No matter the industry, as a smart marketer you want to drive sales, increase revenue and improve customer engagement.
You also know for your customer-centric marketing to succeed, delivering the right type of promotion, at the right time, to the right customer is imperative.
So why are you still blindly discounting all your products and sending offers to all your customers?
Try targeting customers with tailored promotion campaigns at each stage of the customer lifecycle.
Of course lifecycle phases depend on your business model, but today we will discuss:
The key to lifecycle marketing is to deliver value to your customers at every phase of the customer journey. The promotion ideas below will help you optimize these communications and see results with customer retention.
Research shows that increasing customer retention rates by 5% increases profits by 25% to 95% (Bain & Company , the inventor of the net promoter score).
Here are promotion campaign ideas designed specifically for each stage of the customer lifecycle.
1. The Prospect or New Customer
Who they are: Maybe they have browsed your site but never made a purchase, signed up for a newsletter or set up a profile.
What to do: Offer a “dollar off purchase” discount on their first purchase so they can benefit from savings right away and step into your conversion funnel on Day 1. Set a minimum purchase value to increase ROI.
Why: Over 70% of US internet users said they preferred to receive discounts with a dollar amount off the purchase (eMarketer, 2016).
Tactics: Deliver a valuable discount that customers will remember. Once they make a first purchase, they are much more likely to convert again and make a repeat purchase. By consistently delivering an exceptional brand experience, you can bring these customer into the active or loyal phase.
2. The Active or Repeat Customer
Who they are: These customers know who you are, might already like your business and/or they have made a purchase (one-time or repeat).
What to do: Offer customers who make regular high-value purchases a “Thank You” 25% off their next order and free shipping. Include a time-limit to add a sense of urgency, keep them engaged and aware of your products and services.
Why: The probability of selling to an existing customer is 60 – 70%, while the probability of selling to a new prospect is 5-20% (Invesp).
Tactics: Find the right cadence for your promotions - at this stage you should send regular communications to keep customers active, but you don’t want to annoy them or have a huge loss of profit. Use your CRM data to create tailored discounts based on previous purchases, suggest related products and find the optimal sending time/frequency.
3. Lapsed or at Risk Customers
Who they are: They are in the danger zone. The definition depends on your business, but typically these customers have not made a purchase for X amount of time (or ever).
What to do: Give these customers a real reason to come back to you with a well-crafted re-engagement email offering a free subscription or 15€ coupon on their next purchase (something they can't turn down).
Why: Once a customer leaves, 4 in 5 say they will never come back, and if they do, 59% say they will be less loyal (SDL The Global CX Wakeup Call Report).
Tactics: Don't give up on customers at this stage, after investing acquisition and engagement it is still worth communicating with them. Ask why they are not happy or where they have been to show a more personal side, just remember to offer a valuable and relevant reward at the same time.
4. The Loyal Customer
Who they are: They love your brand, recommend your services to friends and/or choose your products over the competition. Typically high-spend or super active customers that make regular purchases.
What to do: Invite these customers to join your VIP loyalty program that offers exclusive rewards, discounts on new products, and/or access to private events.
Why: Highly-engaged customers buy 90% more often and spend 60% more per transaction, according to the Rosetta Consulting study.
Tactics: Determine the best loyalty program structure for your business, then deliver compelling and personalized rewards to these special customers. Not only are they your most effective form of advertising, they are also the more profitable.
These are just a few ideas to get your started. If you are serious about lifecycle marketing and increasing your customer engagement, you should be leveraging highly targeted and well-timed promotions at every stage of the customer lifecycle.
With the customer data and analytics available to marketers these days, it’s high time you optimize your promotion strategy with these lifecycle marketing tactics.
Before launching your promotions, be sure that you are tracking all the necessary data points to target users at the right lifecycle stage and achieve your campaign goals. Your promotion solution should be powerful enough to execute these complex workflows.
What is your experience with customer lifecycle marketing? Have questions about promotion marketing? We’d love to hear from you! Leave a comment or get in touch.
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