SlideShare a Scribd company logo
© 2015 Copyright. All rights reserved by AT&T
1
Customer Acquisition and
Retention Strategy
Andy Lammers
Andy.lammers@att.com
© 2015 Copyright. All rights reserved by AT&T
Challenges
Quantifying customer behavior and tying it to ROI
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Consumer AB Test Performance
3
0
12.5
25
37.5
50
Very Poor Poor Neutral Good Very Good
0%
70%
5% 7%
14%
18%
Conversation Rate Lift Performance
(≤5%) (-5% to -1%) (-1% to -1%) (1% to 5%) (>5%)
The majority of
ideas are neutral
or negative
PercentageofTotalTests
56%
7%5%
A histogram of all the tests performed by the consumer optimization team reveals that the vast majority of
ideas proposed to improve the site were either neutral or had a negative impact on conversion.
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Defining an evaluation framework
4
88%
The majority of people who indicated some interest in mobile devices never
found a product or category page.
Fallout from Awareness to
Consideration
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Pepsi had a similar problem
5
Making small incremental changes can result in a big
impact on conversion
CONTROL TEST
What looks best is not necessarily what’s
most effective in achieving business.
Increase in
conversion rate
© 2015 Copyright. All rights reserved by AT&T
The Framework
AB testing is a tactic. We need a way to
evaluate why and how it is to be deployed
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy7
Business Objectives
Grow Revenue
• Customer acquisition
• Frequency of purchase
• Increase basket size
Reduce Costs
• Reduce customer acquisition cost
• Loyalty / return engagement
• Advocacy / referral
First Step: Define Business Objectives
Strategy
• Return engagement
• Content messaging
• Learn / test / implement
Tactics
• AB testing
• Segmentation – learn
• RFM analytics
• Promote
• Gamification
Next, develop a strategy to achieve business objectives. Then use tactics to implement the strategy.
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Awareness
Retargeting, email, search, display…
Consideration
• Landing pages
• Product category pages
• Content based algorithms
Purchase Intent
• Shopping cart
• Collaborative based
Loyalty
• Post checkout
• Email reminders
At Samsung we learned the that primary variable for
predicting purchase intent was contract renewal.
We could then target the right customer with the right
message at the right time.
Each step in the customer journey will have specific triggers that will drive customer behavior.
Samsung Shopper Marketing Journey Map
Purchase
• Shopping cart
Learn
Buy
Get
© 2015 Copyright. All rights reserved by AT&T
Measuring Success
If you don’t know where you’ve been,
how do you know where to go?
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
http://techcrunch.com/10/29/how-to-measure-the-true-stickiness-and-success-of-a-facebook-app/
The primary predicator of future
revenue growth is return
engagement.
A pillar of any sales strategy.
WIIF
M
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
11
Appropriate measurement will help influence the optimal
strategy.For Pizza Hut we were able to regress engagement with respect to sales and prove that a product
messaging strategy was superior to coupons.
© 2015 Copyright. All rights reserved by AT&T
Putting it all together
Implementing the Framework:
Tactics and Tools
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
How to implement a
strategy: Target & tailor communication to customers:
identify need and problem
Virtuous Cycle: Learn, Test, Implement, an
iterative Agile Framework
Learn, Test, Implement are the tactics:
This is how you develop, test, and refine
strategy.
Short iterative cycles mitigate risk. These
tactics are used to make process more
efficient. Ultimately, you build a better
product.
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
CUSTOMER ACQUISITION COST < Lifetime Value
Creating a strategy requires a process of discovery to find the correct balance.
CAC < 1$
LTV > 1.10$
10mil DAU
Daily active users
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
COST PER CHANNEL / CUSTOMER BOOKING
Paid Search $274
Travel Channel $441
Email $12
Organic $7
Affiliate $193
Display $625
Social $-
Total CAC $177
Paid Search
Travel Channel
Email
Organic
Affiliate
Display
Social
Total CAC
CUSTOMER ACQUISITION COST by CHANNEL
Click-based attribution model reveals CAC for display is greater then $600 with a LTV of half that. We
are loosing money for every new customer.
Optimize display ads
and lower the cost
through testing and
ideation
The example comes from an online travel agent
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
FUTURE CALL CENTER LTV
LAST YEAR 2013 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
% Will Repeat Next Year 20% 15% 12% 10% 9%
Call Center Cost Per Transaction $50
Average Revenue / Transaction = $2,519 $491 $388 $290 $251 $221
Discount Rate 8%
NPV Of Transactions $3,872
Margin 10%
LTV Customer $387
% Increase 5%
CUSTOMER LIFETIME VALUE (LTV)
CAC for display is $387 which is far less then LTV. We can either increase retention or increase
conversion by targeting the right customers with the right content at the right time.
OVERALL INCREASE PROFITABILITY 10%
5% increase in retention
= 30% increase in LTV
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Learn your audience.
You can not optimize the experience without knowing who you are targeting.
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Segment and Survey
Gain a deep understanding of what
makes buyers buy…
What are the objections that qualified buyers have?
Match the pages purpose with what customers want.
Variable effecting conversion:
• Load time
• Design
• Content
• Concrete and emotional vs. intellectual and abstract
• Promotional messaging
• More detailed product pages
• Personalize
• Value proposition
Once you know who your customers are find out what is important to them.
How do customers define their needs?
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Develop some ideas.
Once we have done the initial analysis we are able to create some ideas that can then be tested.
• Know the bottlenecks and
opportunities
• Know your customer
• Develop some ideas to test
around the needs of these
customers
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy20
Ideate using AB testing to understand behavior
Test for discovery not just validation
A – Control
B – Test
95%
visitors
5%
visitors
20% conversion
50% conversion
Goal
Wireless/home
Wireless/home
AB Engine
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy21
The value in A/B testing is learning
This combination saw an increase of 40% in sign-ups
that resulted in $60M in incremental donations.
The Obama campaign used simple multi-variant testing on their donor pages which tested many different
images, CTAs, and headlines.
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Goal is to create alignment internally
Marketing efforts are currently not consistent with landing page content.
Marketing needs to be optimized for landing page content through
an imperial methodology of testing and discovery.
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
Engagement = Sales
Over time there is a direct correlation between sales and optimal content strategy
Sales
© 2015 Copyright. All rights reserved by AT&T
What is next?
What have we done and what
needs to be done?
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
© 2015 Copyright. All rights reserved by AT&T
Archive
Supporting Slides
© 2015 Copyright. All rights reserved by AT&T
| Customer Acquisition and Retention Strategy
KEY INSIGHTS
• Seasonal spikes occur in January and August time frame. However,
purchasing does occur rear round.
• People are browsing midday during the middle of the week on a work
computer, mobile, or tablet device.
• Purchasing is occurring in the evening on home computer presumably after
talking to husband or partner.
• Purchase consideration may take 2 weeks to one day. However research and
planning may start 2 or more months prior to purchase. (More research
required.)
• Consumer skews towards educated females between 25 and 35.
• Customers are looking for:
• Ease of use
• Transparency in pricing
• Product focused messaging around needs of the customer

