Category: Marketing

Acquiring a new customer is 5 to 7 times more expensive than keeping one, we all know this, but why are companies still unable to retain their customers?

The CLV or Customer Lifetime Value, is the value that your customers have for your company, and it is one of the most important calculations for a company.

In this article we will unravel the importance of using a CDP today, in order to optimize your company’s CLV, thus boosting your revenues, and achieving longer lasting relationships with your customers.

What is CLV?

The Customer Lifetime Value is a formula that determines the cost/benefit that a customer can bring to your company. With it, you can determine the appropriate expenditure to invest in marketing/advertising to reach or attract this customer. Without this metric it is impossible to draw logical marketing strategies since you would be constantly carrying out undervalued campaigns or, even worse, overvalued, that is, paying more for obtaining new customers than what they will bring you in the long term.

In order to obtain a concrete but dynamic data from your CLV, it is necessary to obtain a large amount of data and a proper treatment of it. Due to the end of Third-Party Cookies, this data must be obtained directly from your customers: the First-Party Data. Once you start collecting data from your customers, it will be necessary to store, organize and analyze it in an efficient way in order to obtain an accurate CLV. The right tool for this is an Intelligent CDP, which will allow you to do all this and more.

Strategies to improve your CLV with a CDP

How can a CDP help me improve my Customer Lifetime Value? Below we will explain some of the key strategies for a marketing team with an Intelligent CDP at their disposal. With these strategies your company will be able to make a difference with your competitors in terms of CLV.

1. Strengthen your relationship with your customers

Traditional marketing is no longer useful, the market demands strategies focused and oriented to the customer “Customer-Centric“. To really put the customer at the center, and thus strengthen your brand’s relationship with them, it is essential to know them.

Having a real-time picture of your customers, with all the data you can get unified, allows you to know them like never before. In addition to, as it is in real time you will be able to observe the effect of each of your campaigns on each customer, to know which campaigns attract them more or distance them from your brand.

2. Hypersegment your customers

With this 360-degree view of the consumer, you will be able to perform much more concrete and dynamic segmentation than you had ever imagined.

For example: you can generate market segments based on the moment in which customers are in relation to your company, added to other variables such as age, their product preferences, or their estimated average income. This way you will group your customers according to their interest in receiving this month’s newsletter, or in the case of doing more than one newsletter, you will know which one to send to each group of customers.

3. Personalize their experience

Having this 360 picture we will be able to personalize the experiences, something fundamental nowadays. There are too many companies in the market offering a similar product to yours, and therefore, the customer needs you to provide a different experience with your company. Thus, personalization becomes crucial for that customer to decide to buy your product/service instead of that of your competitor.

For example: if two customers do not want the same thing from your company, one buying a product online and the other in the physical store, do not send discounts for your e-commerce to the one who wants to go to the store. Simply show him/her the new products and offer him/her a discount in the physical store through email marketing, so that he/she gets what he/she wants from your brand.

4. Optimize your marketing strategies

Marketing strategies are determined by the CLV, and therefore a detailed and accurate analysis of the CLV will allow your company to optimize these strategies. This way your marketing strategies will have an efficient budget that will boost your ROI since the tendency will always be to receive revenues above the costs of the campaign.

In addition, a CDP will help you to optimize these campaigns, avoiding unnecessary expenses or even losing customers due to invasive or excessive advertising. With campaigns measured to the millimeter as a CDP allows you to know the effect of the campaign on each customer, thus being able to predict the result with the help of AI/ML, and knowing the expenditure that you should or can make.

WHY FLYDE?

Do you want your company to move on to the next level? A CDP is the key tool that will allow you to maximise the potential of your data and grow your business. Working like the big multinationals in the market, which already have this type of software, and having control over all your data is now very simple.

Moreover, if you do not have IT or Data Scientist teams, this tool will allow you to outsource this function. And if you have them but want to reduce their workload and give more autonomy to your marketing and business teams when it comes to working with data, implementing an easy-to-use CDP would be the best option for your company. It will allow any single member of your company to use it, as this softwares are prepared for them.

