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According to a recent Forrester Report, consumers spend 34%
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of their media time online. Marketing is shifting from a push to
pull model and consumers are taking more control over what
they view and how they view it. This shift in the marketing
landscape means consumers are less likely to respond to
mass media marketing strategies. To address this challenge,
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companies are turning to relationship marketing in order to
develop more creative, innovative and cost-effective strategies
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for retaining and building loyalty with their customers.
Let’s take a look at how your organization can move beyond
traditional marketing and leverage the loyalty-creating power
of customer relationships.
Today, it’s all about more. More consumer control, more channels, more media
and more money spent online. Because the online channel gives consumers more
options to choose from, organizations face a big challenge: when customers can
visit any site at any time, what will make them loyal and keep them coming back?
According to Frederick Reichheld of Bain & Company:
• Businesses in many industries may lose up to 50% of their customers over
a five year period.
• Studies have shown it’s 6 to 7 times more expensive to acquire a new customer
than it is to retain a current customer.
• As little as a 5% increase in customer retention can increase profits by 25 to 95%.
Yet many businesses are still focused only on customer acquisition and see
customers from the fragmented view of individual transactions.
a new Marketing MOdel: the learning relatiOnshiP
With competitors just a mouse click away, marketers need to create strong
relationships with their customers in order to build loyalty and keep them coming
back. With better customer insight, both online and offline, marketers can develop
relationship marketing programs that are relevant to their visitors’ needs.
The goal of relationship marketing is to increase customer loyalty. At the core
of this strategy is the concept of establishing a “learning” relationship with each
customer. Every interaction you have with a customer is an opportunity to learn
about their individual motivations. The unique measurability of the web takes
this relationship to a new level because it provides greater insight into customer
preferences and behavior.
Marketing experts Peppers & Rodgers have demonstrated that, “Even if a
competitor offers the same type of customization and interaction, your customer
won’t be able to enjoy the same level of convenience without taking the time to
teach the competitor the lessons your company has already learned.” That’s a
powerful motivator for them to stay loyal.
Gaining deep insight into visitor behavior at every stage of the visitor lifecycle is
essential to successful relationship marketing. Businesses must move beyond
the fragmented view of individual transactions and view customer behavior over
the lifetime of the relationship. Customer behavior should be represented by a
comprehensive cross-channel analysis of all customer data, allowing deep insights
into customer preferences and motivations.
Moving beyond transactions lets you monitor individual behavior accurately across
any time period and learn about customer preferences and motivations. It allows
you to segment your customers, not just activities and transactions. Instead of
reacting to transactional data (which is a mirror to the past) you can proactively
meet the needs of your customers through relevant online and offline marketing
programs and a personalized online experience.
Economies of scale—which provided benefits in the past to large companies
running mass media marketing campaigns—no longer apply in the world of
relationship marketing. Companies that have the most insight into customer
behavior and motivation will have the greatest competitive advantage. They’ll
also outperform companies continuing to operate on a transactional basis with
hOw Can weBtrends helP yOu start Building relatiOnshiPs?
While implementing relationship marketing requires a strategic change, it does
not necessarily require a major organizational overhaul. Fortunately, web analytics
offers a wealth of knowledge about customer behavior and motivation. WebTrends
Marketing Lab, which includes WebTrends Marketing Warehouse 2.0, helps you
gather information about customer behavior and evaluate your ability to establish
and maintain relationships with your customers. Take a look at the process,
step by step.
Step 1: Understanding the Visitors Behind the Visits
Every interaction is an opportunity to understand more about your customers.
Because customer data is captured through a variety of channels, marketers often
have a fragmented view of their visitors. It’s essential to develop a comprehensive
cross-channel view of customer behavior to have a complete understanding of
their interests andpreferences.
You must recognize individual customers at every contact point to learn about
individual customer needs and motivations. WebTrends Marketing Warehouse
makes it possible to tie what you know about your visitor’s offline to the behavior
they exhibit online, allowing you to tie demographic, psychographic, and
geographic visitor information to the powerful attributes from your web channel.
Here are a few examples of the kinds of online and offline visitor insight you can capture in the WebTrends
Step 2: Segmenting Customers by Behavior
The next step is segmenting by customer behavior. WebTrends Marketing
Warehouse gives business users the flexibility to explore and segment visitor data
on the fly, gaining insights with every customer interaction.
• Group your customers by their needs and their value to
• Discover how visitors’ frequency and recency impact the sales cycle
• Identify visitors that are most likely to purchase, register or apply
• Create and customize your segments in real time by assigning levels
of visitor interest, or visitor attractiveness
• Compare segments and look for ways to increase the value
of underperforming segments or look to expand your most
Segmenting customers is your chance to find opportunities for creating an ongoing
dialogue with your customers.
Create and manage customer segments on the fly and identify the visitors that share common preferences.
Step 3: Creating Specific Content to meet Your Customers Needs
WebTrends Marketing Warehouse gives business users the ability to generate real-
time visitor lists for targeted marketing, ensuring you reach the right customers at
the right time.
• Send personalized email to customers who have opted into
• Tailor the messaging around recently viewed products or around events
in the customer lifecycle
• Limit your marketing dollars to customers who are more likely to respond
positively to your campaigns
Use the data you’ve gathered to customize your marketing message to individual
customers, and use insight gained to take action to improve the effectiveness and
cost-efficiency of your marketing efforts.
Generate real-time visitor lists to drive targeted and relevant communications with your customers.
Step 4: Measuring your Success
The final step in the process is to measure the results of your relationship
marketing campaigns and continually optimize the results of your programs.
WebTrends Marketing Lab makes it possible to get immediate feedback from
your customers. You can easily identify customer detours and abandonment
points and react quickly to re-engage them.
WebTrends Analytics 8 lets you see how your customers are accessing your
website and measure the ongoing performance of your relationship marketing
programs. By measuring and learning from your customers at every interaction,
you can continually provide a better experience every time the customer returns,
which creates a lasting competitive advantage.
Use WebTrends Campaign Reporting to measure and compare the effectiveness of your relationship
the results Of relatiOnshiP Marketing
drive CustOMer resPOnse
Use the insight you gain to develop online and offline marketing programs based
on the preferences and motivations of your customers. WebTrends Marketing
Warehouse helps you target customer behaviors across multiple channels of visitor
information. Then you can measure the results in WebTrends Analytics 8 to refine
your approach to the market. When you create learning relationships with your
customers, you can meet their needs more effectively—and more efficiently.
• Identify buyers, applicants or registrants that are on the
fence. Immediately generate a product-specific offer based to
compel them to convert
• Increase your site stickiness and downloads. Personalize your
content and offers based on online behavior and offline customer data.