More Related Content

What's hot

Analytics cross-selling-retail-banking
Analytics cross-selling-retail-bankingAnalytics cross-selling-retail-banking
Analytics cross-selling-retail-banking
Santosh Tiwari
 
Winback and Acquisition Strategies in Customer Relationship Management
Winback and Acquisition Strategies in  Customer Relationship ManagementWinback and Acquisition Strategies in  Customer Relationship Management
Winback and Acquisition Strategies in Customer Relationship Management
Sanath Dasanayaka
 
Coin Loyalty CRM
Coin Loyalty CRMCoin Loyalty CRM
Coin Loyalty CRM
Sajosh Joy
 
Strategies for cross selling success - Banking
Strategies for cross selling success - BankingStrategies for cross selling success - Banking
Strategies for cross selling success - Banking
MARC USA
 
How to Create a Customer Segmentation Model
How to Create a Customer Segmentation ModelHow to Create a Customer Segmentation Model
How to Create a Customer Segmentation Model
Mark Haubert
 
Importance Of Retention
Importance Of RetentionImportance Of Retention
Importance Of Retention
Webanalisten .nl
 
Cross-Sell and Upsell Strategies in the Channel
Cross-Sell and Upsell Strategies in the ChannelCross-Sell and Upsell Strategies in the Channel
Cross-Sell and Upsell Strategies in the Channel
eCoast
 
Introducing ADSPORT Sales Leads on Realistic Budgets
Introducing ADSPORT Sales Leads on Realistic Budgets Introducing ADSPORT Sales Leads on Realistic Budgets
Introducing ADSPORT Sales Leads on Realistic Budgets
Marketing Consultant
 
Customer Loyalty Measurement Program
Customer Loyalty Measurement ProgramCustomer Loyalty Measurement Program
Customer Loyalty Measurement Program
Dunn Solutions Group
 
Chapter 5 Creating Customer Value, Satisfaction And Loyalty
Chapter 5 Creating Customer Value, Satisfaction And LoyaltyChapter 5 Creating Customer Value, Satisfaction And Loyalty
Chapter 5 Creating Customer Value, Satisfaction And LoyaltyDiarta
 
Cross-Selling: five keys to success in banking
Cross-Selling: five keys to success in bankingCross-Selling: five keys to success in banking
Cross-Selling: five keys to success in banking
Alexander Huun
 
Customer Retention
Customer Retention Customer Retention
Customer Retention
Somo
 
Avoid The Segmentation Trap (Experian)
Avoid The Segmentation Trap (Experian)Avoid The Segmentation Trap (Experian)
Avoid The Segmentation Trap (Experian)
Tony Mooney
 
Sales funnel
Sales funnel   Sales funnel
Sales funnel
Gyanendra Munda
 
Building cutsomer relationship
Building cutsomer relationshipBuilding cutsomer relationship
Building cutsomer relationship
Deepak25
 
Thesis presentation
Thesis presentationThesis presentation
Thesis presentation
Gillyan Gowarty
 
Creating customer value, satisfaction and loyalty
Creating customer value, satisfaction and loyalty Creating customer value, satisfaction and loyalty
Creating customer value, satisfaction and loyalty
Muhammad Zeeshan Baloch
 
CREATING CUSTOMER value, satisfaction and loyalty
CREATING CUSTOMER value, satisfaction and loyaltyCREATING CUSTOMER value, satisfaction and loyalty
CREATING CUSTOMER value, satisfaction and loyalty
Sajjad Sayed
 
Customer Segmentation
Customer SegmentationCustomer Segmentation
Customer Segmentation
Carlos Soares
 

What's hot (19)

Analytics cross-selling-retail-banking
Analytics cross-selling-retail-bankingAnalytics cross-selling-retail-banking
Analytics cross-selling-retail-banking
 
