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9 inspiring case studies of Customer Lifetime Value (CLV) 0

Posted on January 15, 2017 by Rob Petersen

customer lifetime value (CLV)

Customer Lifetime Value (CLV) is a prediction of the net profit attributed to the future relationship with a customer.

Peter Drucker said: “The purpose of a business is to create and keep a customer.” Which pretty much sums up the value of Customer Lifetime Value (CLV) .

CLV helps make important business decisions about sales, marketing, product development, and customer support. For example:

  • Marketing: How much should I spend to acquire a customer?
  • Product: How can I offer products and services tailored for my best customers?
  • Customer Support: How much should I spend to service and retain a customer?
  • Sales: What types of customers should sales reps spend the most time on trying to acquire?

To calculate Customer Lifetime Value, here is how to do it.

If you want examples of brands that are making the most of it, here are 9 inspiring case studies of Customer Lifetime Value (CLV).

  1. AMAZON: Consumer Intelligence Research Partners estimates that Amazon Kindle owners spend approximately $1,233 per year buying stuff from Amazon, compared to $790 per year for other customers. So Amazon pays close attention to Customer Lifetime Value (CLV). Amazon Prime has been developed to enable Amazon to efficiently compete on price and to increase customer lifetime value. According to a 2013 study by the Consumer Intelligence Research Partners, Amazon Prime members spend $1,340 annually. And that was 3 year ago. It’s more now. By applying Customer Lifestyle Value (CLV) to the development of Amazon Prime, Amazon knows how to get the most out of their most profitable customer segments.
  2. BONOBOS: Is a leading e-commerce driven men’s apparel brand focused on delivering great fit, a fun approach to style, and superb customer experience. Bonobos has always been a data-driven, customer-focused retailer. With Guideshops, Bonobos has service-oriented e-commerce stores that enable men to try on Bonobos clothing in person before ordering online. Bonobos discovers that Guideshops bring in customers with the highest lifetime value across all of its marketing channels. Insights into which channels are attracting Bonobos’ highest-value shoppers has helped Bonobos increase the predicted lifetime value of its new customers by 20%.
  3. CROCS: has always had a data-driven, customer-centric approach to marketing. When the marketing team is given a mandate to transform Crocs’ online business by becoming less reliant on promotions and discounts, the team is excited by the opportunity to improve Crocs’ profitability. The team tests to optimize promotions aimed at customers who are predicted to churn, and expands programs to coordinate a “no discount” experience across site, email and display for customers with the lowest price sensitivity. Crocs realizes 10X and 2X lift in revenue.
  4. HEAR AND PLAY MUSIC: A provider of music lesson products, uses automated lead nurturing and scoring to turn prospects into customers and repeat customers. Many of the company’s products cost less than $100. With automated messages that have a personalized tone to high value prospect, the company has seen: 1) 416% increase in Customer Lifetime Value, 2) 67% increase in click through rate from the best prospects (increased from 24.73% to 41.28% for subscribers with the highest lead scores) and 3) 18.4% improvement in lead-to-purchase time.
  5. KIMBERLY-CLARK: According to Nielsen, the typical family spends over $1,000 on diapers and baby wipes during the two-and-a-half years their children are in diapers. A Nielsen study was able to quantify the dollar value of key consumer segments, the critical nature of brand selection at various points in the consumer lifecycle and distinct differences in channel choices through key points in the baby care lifecycle.  Kimberly-Clark has a clearer picture of its target market and where its greatest marketing and promotional opportunities exist to extend and expand their market share. “Nielsen’s lifetime.
  6. NETFLIX: An average Netflix subscriber stays on board for 25 months. According to Netflix, the lifetime value of a Netflix customer is $291.25. Netflix knows that customers are impatient and some customers cancel because they don’t like waiting for movies to arrive in the mail. Due to this they’ve added a feature where you can stream movies on the web, which not only satisfies your movie urge, but it keeps you busy while you are waiting. By tracking these stats and behavior, Netflix has reduced their churn to 4%.
  7. STARBUCKS: One of the most effective ways to boost Customer Lifetime Value (CLV) is to increase customer satisfaction. Bain & Co has found a 5% increase in customer satisfaction can increase by 25% to 95%.  The same study shows it costs 6 to 7 times more to acquire a new customer than keep an existing one. Starbucks’ customer satisfaction has been reported as high as 89%. Due to high customer satisfaction, Starbucks’ Customer Lifetime Value has been calculated at $14,099.
  8. U.S. AUTO PARTS:  Realizes the competitive advantage of loyalty and decided to invest. The company debuted the Auto Parts Warehouse loyalty program, known as APW Rewards. U.S. Auto Parts began to leverage capabilities such as increased rewards for high-margin products, personalized post-purchase enrollment offers, a status tier, and triggered email campaigns based off of a person’s repurchase history to maximize customer lifetime value. U.S. Auto parts increased its spend per member by 20%, its repurchase rate by 14%, and its enrollment rate by 45% after updating the loyalty program of its flagship brand,
  9. ZAPPOS: Has found people who regularly return items can be some of your best customers. It says that clients buying its most expensive shoes have a 50% return rate. Placing a priority on Customer Lifetime Value, Zappos has identified their best customers have the highest returns rates. They are also the ones that spend the most money and their most profitable customers. That’s why Zappos has a 365-day returns policy, free two-way shipping and doesn’t charge for returns.

