Next 5-year plan is to maximize spend
Can a service provider offer consistent solutions to get profitable customers in these challenging times? Using the mantra of ‘Profit as a Service’ is what impacts business. But how do you kick start the plan for customer profitability strategy? Can you even make a 5-year plan that will protect, persuade and prospect the next customer?
Have you heard about the Power Law of marketing? It is all about – 20% best customers, 60% revenue, 200% profit. This post offers the basic guidance on catering to the best customers. No matter which business or sector you represent the Power Law can be deployed. It will aid the marketing and advertising teams to come together and serve the customers successfully.
Follow the three points with the aim of profitability at the center.
Protect, persuade and prospecting the next (customer).
Stratify the customers and provide a friction-free experience.
Give the best customers exclusivity, envy, access, security and personalization.
Image courtesy: google images
Create systematic steps for marketing
Collecting all data and unifying it into a CDP.
Using transactional data to calculate lifetime value.
All other data usage to decode the customer genome.
Know in real time when the best customer engages.
Get early signals when they do not engage.
Retain and develop the best customers.
Get exclusive clients to refer others like them.
Nudge others to become like the best customers.
Acquire the next best via Adtech-Martech bridge.
Track changes in future revenue over time.
The above points maximize the spending power of a few customers. What is also interesting is that it is now ‘Profit’ that always drives business. Value has to be given to the market share. Today, the need for combining AdTech + MarTech is equally critical. Its significance is amplified as AI is now entering the scene to accurately target and calculate CLV.
Important Metrics and channel-specific KPIs
A customer or any potential prospect spends money frequently. Tracking KPIs is important to recognize any new behavior. Getting insights on the model customer through the RFM includes genome, data demographic, behavioral patterns and identity across online platforms. They are all finally linked to reward and loyalty programs for them to continue doing business.
With the number of KPIs increasing, it is difficult for any digital marketer to choose which metrics to monitor. If they are channel-specific, the choices are clear and concise for regular monitoring. The motivation for every business move relies on productivity, growth, financial structures and consumer behavior. A company may have to choose between integrated marketing campaigns to include channels like Twitter, LinkedIn, YouTube videos, live events and virtual reality experiences. It will not be easy to have only a few indicators for basic revenue. The metrics need constant monitoring on live dashboards.
Ignoring any metric of the best customer/client can affect business. Hence, your next 5-yrar plan should have systematic steps, KPIs, and CLV at the earliest.