Winback and Acquisition Strategies in Customer Relationship Management
Winback and Acquisition Strategies in  Customer Relationship ManagementWinback and Acquisition Strategies in  Customer Relationship Management
Winback and Acquisition Strategies in Customer Relationship Management
 
Coin Loyalty CRM
Coin Loyalty CRMCoin Loyalty CRM
Coin Loyalty CRM
 
Strategies for cross selling success - Banking
Strategies for cross selling success - BankingStrategies for cross selling success - Banking
Strategies for cross selling success - Banking
 
How to Create a Customer Segmentation Model
How to Create a Customer Segmentation ModelHow to Create a Customer Segmentation Model
How to Create a Customer Segmentation Model
 
Importance Of Retention
Importance Of RetentionImportance Of Retention
Importance Of Retention
 
Cross-Sell and Upsell Strategies in the Channel
Cross-Sell and Upsell Strategies in the ChannelCross-Sell and Upsell Strategies in the Channel
Cross-Sell and Upsell Strategies in the Channel
 
Introducing ADSPORT Sales Leads on Realistic Budgets
Introducing ADSPORT Sales Leads on Realistic Budgets Introducing ADSPORT Sales Leads on Realistic Budgets
Introducing ADSPORT Sales Leads on Realistic Budgets
 
Customer Loyalty Measurement Program
Customer Loyalty Measurement ProgramCustomer Loyalty Measurement Program
Customer Loyalty Measurement Program
 
Chapter 5 Creating Customer Value, Satisfaction And Loyalty
Chapter 5 Creating Customer Value, Satisfaction And LoyaltyChapter 5 Creating Customer Value, Satisfaction And Loyalty
Chapter 5 Creating Customer Value, Satisfaction And Loyalty
 
Cross-Selling: five keys to success in banking
Cross-Selling: five keys to success in bankingCross-Selling: five keys to success in banking
Cross-Selling: five keys to success in banking
 
Customer Retention
Customer Retention Customer Retention
Customer Retention
 
Avoid The Segmentation Trap (Experian)
Avoid The Segmentation Trap (Experian)Avoid The Segmentation Trap (Experian)
Avoid The Segmentation Trap (Experian)
 
Sales funnel
Sales funnel   Sales funnel
Sales funnel
 
Building cutsomer relationship
Building cutsomer relationshipBuilding cutsomer relationship
Building cutsomer relationship
 
Thesis presentation
Thesis presentationThesis presentation
Thesis presentation
 
Creating customer value, satisfaction and loyalty
Creating customer value, satisfaction and loyalty Creating customer value, satisfaction and loyalty
Creating customer value, satisfaction and loyalty
 
CREATING CUSTOMER value, satisfaction and loyalty
CREATING CUSTOMER value, satisfaction and loyaltyCREATING CUSTOMER value, satisfaction and loyalty
CREATING CUSTOMER value, satisfaction and loyalty
 
Customer Segmentation
Customer SegmentationCustomer Segmentation
Customer Segmentation
 

Similar to Customer acquisition and_retention_strategy_v10_kd

The keys to scaling your customer success program
The keys to scaling your customer success programThe keys to scaling your customer success program
The keys to scaling your customer success program
Gainsight
 
Loyalty management more than earning and spending points
Loyalty management  more than earning and spending pointsLoyalty management  more than earning and spending points
Loyalty management more than earning and spending points
Elena Martínez
 
Customer Post Purchase Journey
Customer Post Purchase JourneyCustomer Post Purchase Journey
Customer Post Purchase Journey
Grazitti Interactive
 
10 Laws of Customer Success
10 Laws of Customer Success10 Laws of Customer Success
10 Laws of Customer Success
Gainsight
 
Lean Startup & Business Modelling
Lean Startup & Business ModellingLean Startup & Business Modelling
Lean Startup & Business Modelling
Abhijit Mhetre
 
Lean Startup & Business Modelling
Lean Startup & Business ModellingLean Startup & Business Modelling
Lean Startup & Business Modelling
canvazify
 
Make 2016 the Year You Conquer Customer Success
Make 2016 the Year You Conquer Customer SuccessMake 2016 the Year You Conquer Customer Success
Make 2016 the Year You Conquer Customer Success
Gainsight
 
Marketing Decision-Makers: Stop Thinking Tactics, Start Thinking Campaigns
Marketing Decision-Makers: Stop Thinking Tactics, Start Thinking CampaignsMarketing Decision-Makers: Stop Thinking Tactics, Start Thinking Campaigns
Marketing Decision-Makers: Stop Thinking Tactics, Start Thinking Campaigns
Capstrat
 
Driving Results through Advertising for an ABM Strategy
Driving Results through Advertising for an ABM StrategyDriving Results through Advertising for an ABM Strategy
Driving Results through Advertising for an ABM Strategy
Demandbase
 
Mapping the Customer's Journey - The Road to Success
Mapping the Customer's Journey - The Road to SuccessMapping the Customer's Journey - The Road to Success
Mapping the Customer's Journey - The Road to Success
Gainsight
 
Growth Hacking for Lean Startups
Growth Hacking for Lean StartupsGrowth Hacking for Lean Startups
Growth Hacking for Lean Startups
StratAlignGroup
 
Growth hack for startups
Growth hack for startupsGrowth hack for startups
Growth hack for startups
Christophe Monnier
 
Cross Functional Alignment Around the Customer: A Data Driven Approach to Cus...
Cross Functional Alignment Around the Customer: A Data Driven Approach to Cus...Cross Functional Alignment Around the Customer: A Data Driven Approach to Cus...
Cross Functional Alignment Around the Customer: A Data Driven Approach to Cus...
Daniel Oberes
 
