Last year, an industry insider said that “all marketing will become direct marketing.” But direct marketing itself is changing rapidly and dramatically as two important trends are influencing the thinking of marketers: Response rates are low and going lower Companies with more individualized messaging are seeing distinctly improved results The figure shows the evolution we… Read More
When we talk to customers and prospects about the challenges they face when marketing to their current customers, the issue that never fails to surface is customer retention. Yet when we press for more details, we are confronted by a paucity of analysis, a struggle to even size the problem, and more often than not,… Read More
What’s your gross margin on a typical first purchase? Is it less than your acquisition cost for a new customer? If your answer is yes (and that’s most companies), you have a one-time buyer problem. Getting the second sale and solidifying a buyer as a profitable customer is one of the toughest jobs in selling…. Read More
Customer lifetime value (CLTV) — The sum of the future money you will get from a customer. Too many companies make the mistake of thinking they can calculate one number for their entire customer population. It’s more useful and accurate to segment a population and then calculate a different CLTV for each segment. This is… Read More
Aberdeen Group has just released a new research report by David White, “Predictive Analytics – Driving Sales with Customer Insights”. I think this is a ‘must-read’ for any marketer struggling to improve revenue. Right off the top I’ll make full disclosure: White’s case study for existing customer marketing describes the work Loyalty Builders is doing… Read More