It goes without saying that using data to think about your customers has become inescapable in today’s ever-changing landscape. But even with the sheer amount of data available to us today, retailers are still facing the same core challenges they did a decade ago: Acquisition of new customers and retention of existing customers.
The most recent Forrester Wave report lists acquisition and retention as the top two challenges B2C marketers are facing within the next two years:
The goal is to invest marketing dollars in sources that are generating the highest revenue or LTV for customers. By using something like simple data visualization to overlay LTV alongside Average Days until First Order, we can easily spot trends around current acquisition efforts.
This chart also reveals that the pop-up is doing a poor job at converting new subscribers quickly and the subscribers that do convert tend to have a lower LTV. The solution? The pop-up should be re-designed or the incentive being used should be tested alongside others to see if that improves the performance of new customers being acquired through this mechanism. Breaking this down even further, a marketer should be looking closely at their Decile 1 customers:
If you’re not using customer analytics to streamline and optimize your email subscription and new customer acquisition strategies, you may be missing out on revenue opportunities and the chance to enhance the customer experience.
In a follow-up post, we’ll look at additional metrics around acquisition that a marketer should be measuring and tracking to ensure success.
Strategy Director, Client Services