Marketing Operations ROI: It`s Simpler and Way Harder Than You Think
Marketing Operations ROI: It`s Simpler and Way Harder Than You ThinkMarketing Operations ROI: It`s Simpler and Way Harder Than You Think
Marketing Operations ROI: It`s Simpler and Way Harder Than You Think
ClearAction Continuum
 
5 Prescriptions for Attracting and Engaging Your Audience
5 Prescriptions for Attracting and Engaging Your Audience5 Prescriptions for Attracting and Engaging Your Audience
5 Prescriptions for Attracting and Engaging Your Audience
WebAttract, LLC
 
5 Prescriptions WebAttractCMIAdobe 9.15.15
5 Prescriptions WebAttractCMIAdobe 9.15.155 Prescriptions WebAttractCMIAdobe 9.15.15
5 Prescriptions WebAttractCMIAdobe 9.15.15
WebAttract, LLC
 
Customer Success Webinar Series: How Automation is revolutionizing Customer S...
Customer Success Webinar Series: How Automation is revolutionizing Customer S...Customer Success Webinar Series: How Automation is revolutionizing Customer S...
Customer Success Webinar Series: How Automation is revolutionizing Customer S...
Gainsight
 
2015 Minneapolis, Mn - Fall AMA Workshops
2015 Minneapolis, Mn - Fall AMA Workshops2015 Minneapolis, Mn - Fall AMA Workshops
2015 Minneapolis, Mn - Fall AMA Workshops
Jon Barlow
 
Minneapolis, Mn - AMA Fall Workshops 2015
Minneapolis, Mn - AMA Fall Workshops 2015Minneapolis, Mn - AMA Fall Workshops 2015
Minneapolis, Mn - AMA Fall Workshops 2015
Jon Barlow
 
[Slides] #netvu15 Marketing Automation in 2015
[Slides] #netvu15 Marketing Automation in 2015[Slides] #netvu15 Marketing Automation in 2015
[Slides] #netvu15 Marketing Automation in 2015
Michael Jans Advisory
 

Similar to Customer acquisition and_retention_strategy_v10_kd (20)

The keys to scaling your customer success program
The keys to scaling your customer success programThe keys to scaling your customer success program
The keys to scaling your customer success program
 
Loyalty management more than earning and spending points
Loyalty management  more than earning and spending pointsLoyalty management  more than earning and spending points
Loyalty management more than earning and spending points
 
Customer Post Purchase Journey
Customer Post Purchase JourneyCustomer Post Purchase Journey
Customer Post Purchase Journey
 
10 Laws of Customer Success
10 Laws of Customer Success10 Laws of Customer Success
10 Laws of Customer Success
 
Lean Startup & Business Modelling
Lean Startup & Business ModellingLean Startup & Business Modelling
Lean Startup & Business Modelling
 
Lean Startup & Business Modelling
Lean Startup & Business ModellingLean Startup & Business Modelling
Lean Startup & Business Modelling
 
Make 2016 the Year You Conquer Customer Success
Make 2016 the Year You Conquer Customer SuccessMake 2016 the Year You Conquer Customer Success
Make 2016 the Year You Conquer Customer Success
 
Marketing Decision-Makers: Stop Thinking Tactics, Start Thinking Campaigns
Marketing Decision-Makers: Stop Thinking Tactics, Start Thinking CampaignsMarketing Decision-Makers: Stop Thinking Tactics, Start Thinking Campaigns
Marketing Decision-Makers: Stop Thinking Tactics, Start Thinking Campaigns
 
Driving Results through Advertising for an ABM Strategy
Driving Results through Advertising for an ABM StrategyDriving Results through Advertising for an ABM Strategy
Driving Results through Advertising for an ABM Strategy
 
Mapping the Customer's Journey - The Road to Success
Mapping the Customer's Journey - The Road to SuccessMapping the Customer's Journey - The Road to Success
Mapping the Customer's Journey - The Road to Success
 
Growth Hacking for Lean Startups
Growth Hacking for Lean StartupsGrowth Hacking for Lean Startups
Growth Hacking for Lean Startups
 
Growth hack for startups
Growth hack for startupsGrowth hack for startups
Growth hack for startups
 
Cross Functional Alignment Around the Customer: A Data Driven Approach to Cus...
Cross Functional Alignment Around the Customer: A Data Driven Approach to Cus...Cross Functional Alignment Around the Customer: A Data Driven Approach to Cus...
Cross Functional Alignment Around the Customer: A Data Driven Approach to Cus...
 
Marketing Operations ROI: It`s Simpler and Way Harder Than You Think
Marketing Operations ROI: It`s Simpler and Way Harder Than You ThinkMarketing Operations ROI: It`s Simpler and Way Harder Than You Think
Marketing Operations ROI: It`s Simpler and Way Harder Than You Think
 
5 Prescriptions for Attracting and Engaging Your Audience
5 Prescriptions for Attracting and Engaging Your Audience5 Prescriptions for Attracting and Engaging Your Audience
5 Prescriptions for Attracting and Engaging Your Audience
 
5 Prescriptions WebAttractCMIAdobe 9.15.15
5 Prescriptions WebAttractCMIAdobe 9.15.155 Prescriptions WebAttractCMIAdobe 9.15.15
5 Prescriptions WebAttractCMIAdobe 9.15.15
 
Customer Success Webinar Series: How Automation is revolutionizing Customer S...
Customer Success Webinar Series: How Automation is revolutionizing Customer S...Customer Success Webinar Series: How Automation is revolutionizing Customer S...
Customer Success Webinar Series: How Automation is revolutionizing Customer S...
 
