DIGITAL MEDIA GHOST
  • Publication
  • #GhostsWriteIt Spotlight
    • Writer Spotlight Submission
  • Services
    • Digital Strategy
      • Content Marketing
      • Law Firm Marketing
      • Social Media Management
    • Ghostwriting
    • Public Relations
      • Social Sabotage & Online Privacy
        • Social Media Policy Template
  • About
  • Publication
  • #GhostsWriteIt Spotlight
    • Writer Spotlight Submission
  • Services
    • Digital Strategy
      • Content Marketing
      • Law Firm Marketing
      • Social Media Management
    • Ghostwriting
    • Public Relations
      • Social Sabotage & Online Privacy
        • Social Media Policy Template
  • About
Search

How to use CLV to Create Killer Digital Marketing Campaigns

3/12/2018

0 Comments

 
Picture
by Ryan Del Villar,  Guest Contributor

CLV or Customer Lifetime Value is a gravely underused metric in Marketing, which is surprising given the value it can bring.

The metric measures the profit that any single customer brings to your businesses. It then enables you to focus and tailor your marketing efforts to nurture and retain their loyalty.
​
​





Customer Lifetime Value (CLV) is an underused Marketing metric. Find out how to use it!



Statistics show that repeat customers spend approximately 67% more than new ones. Furthermore, acquiring new customers can cost up to five times more. This therefore shows how important it is for businesses to get to grips with their CLV and proactively use it for marketing.

To understand how to work out your CLV, check out this great infographic by Kissmetrics.

Once you have your CLV, it’s time to start making it work for your business and apply it to your digital marketing campaigns. To help, we’ve put together the following guide to show how you can use CLV to create killer digital marketing campaigns.

Step 1: Segment your customers
When you have your CLV and know who your most valuable customers are, it’s time to segment your audience. Create three or four categories to separate the customers into. For example you could create the following groups:

  • Customers who spend £500 per year
  • Customers who spend £250 per year
  • Customers who spend £100 or under per year

Splitting your customers down like this will help you to establish where the marketing budget is best spent. It will also help you to target your efforts much more effectively.

Step 2: Focus your campaigns and market to your existing customers
Instead of coming up with a lead generation campaign for new business, focus on your existing customers. Specifically, the ones in that top category that bring the most profit to your business.

Focus on how you can encourage those valuable customers to make their next purchase with you, whether it’s triggering their memory or offering a specific discount.

Step 3: Develop a strategy
To ensure you take advantage of your CLV and see a great ROI, it’s crucial that you have a plan. Don’t just wing it and see how it goes. Yes, to an extent, marketing is about trial and error but if you have no plan at all, you’re setting yourself up for a lot of ‘errors.’

So, get the team together and discuss your approach. How are you going to target your key customers? How are you going to encourage them increase their yearly spend with you?

Here’s a handy guide on developing a creative marketing plan which will help ensure you’ve considered each element and have a strategy to move forward with.

When building your plan, it’s also important to focus on the means you’ll use to attract those high value customers. Here’s a roundup.

Email marketing
This is one of the most direct approaches you can take and, when executed well, it can really pay off. However, consumers are bombarded with countless emails everyday which are either marked as spam or deleted. So, you have to stand out.

You have to remember that you have the added advantage of already selling or providing a service to that person. Email subscribers are therefore familiar with your brand, making it easier for you to communicate.

It’s important that you take advantage of this and really tailor your email to suit them. Get personal and share something that is of value to that individual.

Runkeeper.com subscriber emails are a great example of this. The fitness app uses email to motivate users to get out and go running. They actively encourage people to stay fit and show a vested interest in their health.

The emails also congratulate users when personal goals or milestones are reached. Their emails are therefore both personal and useful. This provides value to users, meaning they’re less likely to hit that unsubscribe button.

If you are going to use email marketing, just make sure that you’re 100% clear on the new GDPR regulations which are being introduced this April.

Loyalty schemes
We’ve all got a stamp card for the local coffee shop or Nando’s lying around somewhere. “Buy 9 hot drinks and get your 10th free”... you know the drill. Loyalty schemes span far further a good old stamp card though and can be applied to your digital marketing efforts.

