In marketing, it is easier to retain an existing customer than acquire a new one. After all, a great first experience is very good reason to buy again. True to its name, Lifetime Value (LTV) stretches an entire lifetime, as long as customers value the brand. Extraordinary service is essential, and CRM data helps with that – showing exactly what “the usual” is for each customer, and recommending something to go with it so they keep coming back for more.
Find top customers
The most passionate, engaged customers tend to command the majority of sales. The Pareto principle ballparks this as the top 20% driving 80% of sales. Proving this is a matter of delving into your data.
These resources show how:
- MVCs: five metrics for identifying your most valuable customers
- Profit Driven Marketer: Who is Your Business’s MVC (Most Valuable Customer)?
Widen the net
Knowing your top customers makes it easier to find people like them. Platforms such as Facebook allow you to build lookalike audiences, that is, people with similar profiles to your top customers.
You can also draw insights from these audiences to target others by interest or demographic, and create campaigns that speak personally to them.
Stay in touch
Some businesses, like cafes, have customers coming in daily for a cuppa. Others have a longer purchase cycle, such as airlines where most people only travel for a few months in a year. For the latter, it makes sense to regularly engage them and keep your brand top-of-mind. Find an interval that works, be it 30, 60 or 90 days, and give these customers special offers such as discount codes or value-added services.
By giving them exclusive offers, they may be convinced to purchase more frequently than they normally would, and become more loyal to your brand at the same time.
Mix and match
Track your purchases using Facebook and other analytics tools to find out what each customer is buying. This can be used to identify patterns in buying behaviour.
For instance, with an F&B brand, if many customers are buying nacho cheese to go with their biscuits, try advertising other dips, or even create an offer ad pairing the two as a special package.
Personalise your engagement with customer data
Knowing when customers buy and repurchase is great for establishing when to talk to them as a baseline. In between, there may also be other opportunities to engage them. Use customer data to identify the right moment for personalised ads.
For instance, eCommerce services in Southeast Asia are expanding horizontally. Customers who use ride-sharing or grocery delivery services may also appreciate the same timeliness for food delivery. Reaching out to loyal customers can be a great way to rapidly grow a new arm of the business.
Take the offline online
If you offer a loyalty card, take it a step further! Facebook and other platforms enable you to link membership information to online profiles.
Connecting online and offline data not only enables you to understand your customers better, this data can be used to boost LTV by presenting them with relevant offers.
LTV means thinking beyond the first transaction. By knowing customers and approaching them with well-timed, personalised engagements, you will be able to grow the relationship and maximise efficiency on ad spend.