2015 Minneapolis, Mn - Fall AMA Workshops
2015 Minneapolis, Mn - Fall AMA Workshops2015 Minneapolis, Mn - Fall AMA Workshops
2015 Minneapolis, Mn - Fall AMA Workshops
 
Minneapolis, Mn - AMA Fall Workshops 2015
Minneapolis, Mn - AMA Fall Workshops 2015Minneapolis, Mn - AMA Fall Workshops 2015
Minneapolis, Mn - AMA Fall Workshops 2015
 
[Slides] #netvu15 Marketing Automation in 2015
[Slides] #netvu15 Marketing Automation in 2015[Slides] #netvu15 Marketing Automation in 2015
[Slides] #netvu15 Marketing Automation in 2015
 

More from Andy Lammers

Andys guideto pm
Andys guideto pmAndys guideto pm
Andys guideto pm
Andy Lammers
 
Andys guidetoux v2
Andys guidetoux v2Andys guidetoux v2
Andys guidetoux v2
Andy Lammers
 
Customer aquisitionandretentionstrategy v3
Customer aquisitionandretentionstrategy v3Customer aquisitionandretentionstrategy v3
Customer aquisitionandretentionstrategy v3
Andy Lammers
 
Influencer strategy
Influencer strategyInfluencer strategy
Influencer strategy
Andy Lammers
 
Viral communications pov
Viral communications povViral communications pov
Viral communications pov
Andy Lammers
 
Social media pov
Social media povSocial media pov
Social media pov
Andy Lammers
 

More from Andy Lammers (6)

Andys guideto pm
Andys guideto pmAndys guideto pm
Andys guideto pm
 
Andys guidetoux v2
Andys guidetoux v2Andys guidetoux v2
Andys guidetoux v2
 
Customer aquisitionandretentionstrategy v3
Customer aquisitionandretentionstrategy v3Customer aquisitionandretentionstrategy v3
Customer aquisitionandretentionstrategy v3
 
Influencer strategy
Influencer strategyInfluencer strategy
Influencer strategy
 
Viral communications pov
Viral communications povViral communications pov
Viral communications pov
 
Social media pov
Social media povSocial media pov
Social media pov
 

Recently uploaded

一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
10h6bbc4
 
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
rosankumar564363
 
一比一原版澳洲悉尼大学毕业证(USYD学位证)如何办理
一比一原版澳洲悉尼大学毕业证(USYD学位证)如何办理一比一原版澳洲悉尼大学毕业证(USYD学位证)如何办理
一比一原版澳洲悉尼大学毕业证(USYD学位证)如何办理
10h6bbc4
 
Customer relationship management notes for Bcom students
Customer relationship management notes for Bcom studentsCustomer relationship management notes for Bcom students
Customer relationship management notes for Bcom students
PratibhaShelake1
 
01 Field+Guide+to+Human-Centered+Design_IDEOorg_English GUIA COMPLETA DETALLA...
01 Field+Guide+to+Human-Centered+Design_IDEOorg_English GUIA COMPLETA DETALLA...01 Field+Guide+to+Human-Centered+Design_IDEOorg_English GUIA COMPLETA DETALLA...
01 Field+Guide+to+Human-Centered+Design_IDEOorg_English GUIA COMPLETA DETALLA...
Jorge Calmett
 
NIMA2024 | AI en de 50% afname van je traffic. Wat nu! | Folkje Berends en Sj...
NIMA2024 | AI en de 50% afname van je traffic. Wat nu! | Folkje Berends en Sj...NIMA2024 | AI en de 50% afname van je traffic. Wat nu! | Folkje Berends en Sj...
NIMA2024 | AI en de 50% afname van je traffic. Wat nu! | Folkje Berends en Sj...
BBPMedia1
 
Product Listing Optimization Presentation - .Gay De La Cruz
Product Listing Optimization Presentation  - .Gay De La CruzProduct Listing Optimization Presentation  - .Gay De La Cruz
Product Listing Optimization Presentation - .Gay De La Cruz
gaydlc2513
 
Premium Graphic Design Templates | Brochures Design Templates
Premium Graphic Design Templates  | Brochures Design TemplatesPremium Graphic Design Templates  | Brochures Design Templates
Premium Graphic Design Templates | Brochures Design Templates
Davion Yost
 
Facebook Marketing Strategy with SNJ Global Services.pptx
Facebook Marketing Strategy with SNJ Global Services.pptxFacebook Marketing Strategy with SNJ Global Services.pptx
Facebook Marketing Strategy with SNJ Global Services.pptx
sarfrazkhanm47
 
Effective Google Ads Strategy to get the best output
Effective Google Ads Strategy to get the best outputEffective Google Ads Strategy to get the best output
Effective Google Ads Strategy to get the best output
Vemio Advertising Services
 
一比一原版美国加利福尼亚大学旧金山分校毕业证如何办理
一比一原版美国加利福尼亚大学旧金山分校毕业证如何办理一比一原版美国加利福尼亚大学旧金山分校毕业证如何办理
一比一原版美国加利福尼亚大学旧金山分校毕业证如何办理
edyaefo
 
Viapulsa - Content Strategist Assignment
Viapulsa - Content Strategist AssignmentViapulsa - Content Strategist Assignment
Viapulsa - Content Strategist Assignment
Amal Agung Cahyadi
 
