From engagement to sale, the story everyone wants to tell
Filed under: Customer Engagement, Customer Relationship Management, Marketing Strategy, Uncategorized
My starting point for this post was the desire to paint a picture of the ideal online customer engagement cycle – a sound strategy, intelligently and tactically implemented… Bear with me, sounds like the start of a sales pitch I know, and it kind of is, but it’s also hopefully a useful exercise (and of course you’ll have your own thoughts on the matter, and I’m more than happy to hear them if you disagree with mine!).
What we probably can all agree on, though, is that we’d love to track a customer’s interaction with our brand right from the moment we appear on their radar up to, hopefully, a sale. This might start off with an email or a Google search, go via a bespoke landing page to a contact form; or to a specific product, the shopping basket, and a sale. Or, as is unfortunately also often the case, it might be that you aren’t optimized for the right search terms and the prospect passes by, or a click leads to a generic homepage and a bounce, or a two-page foray into your site ends in them leaving in frustration because they can’t find what they’re after.
Of course, there are very valid reasons, usually budget related, why we have to make compromises, maybe focusing on website development in the first instance, or rolling out some lead generation campaigning without investing in a considered sales funnel to direct the recipient once they arrive on your landing page. We’ve also found ourselves recently in pitch situations against other agencies who specialize in one particular area of online marketing, and the same problem of siloed tactical thinking becomes apparent here, for different reasons. SEO specialists would sacrifice usability and creativity on the altar of ultimate rankings, email specialists focus only on click through- and open rates, and ecommerce houses get bogged down in the technology and not the output.
A website won’t pull like it could if it isn’t supported by the right search engine management, an email campaign could fall flat if the web page it clicks through to doesn’t deliver, and absolutely none of it will work if you aren’t talking to the right people in the first place. A typical strategy could be carried through via all of these elements, and they absolutely have to complement each other for it to perform, and to smash your targets for return on investment.
There’s no denying that there’s real power in having every tactical aspect of your online marketing strategy pulling together to draw people in as prospects and spit them out again as satisfied customers. That’s the beauty of online, particularly when accountability is everything, and that’s why we always propose solutions that address our clients’ business needs rather than having to push a solution because it happens to be what we sell.
The Importance of Being Earnest (with Data)
- ‘Rumpole of the Bailey’ DVD box set
- ‘The Beatles’ Rock Band PS3
- ‘Zulu’ on Blu-ray
- Freakonomics: A Rogue Economist Explores the Hidden Side of Everything
- Tomy Octopals Bath Toy
What is this? I’ll tell you, it’s a list of the last five things I bought from Amazon!
- Sirloin steak
- Mixed salad
- Kellogg’s Bran flakes
- The Times
- Nurofen
What is it? The contents of my shopping basket and I’m on my way to the checkout. It’s a simple process, I just hand over my Amex card, my reward card and the job is done. And just before I came in, I used the same cards to pay for my petrol.
So where’s the rub? Well, if we fast forward a month or so, I will get ‘recommendations’ from Amazon – based, not only on what I’ve previously bought, not only what I’ve ‘viewed’ but also based on what other people who bought what I bought, have then gone on to buy!! Clever isn’t it? And then the lovely supermarket sends me some money-off vouchers for – wait for it – Fillet steak, own label Bran Flakes and Australian red wine (well something must have caused the headaches!).
In the data world, there is no emotion, no judgements, simply a set of binary transactions that it needs humans to write business rules and interpretations around. Of course it’s a bit more than just knowing I’m a closet Barrister, how I probably vote or what my likely household income is. In both cases the Retailer has built up a profile of me through the choices I make (and don’t make). My newspaper may hint at who I’m likely to vote for in an election and what kind of social demographic I fall into. My nightly purchases may indicate I’m single and the lack of nappies and baby food means it’s a safe bet I’ve no children under four. But hold on a minute – you bought the ‘Tomy Octopals Bath Toy’?? True – but it was for my nephew (age two) and simply a ‘rogue or unusual’ transaction as far as data trending is concerned.
Great lessons in how to use customer data, gathered through transactions, and then used to generate relevant, compelling offers. It’s an example of data mining and it’s used by more and more companies across the world. I’ll bet your supermarket/garage/High Street retailer does it, and it’s something you’ve probably bought into. But how do I, as a small B2B organisation, apply these strategies to my business?
In marketing, data mining’s used for quite a few purposes. Amongst other things, it can help companies identify their best prospects and segment their markets to personalise communications between themselves and the prospect. It can produce timely, relevant campaigns – reminding you that we’ve got a new version of the product you bought/lease finance you needed/coffee beans you use. It can also increase their cross-selling opportunities among existing customers, and help retain them. And it really is as easy as that – you hold all the data within your organisation – in spreadsheets, in Accounting systems, in CRM platforms, in website databases. So you know what customers have previously bought, what prospects and customers have viewed on your website, you know what they’ve clicked in your emarketing campaigns. You just need to access that information, pull it together, then use the information to create dynamic, relevant communication strategies for all your customers, both existing and potential. Simple in reality and in practice – it just needs an organisation to fully appreciate the value that can be generated by using data to properly profile and communicate with audiences.
What’s the easiest way to keep your revenue moving forward?
Since the beginning of the year, I’ve been involved in a whole lot more discussions with Clients ( and prospective Clients ) about revenue or business generation. My first question is always ‘ Are you maximising your relationships with your existing Customers?’ It seems an obvious point but so many organisations devote huge resources to attracting new customers without first identifying what they can do to retain and excite existing ones.
Its a well quoted fact – its 5 times easier to keep a customer than to attract a new one’. A recent peice of research by Bain and Co. gave a good insight into the impact of Customer retention. A 5% increase in retained customers leads to 75% increase in net customer value ( i.e. once you have stripped out the implied cost of winning a new customer). Secondly, organisations that implement successful customer retention programmes grow at 6 times the average rate.
A key part of servicing exisitng Clients is to understand them. We start off with a huge amount of actual knowledge – who they are, who the key decision makers are, what they’ve previously bought from us ( and when), what we’ve quoted for, who their other suppliers are etc. etc. The biggest challenge is accessing this information and turning it into usable data for communications. This information typically lies in : a finance system ( like Sage, Pegasus, SAP or Oracle ), a contact system ( like ACT, Maximiser, Goldmine, Outlook or even spreadsheets ) and most risky of all – in the heads of our Commercial staff. Just recently, I’ve noticed ( and we have won) a number of deals to bring this knowledge together and make it usable for the Organisation through the implementation of formal Customer Relationship Management ( CRM) programmes. This process gives one view of the Customer, enabling all and any Customer facing staff to see a full picture of a Customer – who they are, what they’ve bought, have they experienced problems before etc. etc.
Providing access to this level of information - both transactional and personal – allows us to engage with them on a ’1-2-1′ level with personalised e-campaigns, personalised web content and genuinely as a person whom we seek to understand.
As the economic situation tightens, I’m backing Companies which spend time understanding their customers and then communicate with them personally to ‘weather the storm’ and keep driving their revenues forwards.