The document discusses strategies for customer acquisition and retention. It emphasizes using data to continuously test and optimize tactics across the customer journey from awareness to advocacy. The goal is to lower customer acquisition costs while increasing lifetime value through a balanced approach of learning customer needs, testing strategies, and promoting insights gained.

1. Customer acquisition and
retention strategy
• Business Objectives
• Strategy
• Tactical Framework
• Examples (LTV, CAC)
• Learn
• Segment and survey
• Test and discovery
• AB Texting
• Evaluation
• Promote
• Insights

2. CUSTOMER ACQUISITION COST < Lifetime Value
Creating a strategy requires a process of discovery to find the correct balance
Acquisition,
Conversion,
Referral
Retentions,
Loyalty, UX
A Balanced
Business Model

3. Strategy for lowering CAC and increasing LTV through a fully
integrated virtuous cycle of Learn, Test, Promote
WE CAN NOW CREATE A
CONTINUOUS FEEDBACK
LOOP USING ACTIONABLE
ANALYTICS FOR
AGGREGATING DATA FROM
DISPARATE SOURCES,
RUNNING ADVANCES
SEGMENTATION, TARGETING
AND RETARGETING
CUSTOMERS ACROSS
MULTIPLE CHANNELS THAT
WILL ULTIMATELY GROW THE
CUSTOMER BASE.
Learn
Test
Promote

4. Return & Refer
Tactical Digital Shopper Marketing
Journey Framework
Awareness
Consideration
Purchase
Intent
Loyalty &
Advocacy
Find the triggers that are driving conversion
• What is it?, Reach
• Contextual: Can I see what I am searching for?
• How does it help me?, Engagement
• What does it do?
• Relevancy: Does it help my needs?
• Cost of ownership?
• Transparency, Clarity, conversion
• I clearly understand and confidence in all
costs of my transaction
• I am genuinely satisfied with my experience
• Proactive: AT&T anticipates my needs/wants
• I share my experience with others
• I will come back again

5. CUSTOMER ACQUISITION COST / CHANNEL
Click based attribution model
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
Need to optimize
display ads and lower
the cost through
testing and ideation

6. CUSTOMER LIFETIME VALUE
5% increase in retention will yield and overall 10% increase in profitability
FUTURE CALL CENTER LTV
5% increate in retention
= 30% increase in sales
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%
OVERALL INCREASE PROFITABILITY 10%

7. Learn
Who is your audience?

8. Segment and Survey
Gain a deep understand of what
makes buyers buys 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

9. 9
Test your messaging strategy against cohorts and segments

10. Ideate using AB testing and customer feedback:
A virtuous feedback cycle, test for discovery not just validation
A – Control
B – Test - No Hero
95%
visitors
5%
visitors
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AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.
20%
conversion
Goal
50%
conversion
Wireless/home
Wireless/home
AB
Engine

11. Design the AB Test
20%Increase in
34% conversion rate 54% conversion rate
Control Test
11 © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.
conversion rate
Sometimes making small
incremental changes can result
in a big impact on conversion

12. The value in A/B Testing is learning
• The Obama campaign used simple multi-variant testing on their donor pages
which tested many different images, CTAs, and headlines.
This combination saw an increase of 40% in sign-ups that resulted in
$60M in incremental donations.
12 © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.

13. Digital Marketing and Messaging need to be integrated!
Strategy drives both marketing ads and landing pages
Promote

14. Engagement = Sales

15. 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 table 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

16. Thank
You

17. INDEX

18. Integration and Tracking
Track users across all properties and aggregate that behavior tie it back directly
to the consumer database.
mobile web offline

19. CUSTOMER LIFETIME VALUE
And increase in repeat customers over time from 16% to 20% for call center and from
6% to 11% for online will yield and overall 10% increase in profitability
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 6%
FUTURE ONLINE LTV
LAST YEAR 2013 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
% Will Repeat Next Year 11% 9% 7% 6% 5%
Average Revenue / Transaction = $2,511 $284 $225 $168 $145 $128
Discount Rate 8%
NPV Of Transactions $3,294
Margin 10%
LTV Customer $329
% Increase 12%
OVERALL INCREASE PROFITABILITY 10%

