, you
can optimize emails to increase revenue and adapt to
customers’ behavior over time.
62. Best practice tip
Even if you don’t yet know the customer’s preferences, you can
personalize banners based on the individual’s context. For
instance, their location, local weather, time of day or price affinity.