Here’s a few popular types of loyalty schemes:
  • Refer a friend
  • Fee based loyalty scheme
  • Points system
  • Tiered reward system
  • Cash back system

Take Esther & Co for example. They run a successful tiered loyalty scheme which is based on customers signing up, purchasing and referring. The clothing brand has also harnessed the power of Instagram and awards 25 loyalty points per post. By using these ‘micro-referrals’ the brand is keeping its marketing budget low whilst growing its audience.

Combining social media with your loyalty scheme could work wonders. Not only are you engaging with your existing customers, you will simultaneously grow your audience through authentic user generated content.

A smartphone app
Apps offer a direct route to your target audience. It presents the chance to not only have a place on a user’s phone but to also send push notifications.

Do remember, however, that this market is extremely crowded. Therefore, your app must offer real value and stand out from the competition for people to even consider downloading it.

Push notifications are another entity which must also be carefully thought out. How many times have you deleted an app because of annoying notifications? People can also very easily disable them - so you have to show value.

By downloading the app, users are already interested in your product. So, be sure to carefully craft push notifications that are going to be relevant and of interest to them. Think about your audience segments based on your CLV and consider what your customers want to see. An offer for their loyalty? Maybe an area based discount? Just be sure to keep them relevant and always offer value.

ASOS aced this by creating the ideal place for customers to shop through their app. It’s slick and makes purchasing simple. In their own words, by downloading the app:

“you’ll have 850+ brands in your pocket, with free delivery and easy returns – heaven, right? a card scanner does all the hard work at checkout and we’ll send you sales alerts...Best (free) investment ever.”

They’ve aimed this so well at their target market and offered convenience and value (free). Which savvy ASOS shopper wouldn’t want this?

So, when designing an app and strategy for it, take a leaf out of the e-commerce giant’s book and give real tangible reasons why your customers should download the app. Then continue to interact and offer value with relevant push notifications.

Social media
Social media is perfect for building relationships, which is key when it comes to using CLV. Building a rapport with your customers can have a real impact on their decision to shop with you.

Showing your brand has personality and that you make time to engage with people can do wonders for business.

Take GoPro for example, they get the power of social media and use it well. The camera brand encourages customers to send in their own shots and videos and shares them with their wider audience. This form of user generated content not only shows that they care about customers but also endorses the brand.

Conclusion
When you understand CLV and put it to good use, it can have an impressive impact on your digital marketing efforts. Your time will no longer be spent strategising and spending on attracting new leads and enquiries which may not even convert. Instead, you’ll nurture those who already see value in your brand and are more likely to spend.

Author Bio:

Ryan is a Digital Marketing Specialist at the Bradford based Digital Agency Harrison Mann. Being in the digital marketing field for 7 years now, he enjoys keeping up to date with the latest in all things digital and search. As a silent type, Ryan expresses plenty of his thoughts through writing.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Picture
    Become a Ghostwriter!
    Picture
    Contribute to DMG
    Picture
    BECOME A GUEST CONTRIBUTOR
    Picture
    PROMOTE YOUR BUSINESS BY GUEST POSTING
    Picture
    ARE YOU A GHOSTWRITER? WE WANT TO KNOW!
    Picture
    DO YOU HAVE A GHOSTWRITING BUSINESS?

    RSS Feed

    Categories

    All
    Agency Spotlight
    Business
    Digital Marketing
    Ghost In A Flash
    Ghostwriting
    Media Relations
    Privacy Concerns
    Social Sabotage
    Technology
    Writer Spotlight
    Writing

    Advertising Disclaimer

    Archives

    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    May 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012

Find your domain and create your site at Weebly.com!
Digital Media Strategy
Content Marketing
Law Firm Marketing
Search Engine Optimization
Social Media Marketing
eBooks
Writing
Becoming a Ghostwriter
Blogging
Content Marketing
Ghostwriting Services
Guest Post Guidelines
Media Relations
Online Crisis Management
Personal Brand
Public Relations
Reputation Management
About
Our Team
Our Results
Testimonials
Contact Us
Locations:
New Orleans, LA
Nashville, TN

DMG University
Privacy Policy | Terms & Conditions | Cookie Policy
Digital Media Ghost  @2020
  • Publication
  • #GhostsWriteIt Spotlight
    • Writer Spotlight Submission
  • Services
    • Digital Strategy
      • Content Marketing
      • Law Firm Marketing
      • Social Media Management
    • Ghostwriting
    • Public Relations
      • Social Sabotage & Online Privacy
        • Social Media Policy Template
  • About