Do the way these companies pay attention to Customer Lifetime Value inspire you with ideas for your company. Do you want to learn more about making the most of out of CLV.

10 best intranet platforms to help any business get more done 1

Posted on January 08, 2017 by Rob Petersen

intranet

Intranet is an internal website that helps employees get more done.

Today’s intranet does this in 5 key ways:

  • Delivers content
  • Is key communication tool
  • Enables collaboration
  • Supports the culture
  • Creates efficiencies for business activities

While an intranet is often associated with large enterprises, the availability of cloud-based solutions mean more companies can benefit from a sophisticated and cost-effective intranet. One that doesn’t require huge IT support, is easily scalable, accessible and from any device.

If this peaks interest on work productivity for your business, here are the 10 best intranet platforms to help any business get more done.

BLOOMFIRE: Is trusted by hundreds of teams and organizations large and small for their secure, internal web portal needs. From training to document sharing to company announcements, Bloomfire makes uploading, authoring, sharing and managing easy and secure. The Bloomfire SaaS web portal solution allows anyone to get a business portal off the ground in just a few minutes.

COMMUNIFIRE: is a modern, fully featured social intranet software that supports your employees and your business. 99% of Communifire Intranet customers are still actively using the platform after 5 years. From connecting your people and streamlining communication to enhancing collaboration and managing content, the full suite of integrated tools helps an organization be more informed, quicker to take action and prepared for tomorrow.

EXO PLATFORM: Is an open-source social-collaboration software designed for enterprises. It is full featured, based on portal standards, extensible and has an amazing design. eXo helps companies connect their employees, customers and developers through social, collaborative and content-driven intranets, websites and dashboards.

IGLOO SOFTWARE: Specializes in social intranets for document management, including version control and commenting on all content types. Community channels for ongoing employee interactions called Spaces can be administered by specific functional group, like HR, sales, or engineering. One of its customers, a wireless company, utilizes 60 spaces, which they call team rooms for various departments and project teams. Igloo Software is a 100% cloud-based platform, and also deploys extranets, external facing communities or a mixed hybrid of public and private areas.

JOSTLE: Makes it easy to inform and connect employees to get more work done. It’s easy to share news, align teams, recognize contributions and invite participation. Engagement rates are reported to be 5X higher than both traditional employee portals and social intranets to help employees get things done. Software runs in the cloud and requires no customization. So you can be up in running in one week.