20. CURRENT CAC
New Customer Booking 166,243
Repeat Customer Booking 26,567
% total Repeat customers 16%
Total 192,810
Total Cost of Acquiring new customers $29,455,647
Customer Acquisition Cost $177
FUTURE CAC WITH HIGH REFER
% New Referral Bookings 5%
New Referral Customers 8,312
174,555
Repeat Customer Booking 30,813
% Total Repeat Customers 16%
Total 205,368
Total Cost Of Acquiring New Customers $29,455,647
Customer Acquisition Cost $169
Increase Profitability For Refer 5%
Total Increase In Profitability Return And
Refer
15%
CUSTOMER ACQUISITION COST
By increasing referral traffic by 5% we can add more then 8k new customers

21. EXAMPLES OF AN IMPRESSION BASED ATTRIBUTION
MODEL (Not CC Data)
CAC for display
goes from $320
to $134

22. CUSTOMER LIFETIME VALUE
On average the present value of all customer transitions based on the probability of
returning
CALL CENTER LTV
LAST YEAR 2013 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
% Will Repeat Next Year 16% 13% 10% 8% 7%
Call Center Cost Per Transaction $50
Average Revenue / Transaction = $2,519 $409 $323 $242 $209 $184
Discount Rate 8%
NPV of transactions $3,646
Margin 10%
LTV Customer $365
ONLINE LTV
LAST YEAR 2013 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
% Will Repeat Next Year 6% 5% 4% 3% 3%
Average Revenue / Transaction $2,511 $158 $125 $93 $81 $71
Discount Rate 8%
NPV Of Transactions $2,946
Margin 10%
LTV Customer $295

23. REVENUE / BOOKING FOR ONLINE AND CALL CENTER
Online represents about 60% of all revenue vs. 40% for call center.
Repeat customers are 10% for online and 27% for call center.
BOTH ONLINE AND CALL CENTER ONLINE ONLY CALL CENTER ONLY
REVENUE % OF TOTAL % OF TOTAL
new $419,644,107 $263,374,428 63% $156,269,678 37%
Repeat $69,023,612 $27,243,472 39% $41,780,140 61%
Total $488,667,718 $290,617,900 59% $198,049,818 41%
% repeat 16% 10% 27%
CUSTOMER BOOKINGS
new 166,243 105,303 63% 60,940 37%
Repeat 26,567 10,419 39% 16,148 61%
Total 192,810 115,722 60% 77,088 40%
% repeat 16% 10% 26%
REVENUE / BOOKING
new $2,524 $2,501 $2,564
Repeat $2,598 $2,615 $2,587
Total $2,534 $2,511 $2,569
% increase $ for repeat 3% 5% 1%

24. OVERALL COST AND BOOKINGS / CHANNEL
CLICK BASED ATTRIBUTION MODEL
Paid Search and Travel represent over 90% of cost. However they account for only 50%
of bookings.
COST BY CHANNEL TOTAL 2013 % TOTAL
Paid Search $14,359,266 49%
Travel Channel $12,624,935 43%
Email $428,929 1%
Organic $265,998 1%
Affiliate $1,268,523 4%
Display $507,996 2%
Social $- 0%
Total $29,455,647 100%
WITHOUT DIRECT AND REFERRAL
TOTAL NEW BOOKING
Paid Search 52,479 32%
Travel Channel 28,647 17%
Email 34,679 21%
Organic 38,968 23%
Affiliate 6,564 4%
Display 813 0%
Social 4,094 2%
REPEAT TRANSACTIONS 26,567
TOTAL NEW 166,243 100%
Paid Search
Travel Channel
Email
Organic
Affiliate
Display
Social
Paid Search
Travel Channel
Email
Organic
Affiliate
Display
Social
Repeat transactions