IBF Marketing Lifecycle 4. Customer Management Michael Stimson Or: - - PowerPoint PPT Presentation

IBF Marketing Lifecycle

• 4. Customer Management

Michael Stimson Or: What really hacks off your customers?

Build Your Buyer Persona

What are the biggest problems they are trying to solve? What does he or she need most? What information are they typically searching for? What trends are influencing their business or personal success?

Segment Customer Buyer Persona

In a Hotel you might have five buyer personas:

1.

an independent business traveller,

2.

a corporate travel manager,

3.

an event planner,

4.

a vacationing family,

5.

and a couple planning their wedding reception.

When targeting customers, you will need to adapt your messaging to

fit the needs of these different buyer personas.

Customer Demand a Multi-Channel Approach

Source: BtoB magazine: The Emerging Role of E-Commerce in the B2B Customer Journey

Capture Customer Responses

Positive interest Negative response No response Contact me later

Buying Cycle Awareness Blog Posts, Social Media Updates Research eBooks, Webinars, Industry Reports Comparison Case Studies, Demos, Customer Testimonials Purchase Analyst Reports, Detailed Product Information

Map Content to the Buying Cycle

Link social media to your company blog or website. The attention economy: It’s the reality we live in today. It’s a system in which time is our most powerful and scarcest resource.

Tailored Offerings

Sell the right product to the right customer at the right time Personalized, customer-centric experiences Consistent, unified experiences across the Web, branch, and channels Increased operational efficiency and accuracy by allowing customers

to “self-serve” over the Internet

Customer Churn

Companies are offering their customers everything – except what they want.

Reasons Why Clients Stop Buying From You

1% die 3% move away 5% follow a friend or associate’s

advice and change

9% change because they

perceive a better value is available elsewhere

14% change because of product

• r service dissatisfaction

68% of customers leave because they feel unappreciated.

Three categories of churn:

Account churn: Where we have lost the customer completely Product churn: Where the customer has lowered its product profile

e.g. from 5 products to 3 products

Decreased spend: Where the customer has not changed its product

profile but its spending has reduced.

11 Opportunity Areas in Customer Lifecycle

Source - KXEN

Managing (Reducing) Customer Churn

Know ¡

• Understand their business
• Tell them what you can do to help them ¡

Sell ¡

• Manage expectations
• Two way communication
• Social networking ¡

Deliver ¡

• Timely
• Appropriate quality ¡

Engage ¡

• Intimacy
• Quick turnaround ¡

Renew ¡

• Pro active
• Offer better value ¡

Project ¡

• Demonstrate new products, channels,

technology… ¡

Reducing Attrition

Most businesses, invest an enormous amount of time, effort and

expense building that initial customer relationship.

Then they let that relationship go unattended, in some cases even

losing interest as soon as the sale been made.

Or even worse, they abandon the customer as soon as an easily

remedied problem occurs, only to have to spend another small fortune to replace that customer.

Cross-Sell, Up-Sell and Secure Referrals

Selling has only just begun at the time of the initial purchase decision -

virtually everyone is susceptible to buyer’s remorse.

To lock in that sale, and all of the referrals and repeat business that

will flow from it: allay your customers’ fears demonstrate by your actions that you really care.

You should thank them and remind them again why they’ve made the

right decision to deal with you.

Reactivating Dormant Customers

25-60% of your dormant customers will be receptive to your attempts

to regenerate their business if you approach them the right way, with the right offer.

Reactivating customers who already know you and your product is

• ne of the easiest, quickest ways to increase your revenues.

Re-contacting and reminding them of your existence, finding out why

they’re no longer buying, overcoming their objections and demonstrating that you still value and respect them.

Extraordinary Customer Service

Excellence to keep customers so satisfied that they tell others how

well they were treated when doing business with you.

Moving the product or service you deliver into the realm of the

extraordinary by delivering higher than expected levels of service to each and every customer.

Extraordinary service builds fortunes in repeat customers, whereas

poor service will drive your customers to your competition.

a zero-defects and error- free-delivery process dedication to customer satisfaction by every employee providing immediate response no buck passing going above and beyond the call of duty consistent on- time delivery delivering what you promise before AND after the sale recruiting outstanding people to deliver your customer service

Measure lifetime value

There’s a vast difference between the one-off profit you might make on

an average sale, which ignores the bigger picture, and the total aggregate profit your average customer represents over the lifetime of their business relationship with you.

Once you recognise how much combined profit a customer represents

to your business when they purchase from you again and again, over the months, years or decades, you’ll realise the critical importance of taking good care of your customers.

And because you’ll understand just how much time, effort and

expense you can afford to invest in retaining that customer, you’ll be in control of your marketing expenditure.

Retain More Customers: the 80:20 Rule

VIP customers: Predict their needs. Solve their problems. Make their life easier. Save them time Who are your least profitable customers?

• How much time and resources

do they consume?

• Are they more effort than they

are worth?

Who are your core customers, and those that comprise the middle 60%?

• What characteristics do they

have in common?

Who are your top 20% or VIP clients?

• What characteristics do they

have in common?

• What makes them different

from your bottom 20% and your core 60%

A complaint is a gift

96% of dissatisfied customers don’t complain. They just walk away,

and you’ll never know why.

That’s because they often don’t know how to complain, or can’t be

bothered, or are too frightened, or don’t believe it’ll make any difference.

Whilst they may not tell you what’s wrong, they will certainly tell plenty

• f others.

Referral Marketing

Referral Marketing Plan

Set A Target: Set a clear goal with a time line. Example, 10%

increase in referral business over the next 10 weeks.

Timing: Give your clients time to experience your service or product

before asking for a referral.

Top 20: Identify the top 20% that are ecstatic about your business and

ask them for referrals.

Client Network: Make sure their network is the type of client you

want.

Win-Win: Give your clients extra service and follow-up support before

asking for referrals.

Get More Referrals and Grow Your Business

Incentivise your customers to send you referrals Educate your referrers. Help them understand what makes an ideal

client for you. Ask your vendors/partners for personal introductions to their best clients How many referrals does your average customer generate? If the average customer generates one referral, their lifetime value has

doubled.

Ask your clients for referrals on a regular basis Be ready whenever a client unexpectedly tell you how happy they are Thank People for Giving You Referrals

Measure Your Referral Marketing Efforts

Who are my best referral sources? How does my referral conversion rate compare to my overall lead

conversion rate?

What’s the ROI for my referral system? How can I refine my referral system for a greater ROI?

Remember, a referral system won’t take you far if you can’t fulfil your brand promise.

Focus on Customer Satisfaction