Tuesday, January 21, 2020

Want 25% Increase in Profit? Here’s How!


Want to make more money and improve your bottom line? Don’t just acquire more customers. Woo your existing ones. According to Bain & Company, a 5% increase in customer retention correlates with a 25% increase in profit or more.
How does this work? Just look around!
  • Over there—stacked on that storage piece—how many catalogs have you kept?
  • On your fridge, how many mailers do you have taped to remind you to take your car in for a checkup? The dog to the vet? Your kids to the dentist?
  • How many marketing or customer retention emails have arrived in your inbox just in the last week?
  • While reading this, did you receive a text alert for a flash sale at your favorite retailer?
  • If you’ve “liked” a company’s page on Facebook, have they asked you to participate in a social media contest by sharing a story or uploading a picture to their page?
It’s all about maintaining customer engagement over time.
Realtors are great at this. Once people close on a new home, they often begin receiving postcards from the realtor who sold it to them. Postcards typically arrive with the change of seasons. In the spring, families with large lawns get tips on choosing a landscaper. In the fall, families with pools get tips on closing those pools down. Families up north get tips on winterization.
Why do realtors do this? If the homeowner’s friends and family are looking to make a move, the realtor wants to get the referral. If the homeowner eventually needs to sell the home, the realtor wants to be the first one they call.
Whether you are selling toys, clothing, or sporting goods, the principle is the same. Use a mix of channels to engage people in different ways, continually feed them information on new products and services, tips and tricks, and other helpful information to keep them coming back.
Need help? Give us a call!

Please give us a call at 440-946-0606
Or visit our website here for more information.


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Study: Personalization Translates into Increased ROI


Data-driven, personalized marketing has become nearly ubiquitous in today’s hyper-competitive economy. But is it really necessary? Can’t you just mail more generic offers at a lower cost and get the same results? Not anymore. Why? Because long-term profits have become highly correlated with customer engagement and loyalty, and personalization is key to driving both.
In a recent study, “2019 Trends in Personalization Report” (Evergage/Researchscape), 98% of respondents indicated that they felt personalization helps advance customer relationships, with 70% saying it has a “strong” or “extremely strong” impact. In addition, 59% cite increasing customer loyalty as a top benefit of personalizing their communications and 85% indicate that their customers now expect personalized experiences.
It’s no wonder that brands are increasingly focusing on personalization, whether in print or digital communications. In fact, “2019 Trends in Personalization” found that when it comes to email, digital, and online personalization:
  • 90% of respondents report a measurable lift from their efforts.
  • More than half (58%) see lifts of more than 10%.
  • Fifteen percent report lifts of more than 30%.
While print was not included in the survey, it’s hard to imagine that if marketers are getting these results in other channels, they would not see similar results in print.
Personalization is not just a worthy goal. It has become a critical strategy for engaging and retaining customers and motivating customers and prospects.
Is increasing your investment in personalized communications on your “to do” list for 2020?

Please give us a call at 440-946-0606
Or visit our website here for more information.

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When It Comes to Profits, It’s Time to Sort Your Customers


Let’s face it. When it comes to profitability, some customers are worth more than others. That’s why, before deploying any marketing plan, you need to know who your most profitable customers are.
Understanding Customer Lifetime Value (CLV), or how much a customer is worth over time, is a critical part of the equation. One customer may spend $250 with you initially, but then never order again. Another customer may order only $150 the first time, but then become a loyal (and far more profitable) customer who orders thousands of dollars’ worth of products over time.
This is why in order to understand the true profitability of your customers, you need to look at campaigns from a broader perspective. If you were to look at the ROI of the above campaign in the short term, you would think the first customer netted the highest ROI. But it was the second who was the most profitable.
How do you determine CLV? First, you need to decide which measure (or measures) you are going to use.
  • Do you want to determine CLV based on revenue generated?
  • Do you want to use profitability?
  • Do you want to include hard dollar values only?
  • How about the frequency of purchases? Is having consistent, predictable revenue streams more critical than larger, less consistent ones?
  • How important are other factors, such as social media influence, to your calculations?
You also want to consider your customer acquisition cost (CAC). If you use static direct mail combined with generic email, you may spend less but net fewer customers. Or you can run a short-run, highly targeted campaign that costs more overall, but acquires more customers and has a lower CAC that results in a higher CLV.
Customer Lifetime Value is an important calculation, but its value to your marketing strategy depends on the accuracy of the numbers you put in. Talk to us about creating accurate CLVs for your customers.

Please give us a call at 440-946-0606
Or visit our website here for more information.


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