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Lifetime Customer Value

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This presentation was given at the 2013 edition of Sitecore’s Digital Trendspot event at the Emirates Stadium. The deck asks ‘Who exactly are a brand’s ‘lifetime customers’ and what do we do with them?’. In answering this question, the power of ‘Known Peer Influence’ is examined, along with a number of tactics and strategies for finding the people that are truly evangelistic about your brand, and growing their loyalty and influence.

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Lifetime Customer Value

  1. 1. What is a lifetimecustomer?
  2. 2. What is a lifetime customer?
  3. 3. Q: Someone who buys our product again and again?A: Maybe...Q: A customer whose needs change over a period of years?A: Maybe...Q: Someone we should sell to for the whole of their lifetime?A: Maybe...
  4. 4. What if the most important „lifetimecustomers‟ are none of these things...
  5. 5. “Not everything that countscan be counted. And noteverything that can be countedcounts.” – Albert Einstein
  6. 6. What about the stuff that‟s more difficult to measure?
  7. 7. What if your „lifetime customer‟ isn‟t even a customer?
  8. 8. Or, what if your best „lifetimecustomers‟ have only bought from you once?
  9. 9. What if they purchased years ago, but never again?
  10. 10. What about the real evangelists?What about the people who love your product andbrand, and dont miss a chance to shout about it?
  11. 11. Those people really matter, butmay not show up in the traditional business analytics...
  12. 12. We all know people who lovecertain products and services...
  13. 13. That „love‟ often has a verytenuous relationship to repeat purchases or measurable customer value...
  14. 14. Some people buy once, and love you forever...
  15. 15. But...
  16. 16. By focusing on current orrecent customers, encouraging repeat purchases, and improving lifetime value...
  17. 17. Are we ignoring the really important people?
  18. 18. Awareness InterestEvaluation IntentPurchase
  19. 19. But this funnel doesn‟t cater for „lifetime customers‟, or their influence on other people...
  20. 20. The McKinsey model puts it another (better) way...
  21. 21. Evaluation Loyalty loop Purchase Initialconsideration Trigger Postpurchase experience
  22. 22. When evaluating, 92% of customers rely on people they know
  23. 23. That‟s „Known Peer Influence‟... ...and it‟s huge.
  24. 24. The more people you have in the loyalty loop... ...the more they can positivelyinfluence those in the Evaluation stage
  25. 25. So... We should be carefulwhen calculating one customer as worth more than another
  26. 26. Doing so risks neglecting the true „lifetime customers‟ who areinfluencing their network every day
  27. 27. Some people might buy little, but influence a lot...
  28. 28. So...what is a „lifetime customer‟?
  29. 29. • Someone who may or may NOT be a customer• Someone who cares• Someone who tells people they care
  30. 30. So what do we do about them?
  31. 31. Find them.Look for the signals that an evangelist gives off... (they might be different from the signals you‟re currently looking for)
  32. 32. Define the behaviours that constitute a „fan‟ or your company... ...they might be difficult to spot at first
  33. 33. Automate the search for these behaviours, and set them as triggers...
  34. 34. Impress them Shockingly good service Personalised messagesTimely and targeted content
  35. 35. It‟s not easy to get people to „love‟ you...
  36. 36. You have to go „above and beyond‟...
  37. 37. In digital terms, that means clever nurture strategies, tied to intelligentand sensitive content and campaigns
  38. 38. Facilitate evangelism...
  39. 39. And.. turn mere „repeat customers‟ into lifelong, unpaid, trusted salesmen...

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