MY HUB: Is a low-cost intranet solution that provides an out of the box intranet with a range of powerful business tools designed improve internal communications and employee engagement. Such as staff directory, profiles, secure login, mobile friendly, document/file storage, blogs, forums, custom pages.

PODIO: Owned by Citrix Systems, Inc. is a contemporary model for intranets, providing ready-built and build-your-own apps to fill the employee’s workspace. The Employee Network is the common area where interactions in real time in the activity stream provide visibility for employees online. Groups can get creative using the Intranet App Pack, presented as a collection of apps to share documents, host meetings, and track corporate communications. A creative use of Podio is shown by Pilnga, a social games publishing company, that provide access to various assets through their departmental apps, which eliminates emails and streamlines workflow across the company.

SALESFORCE CHATTER: Extends Wave Analytics to channel partners. While Salesforce has had a collaboration offering in their cloud platform — in the form of Chatter — for a good while now, the recent introduction of its Community Cloud product has transformed the company into a versatile and capable new contender in portals, intranets, and social collaboration.

SHAREPOINT: Still the most used platform for intranets, portals, and digital collaboration in medium to large enterprises today, Microsoft SharePoint began life as a document management solution over a decade ago. The new features in its latest incarnation, the brand new SharePoint 2016, show the continued vitality of the platform and it remains the proverbial 800 lb gorilla in the industry.

YAMMER: Used at more than 200,000 organizations today, Yammer is not quite as popular as it once was yet is still quite common to encounter in companies large and small. Yammer has apps like Slack, and though its ecosystem is not as vibrant or large, Yammer makes a good effort to appeal to developers and supports some key open standards. As a workhorse general purpose enterprise social network, Yammer is very capable, but it’s lack of support for specific business use cases or a well-established way for companies to create them, is a growing oversight. Yammer Everywhere is one particularly notable feature that allows the service to be easily embedded elsewhere, in intranets and other internal Web experiences, to make them more social and collaborative. Yammer does have a very good mobile app as well.

Do these platform convince you that an intranet could help your business get more done? Are there any others you would add? Do you need help finding the right intranet solution for your business.

10 best tools for Sentiment Analysis from free to fee 0

Posted on January 02, 2017 by Rob Petersen

Sentiment Analysis

Sentiment Analysis extracts relevant actionable information and “overall” attitude of customers toward specific product, service or topics from unstructured  data without reading thousands of documents manually, thus saving valuable time and resources.

Sentiment Analysis is a key metric in many industries for gauging reaction to a new product or services, identifying major difficulties that customers are experiencing in a product, identifying root causes of quality issues and gaining inputs for marketing campaigns. Many consider Sentiment Analysis an essential element for any company doing Social Media Monitoring.

Is a Sentiment Analysis something that has value for your business? Then, here are the 10 best tools for a Sentiment Analysis from fee to free.

Apache NiFi - Sentiment Analysis

APACHE HADOOP: Is an open source framework for distributed storage and processing of large sets of data on commodity hardware. Hadoop enables businesses to quickly gain insight from massive amounts of structured and unstructured data. A wide variety of companies and organizations use Hadoop for both research and production. Apache NiFi supports powerful and scalable directed graphs of data routing and transformation.

Brandwatch - Sentiment Analysis

BRANDWATCH: Get deep insights into consumer opinion on any topic from across the social web. Brandwatch can deliver a huge amount of data for analysis. Its extensive filters and customizable reports make that data easy to analyze and put to use for marketing campaigns, product research and reputation management. It’s especially good for agencies or businesses with multiple users with different needs.

Cision - Sentiment Analysis

CISION: Monitor conversations across social channels including Twitter, Instagram, Pinterest, YouTube, Google+, Tumblr, Foursquare, and more. Identify performance trends and insights with social media listening. Manage and track your brand’s reputation by exploring what people are saying about your business across a variety of social platforms. Identify leads, gauge the impact of your tactics and determine how you stack up against the competition.

