TP-Customer Toolbox (Part 3)
Part 3 of the explanation of our #workingmodel is all about #campaigns. From lead generation to the customer phase and a possible win-back.
Today we are moving into the heart of the #toolbox, because without campaigns we cannot guide the customer and provide the necessary impetus. To start with, we are less concerned with acquiring customers. The aim must be to acquire and develop the "right" customers.
Because of the new tools, everyone is talking about how it is now easier to realise 1to1 campaigns, i.e. to tailor them to the needs of customers, but not much has really changed in 20 years. In Part 2, I already wrote about the customer life cycle and customer value.
Which campaigns for which customer phase?
Let's take a rough look at which campaigns come into question and which topics are in the foreground, which is illustrated in the next graphic.
In "acquisition" we have the possibility to generate wild prospects/leads or we clone our best customers, i.e. we analyse our good customers, form a persona or groups and see where such potentials are available (for B2B perhaps in LinkedIn / for B2C perhaps social media channels, address brokers, portals and/or acquisition partnerships/cooperations).
There are many ways to build customer databases without a lot of budget.
For the "growth" of the customer there is cross-selling, up-selling or simply introducing new products.
In the "customer loyalty" phase, there are concepts for expanding customer service (VIP) or individualised rewards.
The "securing customers" phase is a challenge in itself. Many customers leave because of poor service or simply disregard. The occasional goodie can work wonders.
The "win back" phase is challenging because you have to listen to customers about why they left. There are studies that say you can win back up to 20% of customers. But it doesn't always make sense. Paying attention to customer value is one strategy, but please also keep an eye on the relationship between these customers and other customers. A student is a bad customer, parents are good customers. Client company is a spin-off of a group...
Typical examples of campaigns in the customer phases
Here are some definitions and a BT2 and B2C case each of how companies solve this.
Customer acquisition:
#Social media marketing: New customers can be reached through targeted advertising and organic content on platforms such as Facebook, Instagram and LinkedIn.
#Search engine marketing (SEM): Paid adverts in search engines such as Google can be used to reach potential customers who are searching for relevant products or services.
#Content marketing: Creating high-quality, relevant content such as blog posts, videos or infographics can help to generate interest and attract potential customers.
#NestléProfessional (Switzerland): Nestlé Professional has successfully used social media marketing, particularly on platforms such as LinkedIn and Xing, to target new business customers and promote their solutions for the catering and food industry.
#Casper: The mattress brand Casper has used social media marketing effectively, especially on platforms such as Instagram and Facebook, to reach new customers. Through engaging content and targeted adverts, they were able to reach their target audience and generate interest.
First purchase:
#Welcome offers: Discounts or special offers for first-time customers can incentivise them to buy for the first time.
#Cross-promotion: By placing products or services that complement each other well, the first-time buyer can be encouraged to buy more.
#Referral programmes: Rewards for customers who get friends or family to buy as well can encourage first-time purchases.
#SwissInternationalAirLines (SWISS): SWISS offers first-time customers customised business travel solutions and packages to encourage them to start booking airline tickets and ancillary services.
#Apple: Apple uses cross-promotion very skilfully by designing products such as iPhones, iPads and MacBooks to work seamlessly together. Customers who buy an Apple product are often encouraged to buy other products in the same ecosystem.
Up-selling:
#Personalised recommendations: Based on previous purchase behaviour, individualised product suggestions can be made that include an upgrade or extension of the original purchase.
Bundles and packages: Offering packages or bundles that are an upgrade over the original purchase can encourage the customer to spend more.
#Exclusive offers: Offers for exclusive products or services that are only available to existing customers can help encourage upselling.
#NespressoProfessional (Switzerland): Nespresso Professional encourages up-selling by providing options for additional coffee machines and coffee products for their business customers to enhance their coffee enjoyment.
#Netflix: Netflix uses personalised recommendations very effectively to suggest additional content to its subscribers that matches their preferences. These personalised recommendations can lead to subscribers upgrading to a more expensive subscription model to gain access to more content.
Cross-selling:
#Customer reviews: Placing products or services purchased by other customers in conjunction with the product they have already bought can encourage cross-selling.
#Complementary products: Recommending products or services that go well with the product already purchased can encourage the customer to buy more.
#Retargeting campaigns: Targeted advertising for complementary products or services can encourage customers to make additional purchases.
#UBS (Switzerland): UBS utilises cross-selling by offering complementary financial services and products such as wealth management, investment advice and corporate finance to its business customers.
#IKEA: IKEA encourages cross-selling by displaying complementary products such as matching furniture and decorations alongside main products in their shops and online shops.
Repurchase:
#Customer loyalty: Providing outstanding customer service and nurturing customer relationships can increase the likelihood that customers will buy again.
#Loyalty programmes: Rewards for repeat purchases, such as loyalty points or exclusive offers, can encourage customers to buy again.
#Personalised communication: Providing personalised offers or recommendations based on previous purchasing behaviour can encourage repeat purchases.
#Nestlé (Switzerland): Nestlé runs a successful loyalty programme for its business customers, providing access to exclusive training, product innovation and marketing support to build their loyalty and encourage repurchase.
#Nike: Nike runs a successful loyalty programme called NikePlus, which provides members with exclusive offers, personalised recommendations and early access to new products.
After customer churn:
Reactivation offers: Offers or discounts that encourage former customers to return and buy again.
Surveys and feedback: Gathering feedback from churned customers can help to understand the reasons for their churn and take appropriate action to win them back.
#Targeted advertising: Targeted advertising and marketing campaigns can be used to reach churned customers to get them interested in interacting with the company again.
Of course, here are some examples of brands that have implemented successful marketing strategies for the above areas:
#ABB (Switzerland): ABB uses reactivation offers by offering former business customers special discounts and deals on their industrial products and solutions to encourage them to return to their company.
#Spotify: Spotify offers former premium subscribers special offers and discounts to encourage them to return to a paying subscription.
Customer acquisition cost money
You won't like to hear this, but our #clients are losing far too much money here today that could be invested in customers and customer loyalty.
Those of you who run campaigns know the costs per contact. These can quickly amount to 1.5 - 2 CHF/EUR for a paper mailing and we have to be prepared for the fact that a new customer can quickly cost several thousand CHF/EUR.
The worse you have your acquisition process under control, the more likely you are to pay far too much per new customer.
Experience shows that you can get an existing customer to buy again for a fifth of the cost (20%). Even customers who have churned can be won back more cheaply (50%), so always keep an eye on acquisition and monitor the costs of your campaigns.
The values can be even worse in #B2BMarketing. Anyone still relying on Google and Adwords campaigns today should be warned.
Our #toolbox is a matrix and allows you to allocate the individual marketing campaigns depending on the customer phase and also to take the corresponding channels into account.
If you have any questions, please contact us. I will come back to the topic of "customer experience" in the next part.
Enjoy reading
TP/Winkel Martin Lange 4/2024