Welcome to the webinar which will give you an introduction to Customer Lifecycle Marketing and why this is the new CMO mandate.Before I start I want to point out that I have uploaded a number of attachments to this presentation ranging from a white paper on lifecycle marketing, to an infographic on customer marketing to a free trial of Totango and videos on Totango for Eloqua and Totango for Marketo.
First a short word about Totango. We offer a cloud-based customer intelligence and customer engagement platform that has helped over one hundred software companies to increase conversions, retention and customer lifetime value. However, the lessons learnt from these leading edge software companies as well as our platform are more broadly applicable in other industries as we will see in this presentation.
So let’s first ask ourselves why we would care about customer lifecycle marketing in the first place?
The world has changed a lot. Customers have a much more powerful voice today.Switching costs are low and customers can find information about their options in a minute.They can share good and bad experiences with many using social media.And with pay as you go business model direct revenue is tied to ongoing customer satisfaction.In the software vertical we learnt, from analyzing 10 million software users, that about half of users are not ever using the software that they paid for and almost all of those will end up leaving.On the other hand, powerful big data and analytics technology makes it possible for the first time to truly understand individual users and cater to their personal needs.This is what we call the customer centric enterprise.
So now that we are convinced we need to change and align our sales, marketing and support teams around the customer, the question is how?Customer lifecycle marketing plays a key role in this.What is customer lifeycle marketing?
Simply put it is the art of creating loyal and profitable customers.If you take care of your customers, they will take care of you.Deliver recurring value to customers and recurring revenues will follow.
So how can you retain and grow customers?How can you create happy and loyal customers?TheDemandGen Report recently did a survey where they found that companies have trouble even telling who are their most profitable and loyal customers, let alone do they know how to create proftiable customers pro-actively.
The methodology is simple.Listen to customer events.Understand customer insights.And engage customers with pro-active actions.Let’s walk through each of these step by step.
The first is to listen to your customer.Especially in the digital age, you know a lot about your customers.Most customer actions are recorded digitally and can be monitored and analyzed.The inter-actions of customers with your service happen online.For a software company these are all inter-actions and usage of the product but even for FedEx, ordering and tracking shipments, now happen online.Inter-actions with your support staff and sales personnel are recorded digitally.And inter-actions and purchase history are also available in digital format.If you monitor these customer events in real-time and collect all these customer events in one single database, you can learn a lot.
Next, the key is to look for customer events that can help you PREDICT which customers will become loyal and profitable and which are off track.We are looking for leading indicators. Things like surveys are lagging indicators. Whether or not I am using the service I pay for is a leading indicator.It is possible to translate this continuous stream of individual real-time customer events into insights about risks (of churn) and opportunity (of sales) using predictive analytics.
Before we go further, let’s look at a couple of examples.
Now you have found signals of risks and opportunities, the key to lifecycle marketing is to take action pro-actively for each individual customer.We say right action, right time, right customer, every time.The first decision you have to make is whether you follow-up in person or whether you send an e-mail campaign.
If you follow with people it’s important to use their time selectively.
If you send an automated email campaign the key is not to make it sound like a robot. You do this by segmenting your customers depending on their behavior, then customize a campaign.Here are some examples.
Now we understand what is lifecycle marketing and what is involved it’s easier to see why this is a CMO mandate.
We are talking about a new cross-functional business process.
The whole company must align around the customer, but marketing is in a unique position to orchestrate and support this process.It is much like scoring and nurturing and campaigns for leads, but applied to existing users and customers.
Lastly I wanted to leaven you with the impact that lifecycle marketing can have on your organization.