THE STORY COMMUNICATION Credential 2024.pptx
THE STORY COMMUNICATION Credential 2024.pptxTHE STORY COMMUNICATION Credential 2024.pptx
THE STORY COMMUNICATION Credential 2024.pptx
huyenngo62
 
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
uvnuc
 
E-Learning Vs Traditional Learning_ Benefits and Differences.pdf
E-Learning Vs Traditional Learning_ Benefits and Differences.pdfE-Learning Vs Traditional Learning_ Benefits and Differences.pdf
E-Learning Vs Traditional Learning_ Benefits and Differences.pdf
Mega P
 
Digital Marketing Services Agency in USA
Digital Marketing Services Agency in USADigital Marketing Services Agency in USA
Digital Marketing Services Agency in USA
akramulislamtarek007
 
一比一原版哥伦比亚大学毕业证(Columbia毕业证书)学历如何办理
一比一原版哥伦比亚大学毕业证(Columbia毕业证书)学历如何办理一比一原版哥伦比亚大学毕业证(Columbia毕业证书)学历如何办理
一比一原版哥伦比亚大学毕业证(Columbia毕业证书)学历如何办理
omywaf
 
The Future of B2B Audience Targeting with LinkedIn
The Future of B2B Audience Targeting with LinkedInThe Future of B2B Audience Targeting with LinkedIn
The Future of B2B Audience Targeting with LinkedIn
Tajul Islam
 
DTA Promotion - Marketing Specialist Assignment
DTA Promotion - Marketing Specialist AssignmentDTA Promotion - Marketing Specialist Assignment
DTA Promotion - Marketing Specialist Assignment
Amal Agung Cahyadi
 
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
Higher Education Marketing
 

Recently uploaded (20)

一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
 
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
 
一比一原版澳洲悉尼大学毕业证(USYD学位证)如何办理
一比一原版澳洲悉尼大学毕业证(USYD学位证)如何办理一比一原版澳洲悉尼大学毕业证(USYD学位证)如何办理
一比一原版澳洲悉尼大学毕业证(USYD学位证)如何办理
 
Customer relationship management notes for Bcom students
Customer relationship management notes for Bcom studentsCustomer relationship management notes for Bcom students
Customer relationship management notes for Bcom students
 
01 Field+Guide+to+Human-Centered+Design_IDEOorg_English GUIA COMPLETA DETALLA...
01 Field+Guide+to+Human-Centered+Design_IDEOorg_English GUIA COMPLETA DETALLA...01 Field+Guide+to+Human-Centered+Design_IDEOorg_English GUIA COMPLETA DETALLA...
01 Field+Guide+to+Human-Centered+Design_IDEOorg_English GUIA COMPLETA DETALLA...
 
NIMA2024 | AI en de 50% afname van je traffic. Wat nu! | Folkje Berends en Sj...
NIMA2024 | AI en de 50% afname van je traffic. Wat nu! | Folkje Berends en Sj...NIMA2024 | AI en de 50% afname van je traffic. Wat nu! | Folkje Berends en Sj...
NIMA2024 | AI en de 50% afname van je traffic. Wat nu! | Folkje Berends en Sj...
 
Product Listing Optimization Presentation - .Gay De La Cruz
Product Listing Optimization Presentation  - .Gay De La CruzProduct Listing Optimization Presentation  - .Gay De La Cruz
Product Listing Optimization Presentation - .Gay De La Cruz
 
Premium Graphic Design Templates | Brochures Design Templates
Premium Graphic Design Templates  | Brochures Design TemplatesPremium Graphic Design Templates  | Brochures Design Templates
Premium Graphic Design Templates | Brochures Design Templates
 
Facebook Marketing Strategy with SNJ Global Services.pptx
Facebook Marketing Strategy with SNJ Global Services.pptxFacebook Marketing Strategy with SNJ Global Services.pptx
Facebook Marketing Strategy with SNJ Global Services.pptx
 
Effective Google Ads Strategy to get the best output
Effective Google Ads Strategy to get the best outputEffective Google Ads Strategy to get the best output
Effective Google Ads Strategy to get the best output
 
一比一原版美国加利福尼亚大学旧金山分校毕业证如何办理
一比一原版美国加利福尼亚大学旧金山分校毕业证如何办理一比一原版美国加利福尼亚大学旧金山分校毕业证如何办理
一比一原版美国加利福尼亚大学旧金山分校毕业证如何办理
 
Viapulsa - Content Strategist Assignment
Viapulsa - Content Strategist AssignmentViapulsa - Content Strategist Assignment
Viapulsa - Content Strategist Assignment
 
THE STORY COMMUNICATION Credential 2024.pptx
THE STORY COMMUNICATION Credential 2024.pptxTHE STORY COMMUNICATION Credential 2024.pptx
THE STORY COMMUNICATION Credential 2024.pptx
 
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
 
E-Learning Vs Traditional Learning_ Benefits and Differences.pdf
E-Learning Vs Traditional Learning_ Benefits and Differences.pdfE-Learning Vs Traditional Learning_ Benefits and Differences.pdf
E-Learning Vs Traditional Learning_ Benefits and Differences.pdf
 
Digital Marketing Services Agency in USA
Digital Marketing Services Agency in USADigital Marketing Services Agency in USA
Digital Marketing Services Agency in USA
 