Obtaining good results from marketing campaigns is becoming increasingly difficult due to the hyper-saturation of advertising and messages that customers receive. Therefore, your company must be able to differenciate and offer unique experiences, both to your current and your potential customers.

FLYDE offers you the possibility of improving your campaigns in a very simple way with its hyper-segmentation and personalisation tools, with which you can give each customer what they want and when they want.

Unify all your data to get a 360° view of your customers

Obtaining a 360-degree view of your customer is vital nowadays in order to be able to draw up an effective strategy. To know your customer completely, it is essential to be able to unify all the data to which you have access and join it to the socio-demographic data of the market in question.

In this way, you will obtain an extremely detailed profile of each one of your customers on the same platform.

Hyper-segmentation is the key

Once you have a detailed picture of your customers, you can start to hyper-segment according to the characteristics you want. Thus, you can segment by the type of contact your customers have with your brand, by their preferences when it comes to buying your products or by the vital characteristics of those customers (income level, number of people they live with, etc.), among many other options.

This form of segmentation will allow your company to understand hyper-specific details, what each customer wants and how each marketing campaign you carry out affects them.

Define specific audiences

Once you have done this hyper segmentation, you can generate audiences of those characteristics or segmentations that you find most interesting or combine several. With them, you will be able to create highly targeted email marketing or telemarketing campaigns, as well as refining your social media segmentation or your offers through your sales channels.

All this process, moreover, will be accompanied by the constant support of Artificial Intelligence, which will offer you details that the human eye cannot perceive. Thanks to its data processing capabilities, it will help you, among other things, to predict behaviour based on the habits of your customers so that you can act in advance of possible changes in the market.

Create campaigns based on the preferences and lifestyles of your customers.

These campaigns must be personalised because that is what customers demand in 2022. To achieve a real personalisation of your campaigns you must cover three fundamental aspects, which you must unify in a platform such as FLYDE:

1. 360 Knowledge of your customers (What they want, how often they want it and how they want it).
2. Knowledge on how your previous campaigns have affected customers and potential customers.
3. Generate different types of content, respecting your brand, but targeting each type of customer.

Max and John do not want the same thing and, therefore, it does not make sense to offer them the same product. If John is a regular customer (he buys every month in your physical shop) and, having the data from all your channels unified, you realise that before buying in shop he visits your website to see what’s new, the product you offer him on the Home page of your website must match his likes and shopping habits.

How do I make my campaigns stand out to my customers and not bore them?

Email marketing continues to be one of the most widely used actions today. As much as an 87% of marketing teams use this type of strategy to promote products and content. These campaigns can be based on sending newsletters or reminders to recover abandoned carts, as well as many other examples depending on the sector or the company’s preferences.

Even so, the average email open rate is quite low, at around 20.80%. In other words, 79 out of 100 emails are never read. Why does this happen? The problem that many companies face is the lack of adequate tools that allow them to know the customer fully. Therefore, as we have seen throughout this post, personalising and segmenting properly becomes a very complicated task that is also essential if we are looking to stand out from our competitors and reach our customers by offering them quality content that interests them.

However, with FLYDE this process becomes quick and easy. In just a few clicks, you can segment your customers on our platform and get a very detailed view of each one of them to find out what type of content they prefer and, above all, how often they want it.

With FLYDE, by applying the Dynamic Scoring, you will be able (taking into account multiple factors) to segment your customers by the likelihood of their interest on your newsletter. This way, if a customer does not want to receive your newsletter, he will not receive it, so he will not get tired of your brand, and you will not lose him definitively. On the other hand, if a customer is loyal and passionate about your brand, you can send them a greater number of emails, thus increasing their chances of buying and their engagement with your brand.

WHY FLYDE?

Do you want your company to move on to the next level? A CDP is the key tool that will allow you to maximise the potential of your data and grow your business. Working like the big multinationals in the market, which already have this type of software, and having control over all your data is now very simple.

Moreover, if you do not have IT or Data Scientist teams, this tool will allow you to outsource this function. And if you have them but want to reduce their workload and give more autonomy to your marketing and business teams when it comes to working with data, implementing an easy-to-use CDP would be the best option for your company. It will allow any single member of your company to use it, as this softwares are prepared for them.