Maximizing Long-term Customer Value: By Naras Eechambadi of Quaero / CSG
After three posts on insights for the considered purchases sector, it is fun now to see now how different the discussion is for customer marketing amd B2C. For that, just tune into Naras Eechambadi’s’ article which is next in our Digital Marketing One series for CMOs.
It strikes you that the discussion within B2B (lead management) is all about nurturing clients in leading up to a sale. The discussion in customer marketing is about the long term relationship across many transactions and towards increasing customer value over time.
Though both camps might consider analytics driven marketing “the central hub”.
Read Naras’ article carefully though.
I am amazed how self-evidently Naras includes the ways in which customer marketing has adapted to the 2010s in his writing.
“The first step to decide whether to increase investment in your customer marketing is to measure the value of your customer base and to understand the elements that drive the value. Value can be defined in different ways in different businesses—it could be a revenue or sales measure, a profit or contribution measure or even loyalty or advocacy.”, from Naras’ article.
Hey, Naras says, it is 2011 and no longer do we need to explain nor go on and on that advocacy via social media could influence whether a client should be considered high value to the company or not.
Naras pairs these up with other statements that he takes for granted as a seasoned customer marketer but that make just about any web analyst look like an amateur and makes web analytics software look like a toy.
“Next, segment your customers based on current value as well as potential future value.“
“The best way to measure the return and to conclusively prove the effectiveness of marketing is by holding out a sample (control group) of customers […] The deviation in values over time [between test vs control group], aggregated across the entire customer base, gives you a measure of the value created by customer marketing.”
|Naras is of course not just “somebody” writing about customer marketing but has deep roots in the industry. He is the General Manager of Quaero, a CSG solution. Quaero (a Unica partner of many years) delivers multi-channel marketing solutions that help companies build long-lasting customer relationships and maximize return on investment. Naras is also the author of High Performance Marketing: Bringing Method to the Madness of Marketing (Kaplan Professional Press, 25).|
Check out his contribution to the article series for digital CMOs and chime in with your own comments.