This session was presented at the LSA19 event in Dana Point, California, February 25-27, 2019.

1. How to Leverage the Power of
Connected SMB Customer Data
Jay Bean, CEO FreshLime

2. As an industry we’ve set
Local SMB’s up for FAILURE!

3. Disconnect – They need customers

4. Disconnect – But they just get leads
BTW- Lead costs
have increased over
3X in the past 8 years

5. A shared focused on “the customer” lifecycle is necessary
First Purchase
Becomes
Customer
– High Cost
– Low Value
– Low Cost
– High Value

6. Benefits of a connected customer data strategy

7. What is customer data & how can it help SMB’s?

8. Customer data points are taken from a local services company
• Company has been in business for 8-10 years
• Over 13,000 residential and commercial customers
• 8600 Single Visit, 4400 repeat or loyal customers
• Over 25,000 paid customer visits
• General repairs, Emergency Service, & Installation

9. It goes beyond leads, contacts, or customer records?

10. What else do we know about those “Valuable” contacts?

11. Customer Contact Records

12. Today every customer contact looks the same
Do They All Look The Same?

13. Chris
Johnson
W/ NAT
Chris
Johnson
W/ NAT
Chris
Johnson
W/ NAT
Basic Customer Contact Records

14. Most SMB’s have one
customer segment
One Segment of Customers
“I hope they come back.”

15. Chris
Johnson
W/ NAT
LTV $175
Chris
Johnson
W/ NAT
LTV $1750
Chris
Johnson
W/ NAT
LTV $10,700
Basic Customer Contact Records w/ Transactions

16. Multiple Customer Segments
Some segmentation gives
additional understandingOne Segment of Customers
“I know some came back.”

17. Chris Johnson
Single Visit
LTV $175
- Residential Customer
- Consultant
- Income ~$750K
- Home Value $6.05M
- Home Town: Las Vegas
- Married
- 49 year old (Male)
- iPhone, iPad
- Active on Facebook
- Likes to Travel
- MBA Harvard
- Left Feedback
- Opened email 12/13/2018
- Email opt-in
Christine Johnson
Repeat Customer
LTV $1750
- Residential Customer
- Single
- Income Unknown
- Home Value: $72K
- Active on Facebook
- 54 Years Old (Female)
- Likes Camping
- iPhone User
- Home Town: Grapevine TX
- Student at ASU
- Fluent in Spanish
- Left Google Review 9/13/2017
- Opened email 10/17/2018
- Visited Website 10/17/2018
- SMS opt-in
- Email opt-in
Christopher P.
Johnson
Single Customer
LTV $10,700
- Commercial Customer
- Handy Man
- Income $95K
- Home Value: 297K
- Married with 3 kids
- 31 Years Old (Male)
- 2 Car -2012 Toyota Van, 2013 Ford
F150
- Android User
- Facebook User but not active
- Eats Out Daily
- Home Town Denver CO
- Dream Vacation: Disneyland
- SMS opt-in
- Email opt-in
Enhanced 360-degree view of the Customer

18. Personalized engagement
on a one-on-one basisMultiple Customer SegmentsOne Segment of Customers Segment of One
“We can predict who will come back.”

19. $0.00
$750.00
$1,500.00
$2,250.00
$3,000.00
Single Repeat Loyal
AOV
LTV on a Loyal Customer is 12x more than Single

20. 60-80% of 1st time purchasers will never repeat
2.05
Timing is critical
to move a lead to
a first purchase,
and a first time
purchase to a
repeat customer.

21. 1. We knew the likelihood of getting a repeat purchase after 100 days drops significantly.
2. We knew 53% of repeat customers become loyal customers within 12 months.
3. We knew loyal customers home values are 11% higher than repeat customers.
4. We knew you lose money on 1st time purchasers that don’t repeat.
5. We knew 60-80% of all 1st time purchasers would never purchase again.
Would we do anything different?
What if…

22. Connected customer,
transaction, & engagement
data was used to increase
repeat purchases.
0
20
40
60
80
100
120
140
160
180
200
2016 Without CDP 2018 With CDP
Decreased time between 1st & 2nd purchase by 274%

23. 18 Months Ago The Results Were Compelling

24. Today The Results Are Even More Compelling
Rev: $2855 Profit: $798
Rev: $1003 Profit: $226
Rev: $234 Loss: $51
$6
60% of customers
$200
Profit Margin Increased
from 20% to 28%

25. WHY the “CUSTOMER” IS SO IMPORTANT
80% of a SMB’s future profits will come from just 20% of its existing customers

26. WHY the “CUSTOMER” IS SO IMPORTANT
Increasing customer retention rates by 5% increases profits by 25-95%

27. WHY the “CUSTOMER” IS SO IMPORTANT
The probability of converting an existing customer is 60-70%,
while the probability of converting a new prospect is only 5-20%

28. Clearly, maximizing the lifetime value of every customer
who reaches Conversion should be top-of-mind.
The goal should be to get the customer into that
spiral and make their experience so amazing
they never want to leave.

29. Jay Bean
jbean@freshlime.com