Playing the Marketing Long Game
•
0 likes•2,326 views
Cassie Lancellotti-Young discusses the importance of retention over new customer acquisition and emphasizes measuring engagement quality over quantity. She highlights that retention is 5x more cost-effective but only 16% of companies primarily focus on it. Short-term gains in leads and conversions may not translate to long-term customer value. Testing should evaluate both immediate and downstream impacts to understand true customer lifetime value.
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (20)
Similar to Playing the Marketing Long Game
Similar to Playing the Marketing Long Game (20)
More from Work-Bench
More from Work-Bench (11)
Recently uploaded
Recently uploaded (20)
Playing the Marketing Long Game
- 1. www.sailthru.com cyoung@sailthru.com Cassie Lancellotti-Young VP Analytics and Optimization, Sailthru @dukecass @sailthru cyoung@sailthru.com Playing the Marketing Long Game: Near-Term Wins vs. Long-Term Value
- 2. • Framing the Metrics that Matter: Retention’s Revenge ! • Understanding the Quality/Quantity Conundrum ! • Discerning Campaign Testing vs. Cohort Testing ! • Case Study: Marketing at Sailthru ! • Q&A Today’s Agenda
- 3. Retention. It is 5x more cost-effective to retain an existing customer than to acquire a new one
- 4. …yet only 16% of companies put primary focus on retention S o u r c e : E c o n s u l t a n c y 2 0 1 3 C r o s s - C h a n n e l M a r k e t i n g R e p o r t
- 5. www.sailthru.com sales@sailthru.com Why is this dangerous? Today is different from tomorrow… TODAY:! Signup Capture $10,000 ad spend! 100 leads $100 CPA TOMORROW:! Customer Acquisition $10,000 ad spend! 100 leads 10 buyers! $1,000 CPA(C)
- 6. www.sailthru.com sales@sailthru.com Marketing 101 – customer unit economics Lifetime Value - Acquisition Cost >> 0 CLV or LTV CAC TODAY:! Signup Capture $10,000 ad spend! 100 leads! $100 CPA! $750 CLV! PROFITABLE?!?! TOMORROW:! Customer Acquisition $10,000 ad spend! 100 leads! 10 buyers! $1,000 CPA(C)! $750 CLV! NOT SUSTAINABLE!
- 7. www.sailthru.com sales@sailthru.com To put it another way… 2.4% lift in two-year lifetime value!
- 8. ENGAGEMENT matters most • Many ways to qualify “engagement,” but it’s about quality (vs. quantity) and building sustainable customer relationships ! • Conversions (e.g. demo requests) today do not necessarily breed engagement tomorrow, but engagement (e.g. newsletter subscription) might breed conversions – always measure the downstream impact
- 9. Find the metrics that matter. Understand trade-offs between top-of-funnel and further down, quality vs. quantity
- 10. Source: Forrester 2012 66% of marketers use open rates as the primary metric for email performance analysis
- 11. • Twitter – 30 follows as quickly as possible ! • Facebook – 7 friends in 10 days ! • Zynga – “D1” metrics; what happens post day0? ! • Sailthru – what pages on our website are they visiting? “Magic numbers” – the tipping point for customer engagement
- 12. Measurement must be apples-to-apples: no cohort left behind!
- 13. (even if you do choose to look at a metric like open rate!)
- 14. Engagement is about quality, but we must be cognizant of trade-offs…
- 15. • 70 million emails sent, compared Gmail rates vs. weighted average of Yahoo-Hotmail-AOL ! • Open rates down (magnitude as much as 94%) ! • Value per open up (degree as much as 705%) ! • Optimization metric = total value per email sent; is improved quality enough to offset dip in quantity? Example: Gmail promotional tabs
- 16. • Business Insider – varied CTR impact, 51% lift in PVs per open ! ! ! • Cult Cosmetics – varied CTR effect, 11.2% lift in cart conversion Example: responsive design in email
- 17. • Discounts and trials are not free candy – often result in lower renewal rates as well as reduced willingness to pay Example: free trials!
- 18. Play the long game. Think beyond optimizing for the here and now; it’s about cultivating long-term value.
- 19. A/B tests will drive incremental returns, but most material lift comes from cohort tests
- 20. CELL A: PRODUCTS Pop Quiz/Case Study: Country Outfitter CELL B: CONTENT • Cell A wins for gross conversions today ! • Cell B wins for average order value (AOV) and lifetime revenue per user! ! • Same frameworks apply for B2B
- 21. …but challenges come with balancing lightweight testing with longitudinal studies, so test often and revisit regularly
- 23. Sneak Peek: Sailthru Marketing Stack
- 24. …but arguably our most powerful marketing tool?
- 25. Sailthru’s marketing funnel suspects / leads marketing qualified leads (MQLs) sales qualified leads (SQLs) wins annual contract value • How do we attract leads? ! • How do we score those leads? ! • Think about both VELOCITY and QUALITY, especially for Lead > MQL conversion ! • Measure across channels (inbound, outbound, events, referrals) – e.g. Sailthru aims for 3x ROI for each event investment
- 26. The quality/quantity trade-off remains critical… Forrester white paper download
- 27. Q&A www.sailthru.com ! sales@sailthru.com! 817.812.8689! @sailthru! NYC HQ 160 Varick St., 12th Floor! New York, NY 10013 San Francisco 25 Taylor St., Room 724! San Francisco, CA 94102 London! 18 Soho Square! London, UK, W1D 3QL Los Angeles! 7083 Hollywood Blvd! Los Angeles, CA 90028