Critical Mention - Sentiment Analysis

CRITICAL MENTION: Analyzes your saved searches so you can gain qualitative and quantitative insight into media coverage. Benchmark against competitors, drill in on stories with negative and positive sentiment, spot themes using word clouds, and visualize density of coverage on maps.

Google Alerts - Sentiment Analysis

GOOGLE ALERTS: Is a free, simple and very useful way to monitor your search queries. I use it to track “content marketing” and get regular email updates on the latest relevant Google results. This is a good starting point for tracking influencers, trends and competitors.

Hootsuite - Sentiment Analysis

HOOTSUITE: A great freemium tool that allows you to manage and measure your social networks. Understand how people feel about your brand and then easily filter results by location, language, and gender—for a multi-dimensional view of your market segments. Hootsuite Insights accesses real-time data from over 100 million sources in 50+ languages across 25+ social networks and other platforms.

`Hortonworks - Sentiment Analysis

HORTONWORKS: Enable an organization to manage all data, data-in-motion and data-at-rest to empower action intelligence for your organization whether the data is in the data center or in cloud. Hortonworks uses Hive to analyze the social sentiment after we have finished collecting our data from Apache NiFi. Meltwater - Sentiment Analysis

MELTWATER: Assess the tone of the commentary as a proxy for brand reputation and uncover new insights that help you understand your target audience. Stay on top of billions of real-time editorial, blog, and social media conversations, and extract the insights you need to understand and drive brand perception for your company.

OpenText - Sentment Analysis

OPEN TEXT: Sentiment Analysis module is a specialized classification engine used to identify and evaluate subjective patterns and expressions of sentiment within textual content. The analysis is performed at the topic, sentence, and document level and is configured to recognize if the opinion expressed within these pieces of content are positive, negative, mixed, or neutral. Combining machine learning with natural language processing techniques, the OpenText Sentiment Analysis module is one of the most powerful engines available out of the box.

Statsoft - Sentiment Analysis

STATSOFT: Sentiment Analysis Solution provides cutting-edge analysis tools allowing innovative businesses to extract meaningful patterns and information through Statistica’s powerful state-of-the-art Statistical Natural Language Processing methods (SNLP).  With Statistica advanced modeling algorithms and massively parallel and in-memory processing, SNLP can be applied easily to large volumes of documents in virtually any databases and repositories to efficiently score large numbers of records.

Sentiment Analysis plays an important role in the measurement of any communication program. Are these tools you would use for Sentiment Analysis? Would you include any others?

Prayer for the new year 0

Posted on December 26, 2016 by Rob Petersen

BarnRaisers

May the new year bring:

  • Friends who understand you and still remain friends
  • Work that has value
  • An understanding heart
  • A sense of humor
  • Time for quiet, silent meditation on the things that really matter
  • Patience to wait for these things
  • Wisdom to recognize when they arrive

– Anonymous Prayer

 

From Rob and all at BarnRaisers, all the best in the coming year.

10 most inspiring digital marketing stories of 2016 4

Posted on December 18, 2016 by Rob Petersen

Digital marketing is an umbrella term for the marketing of products or services using a digital strategy, technologies and tactics that include search, paid advertising, social media and many other properties.

But channels and technologies don’t do justice to the ways some brands are putting it all together.

Here are the 10 most inspiring digital marketing stories of 2016.