一比一原版哥伦比亚大学毕业证(Columbia毕业证书)学历如何办理
一比一原版哥伦比亚大学毕业证(Columbia毕业证书)学历如何办理一比一原版哥伦比亚大学毕业证(Columbia毕业证书)学历如何办理
一比一原版哥伦比亚大学毕业证(Columbia毕业证书)学历如何办理
 
The Future of B2B Audience Targeting with LinkedIn
The Future of B2B Audience Targeting with LinkedInThe Future of B2B Audience Targeting with LinkedIn
The Future of B2B Audience Targeting with LinkedIn
 
DTA Promotion - Marketing Specialist Assignment
DTA Promotion - Marketing Specialist AssignmentDTA Promotion - Marketing Specialist Assignment
DTA Promotion - Marketing Specialist Assignment
 
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
 

Customer acquisition and_retention_strategy_v10_kd

  • 1. © 2015 Copyright. All rights reserved by AT&T 1 Customer Acquisition and Retention Strategy Andy Lammers Andy.lammers@att.com
  • 2. © 2015 Copyright. All rights reserved by AT&T Challenges Quantifying customer behavior and tying it to ROI
  • 3. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Consumer AB Test Performance 3 0 12.5 25 37.5 50 Very Poor Poor Neutral Good Very Good 0% 70% 5% 7% 14% 18% Conversation Rate Lift Performance (≤5%) (-5% to -1%) (-1% to -1%) (1% to 5%) (>5%) The majority of ideas are neutral or negative PercentageofTotalTests 56% 7%5% A histogram of all the tests performed by the consumer optimization team reveals that the vast majority of ideas proposed to improve the site were either neutral or had a negative impact on conversion.
  • 4. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Defining an evaluation framework 4 88% The majority of people who indicated some interest in mobile devices never found a product or category page. Fallout from Awareness to Consideration
  • 5. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Pepsi had a similar problem 5 Making small incremental changes can result in a big impact on conversion CONTROL TEST What looks best is not necessarily what’s most effective in achieving business. Increase in conversion rate
  • 6. © 2015 Copyright. All rights reserved by AT&T The Framework AB testing is a tactic. We need a way to evaluate why and how it is to be deployed
  • 7. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy7 Business Objectives Grow Revenue • Customer acquisition • Frequency of purchase • Increase basket size Reduce Costs • Reduce customer acquisition cost • Loyalty / return engagement • Advocacy / referral First Step: Define Business Objectives Strategy • Return engagement • Content messaging • Learn / test / implement Tactics • AB testing • Segmentation – learn • RFM analytics • Promote • Gamification Next, develop a strategy to achieve business objectives. Then use tactics to implement the strategy.
  • 8. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Awareness Retargeting, email, search, display… Consideration • Landing pages • Product category pages • Content based algorithms Purchase Intent • Shopping cart • Collaborative based Loyalty • Post checkout • Email reminders At Samsung we learned the that primary variable for predicting purchase intent was contract renewal. We could then target the right customer with the right message at the right time. Each step in the customer journey will have specific triggers that will drive customer behavior. Samsung Shopper Marketing Journey Map Purchase • Shopping cart Learn Buy Get
  • 9. © 2015 Copyright. All rights reserved by AT&T Measuring Success If you don’t know where you’ve been, how do you know where to go?
  • 10. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy http://techcrunch.com/10/29/how-to-measure-the-true-stickiness-and-success-of-a-facebook-app/ The primary predicator of future revenue growth is return engagement. A pillar of any sales strategy. WIIF M
  • 11. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy 11 Appropriate measurement will help influence the optimal strategy.For Pizza Hut we were able to regress engagement with respect to sales and prove that a product messaging strategy was superior to coupons.
  • 12. © 2015 Copyright. All rights reserved by AT&T Putting it all together Implementing the Framework: Tactics and Tools
  • 13. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy How to implement a strategy: Target & tailor communication to customers: identify need and problem Virtuous Cycle: Learn, Test, Implement, an iterative Agile Framework Learn, Test, Implement are the tactics: This is how you develop, test, and refine strategy. Short iterative cycles mitigate risk. These tactics are used to make process more efficient. Ultimately, you build a better product.
  • 14. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy CUSTOMER ACQUISITION COST < Lifetime Value Creating a strategy requires a process of discovery to find the correct balance. CAC < 1$ LTV > 1.10$ 10mil DAU Daily active users
  • 15. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy COST PER CHANNEL / CUSTOMER BOOKING Paid Search $274 Travel Channel $441 Email $12 Organic $7 Affiliate $193 Display $625 Social $- Total CAC $177 Paid Search Travel Channel Email Organic Affiliate Display Social Total CAC CUSTOMER ACQUISITION COST by CHANNEL Click-based attribution model reveals CAC for display is greater then $600 with a LTV of half that. We are loosing money for every new customer. Optimize display ads and lower the cost through testing and ideation The example comes from an online travel agent
  • 16. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy FUTURE CALL CENTER LTV LAST YEAR 2013 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 % Will Repeat Next Year 20% 15% 12% 10% 9% Call Center Cost Per Transaction $50 Average Revenue / Transaction = $2,519 $491 $388 $290 $251 $221 Discount Rate 8% NPV Of Transactions $3,872 Margin 10% LTV Customer $387 % Increase 5% CUSTOMER LIFETIME VALUE (LTV) CAC for display is $387 which is far less then LTV. We can either increase retention or increase conversion by targeting the right customers with the right content at the right time. OVERALL INCREASE PROFITABILITY 10% 5% increase in retention = 30% increase in LTV
  • 17. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Learn your audience. You can not optimize the experience without knowing who you are targeting.
  • 18. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Segment and Survey Gain a deep understanding of what makes buyers buy… What are the objections that qualified buyers have? Match the pages purpose with what customers want. Variable effecting conversion: • Load time • Design • Content • Concrete and emotional vs. intellectual and abstract • Promotional messaging • More detailed product pages • Personalize • Value proposition Once you know who your customers are find out what is important to them. How do customers define their needs?
  • 19. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Develop some ideas. Once we have done the initial analysis we are able to create some ideas that can then be tested. • Know the bottlenecks and opportunities • Know your customer • Develop some ideas to test around the needs of these customers
  • 20. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy20 Ideate using AB testing to understand behavior Test for discovery not just validation A – Control B – Test 95% visitors 5% visitors 20% conversion 50% conversion Goal Wireless/home Wireless/home AB Engine
  • 21. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy21 The value in A/B testing is learning This combination saw an increase of 40% in sign-ups that resulted in $60M in incremental donations. The Obama campaign used simple multi-variant testing on their donor pages which tested many different images, CTAs, and headlines.
  • 22. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Goal is to create alignment internally Marketing efforts are currently not consistent with landing page content. Marketing needs to be optimized for landing page content through an imperial methodology of testing and discovery.
  • 23. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy Engagement = Sales Over time there is a direct correlation between sales and optimal content strategy Sales
  • 24. © 2015 Copyright. All rights reserved by AT&T What is next? What have we done and what needs to be done?
  • 25. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy
  • 26. © 2015 Copyright. All rights reserved by AT&T Archive Supporting Slides
  • 27. © 2015 Copyright. All rights reserved by AT&T | Customer Acquisition and Retention Strategy KEY INSIGHTS • Seasonal spikes occur in January and August time frame. However, purchasing does occur rear round. • People are browsing midday during the middle of the week on a work computer, mobile, or tablet device. • Purchasing is occurring in the evening on home computer presumably after talking to husband or partner. • Purchase consideration may take 2 weeks to one day. However research and planning may start 2 or more months prior to purchase. (More research required.) • Consumer skews towards educated females between 25 and 35. • Customers are looking for: • Ease of use • Transparency in pricing • Product focused messaging around needs of the customer

