Leveraging Predictive Marketing to Unlock Growth Opportunities with Existing Customers
Senior leaders are under constant pressure to grow their organizations – to beat last quarter’s numbers; to grow organizational and stakeholder profitability. Because of this, marketing and sales teams are incentivized to acquire new customers by expanding into new markets, capturing existing opportunities through creating and aligning value propositions with evolving customer demand.
In addition to fueling growth through acquiring new customers, customer retention, gaining additional wallet share, and successful cross-selling and up-selling to the existing customer base can also help to drive significant revenue and corporate growth.
However, technological advancement, increased competition, and lower barriers to entry are shifting the nature and duration of customer loyalty and retention. The requirement for organizations to provide contextual offers and partner with their customers is only getting stronger as markets become more dynamic.
A recent retail industry study by Cardlytics, and analysis by McKinsey & company uncovered some uncomfortable truths. A common assumption is that an organization’s best customers are also the most loyal. However, the data gathered by analytics showed that often a company’s best customers are quite promiscuous. Many customers are spending a significant amount of money with competitors as well. This drives home the importance of understanding more about our customer’s behavior and not operating under the guise of false assumptions. It also reveals a tremendous opportunity to grow revenue by capturing greater wallet share from customers who are already spending money with competitors.
Exciting and emerging new sales and marketing technology are helping sellers and marketers better target prospects with more relevant offers closer to when they’re ready to buy. The power of leveraging predictive analytics for new customer acquisition is increasingly being utilized by organizations. But, there appears to be another significant untapped opportunity for organizations.
If we’ve already figured out how to leverage data, predictive analytics and marketing automation to find and acquire new customers, couldn’t (and shouldn’t) we apply some of the same principles even after they’ve become our customers?
Below are some action items to help consider additional methods for revenue growth and how predictive analytics might assist:
Determine which customers are most profitable and build or augment your loyalty and retention programs around them.
Today, many organizations based their retention efforts around a segment of one, or based on revenue numbers. Leveraging data insights to help define your profitable customers should help to inform your engagement strategy and automate some of the nurturing activities to achieve scale.
Attempt to understand your share of wallet.
Understanding the competitive landscape and aligning your products, services and go-to-market activities around gaining more wallet share can provide meaningful return. By understanding a broader perspective about your customer’s purchase decisions, capturing spend that is already being spent with customers is a quick path to revenue growth. Predictive analytics can potentially assist with when to broach the subject with your existing customers.
Take an intelligent approach to seizing cross-selling and up-selling opportunities.
Leverage what we’ve learned by watching Amazon, LinkedIn and Netflix. Let intelligence guide the initiation process. B2B selling often isn’t quite as easy, but augmenting capabilities with intelligent insights will likely help improve results.
Evaluate loyalty and growth patterns in your data.
Correlate patterns of behavior within customer segments. The data often reveals insightful patterns that we weren’t quite ready to ask. Looking for correlations between customer segments, growth, loyalty and retention patterns may unlock new paths to further growth and engagement.
Consider leveraging emerging marketing capabilities with customers and not just prospects.
Many organizations have created robust lead development and nurturing capabilities for new prospects. Leveraging the processes and technology to help grow existing accounts also holds significant potential, but will require tighter alignment between sales and marketing.
Portions of the blog post above have been taken from the eBook “Accelerating Growth through Customer Retention, Loyalty, and Expansion”. For a full copy of the entire eBook, please click here.
IMAGE CREDIT(S): FITTZER