  1. ALWAYS: Girls’ confidence takes a nosedive once they hit puberty, Always’ commercial launched an efforts to  help teach confidence to girls and young women through a variety of means. They’ve partnered with TED to create a series of educational videos on confidence that are shared with teachers and students worldwide, and even created the Always Confidence Curriculum, which was unveiled at the Always #LikeAGirl Confidence Summit. Meanwhile, the company continues to push out short, inspiring message via the hashtag #LikeAGirl.
  2. AMERICAN EXPRESS: Open Forum is a collaborative website, on which American Express invites guest authors from a variety of sectors to share their business knowledge and wisdom.  The result of this digital marketing is a content-rich mega-site that’s popular with the search engines – all created without American Express needing to shell out cash to content contributors.
  3. DACIAS: A subsidiary of Renault is one of Europe’s fastest growing car brands. Best known for their functional cars that offer amazing price-to-value ratios, the customer market grew by 60,000 cars in the last three years. By using Facebook’s boosted posts, Dacia placed ads related to their Sandero, Logan, and Stepway models. They focused on both desktop and mobile users. By incorporating data from past activity, the company ensured that a wide variety of ad testing was done, essentially optimizing the advertisement’s impact based on where their customers were in the buying cycle.
  4. DALLAS PETS ALIVE: Renamed shelter dogs after the most searched and trending topics to increase their chances of adoption — with pooches being named everything from Obamacare to Kim Kardashian’s Butt. The push was promoted by a funny online film and a Paid Search campaign. The digital marketing campaign grew traffic to its website by 98% and increased adoptions year-on-year by 200%.
  5. DOMINO’S: Really wants to make it easy to order pizza. The company let customers request delivery of their favorite pizza by tweeting to the @Dominos Twitter account, or by using the hashtag #EasyOrder. The tweet-based order system earned Domino’s media coverage from the likes of USA Today, Forbes, and Good Morning America, not to mention a Titanium Grand Prix award at Cannes. More than 50 percent of Domino’s orders come from digital marketing channels today.
  6. GIRL SCOUTS: Noticed that a lot of customers had issues with finding their nearest Girl Scout Representative when Cookie Season was in full swing. They wanted to drive cookie booth searches on their official website and also boost the number of downloads for their Girl Scout Cookie Finder mobile app. This would not only benefit the organization but also, be a massive help to consumers looking to buy cookies. @GirlScouts used an App Card (showcasing their delicious products) in a Twitter App Install campaign, which easily and conveniently allowed users to download and open the Girl Scout Cookie Finder app from their Twitter account. The result was 19,500+ Twitter-driven app installations.
  7. KRYLON: A spray-paint company, sent “DIY experts” to buy 127 “worthless” items along the route and transform them into something desirable, according to the company. After the yard sale ended, Krylon listed all of its transformed items for sale online, becoming the first brand to use Pinterest’s buyable pin feature. All of the proceeds (roughly $2,000) went to charity.As a result, Krylon’s Pinterest following increased by 4,400 percent, and the company estimates it gained $2.7 million in earned media on a $200,000 budget
  8. PWC: Has managed Oscar balloting for 82 years. For the 2016 awards ceremony, the company sought “to create a modern and savvy campaign” aimed at millennials by using Snapchat “to generate buzz internally and increase external visibility around the firm’s involvement with the Academy Awards,” according to the company. In its first two weeks, PwC’s Snap Story on Snapchat jumped to over 700 views. Within three weeks, the campaign received 1,062 related tweets on Twitter and 406 Instagram mentions.
  9. SPOTIFY: Created a very clever personalized video in December of 2015. They called it ‘A Year in Music, what did your 2015 sound like?’. This message was posted across the companies social channels, along with a generic video supporting that message. It then encouraged users to login to listen and watch their personal video, which was comprised of the users most played and favorite sounds of the year. The benefits for Spotify were that this built elements of customer loyalty, making users feel a little bit special – and it also made a lot of their users login when they may not have planned to previously.
  10. THE WIRECUTTER: Affiliate marketing can be a bit sleazy, but it can generate big results when done properly and genuinely. The Wirecutter has set the standard since its launch just five years ago. Labeling itself a simple “list of the best gadgets—like cameras and TVs—for people who don’t want to take a lot of time figuring out what to get,” the site generated $150 million in e-commerce transactions in 2015.

Do these make your list of best digital marketing stories this year? Are there any others you would add to the list? Do they inspire you to create a digital marketing story for your brand next year?

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    BarnRaisers builds brands with proven relationship principles and ROI. We are a full service digital marketing agency. Our expertise is strategy, search and data-driven results.



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