Editor's Notes

  1. 70% (the red combined) of ideas brought to the consumer group have zero (or negative) impact to the business. While this is taken from consumer, the process we’re using is the same, it’s subjective, decisions are made without visibility. A data driven framework for analysis & development (that is objective in nature) will force the correct code to be written – yielding code that positively impacts business.
  2. Create a framework that standardizes a methodology for opportunities. Foundation for testing opportunities. Decide where to test. Seeing that if customers cannot find the product page, don’t test there. Remove adhawk decision making. Define the testing strategy, introducing analysis of where and how strategy should be implemented. Testing to for discovery, to understand customer behavior at a high altitude.
  3. Result of AB testing call to action above the fold. Tried and true framework used with success. Always test for a conversion rate, NOT total numbers. Always test for a %, test for engagement, time on site, any kind of metric that you can be normalized. Normalized goal metrics. You may not have enough customers to test for conversion rates, and your goal may not be conversion rate. Enterprise goal should be return engagement….Their conversion rate is for lead generation. Goes back to business objectives. If Business objectives are to support sales channels, then metrics that ladder up to engagement is what’s being tested. 20% increase .5 to 1 = 100% increase in conversion rate 10% to 30% = is a 20% increase in conversion rate.
  4. It’s a tactic that supports the strategic roadmap. With problem statement, we need to understand the framework for how and why it is deployed. We need to first understand business objective, then tactics to implement strategy. Testing is an integral part to deploying a strategy. ***KD note: I changed employed to deployed. Is this right?
  5. Top 5 "Actionable“ Items to Drive CSAT Usability: Ease of Use, Learnability, and Delightful NPS (Net Promoter Score) Minimal Touch Simplicity Empowerment
  6. Take the framework previously define and apply to any channel.
  7. KD note: Below the graph I think Stickyness should be with an “i” to be Stickiness….
  8. Test your messaging strategy against cohorts and segments 2 years of data round messaging strategy and compared sales to engagement – comparing promotional pricing versus value messaging. Helped drive strategy with regression analysis. Take a more sustainable approach with product value messaging. Shows the value of the product over promotional pricing. Key is the measurement. Appropriate measurement will help influence the proper strategy. For Pizza Hut we were able to regress engagement with respect to sales and prove that a product messaging strategy was superior to coupons (types of tests: AB testing, segmentation analysis, surveys, user profiling, user demographic profiling, regression testing) AB testing is only 1 part of a comprehensive test based design methodology
  9. Virtuous loop versus a loop that degrades overtime, virtuous cycle Graph has components of actual tactics. Learn Test Implement are the tactics: This is how you develop, refine, and test strategy Short cycles allow for implementation of learning. Use to make process more efficient, ultimately you build a better product, the success or failure of the product is determined by previous release.
  10. Virtuous cycle helps create a balanced business model, through over time, reducing CAC to less than $1. SO the the LTV just above a dollar. Example of adjusting UX of game, ensure people spent enough time on the site, to get the site viral. Increasing return engagement, consequently people spend money and invite friends. Getting 2nd, 3rd, 7th, and 14th day engagement numbers up
  11. KD notes: Made some minor changes to the copy. Please see if it still says what you want it to.
  12. Use good ux flow See placement of content between pages 4 and 5
  13. Use good ux flow See placement of content between pages 4 and 5