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Why 11 Facebook Business case studies showed great results 0

Posted on May 15, 2017 by Rob Petersen

facebook business case studies

Millions of businesses, big and small, use the Facebook family of ad services and apps.

  • 4 million businesses advertise on Facebook
  • 75% of all brands on Facebook promote their posts
  • 50% growth in Facebook advertisers from 2015-2016 (source: DMR)

Facts show Facebook Business is big, fast growing and easy for businesses to access.

But, in a situation like this, there are always plenty of losers and winners.

Here are 11 Facebook Business case studies that showed great business results. What makes for success is each brand clearly established a business objective for their ad investment. See for yourself.

  1. ADDIDAS: Wanted to showcase its latest premium athletics Z.N.E Hoodie with a captivating video while also promoting related items. To advertise the collection, adidas uploaded its video creative and product catalog. The product images in the experience were automatically pulled from the product catalog. The ads also featured 4 complementary products beneath the video, such as sweatpants, shoes and accessories. Their campaign had a 43% decrease in cost per conversion and 5.3X return on ad spend.
  2. AIRBNB: Wanted to reach people with its “Live There” campaign—which pointed to Airbnb as an alternative to mass tourism. They developed a Facebook and Instagram campaign that would reach people where they spend a majority of their time: mobile News Feed. Ad creative highlighted the magical experiences that were made possible through Airbnb. For instance, one video showed people watching a sparkling Eiffel Tower from the balcony of their vacation rental, while ad text encouraged others to “Live Here.” Within four month, Airbnb had a: 1) 4-point lift in purchase intent in the UK and India, 2) 6-point lift in purchase intent in Germany and Australia and 3) 125 million people reached.
  3. BAKED NYC: Has one location in Brooklyn and one in Manhattan. The bakery is especially proud of its Oprah-endorsed brownies. Baked NYC wanted to broaden its customer base and encourage people to sign up for its email list. Baked NYC built videos around pre-ordering pies for Thanksgiving using only a $20 tripod, a $15 clamp lamp, a phone and a variety of apps to create stop-motion videos with animated text overlays. Baked NYC targeted baking fans to generate subscriptions to its email list. To reach people most likely to pre-order a pie, Baked NYC ran those ads to those living within a one-mile radius of both its locations.
    Baked NYC’s seasonal campaign, which began on November 9, 2016 and ran until Thanksgiving. It helped reach a local audience, drive qualified people to its website and increase sales of its Thanksgiving pies. It achieved: 1) 40% increase in pie sales, 2) 68% increase in leads and 3) 30% decrease in cost per lead
  4. GENERAL MOTORS ONSTAR: OnStar is a subsidiary of General Motors that provides subscription-based services for emergency, security, guidance, connectivity and vehicle management. The OnStar team wanted to increase sales of its 4G LTE Wi-Fi data plans among owners of General Motors vehicles that are OnStar-enabled. General Motors’ data to create a Custom Audience of people with OnStar-enabled vehicles and segmented them. OnStar also used a “Call Now” call-to-action button for the first time. It received hundreds of phone calls, further proving its ads resonated with GM owners. The advertising effort generated a 2.3% overall sales lift for OnStar’s 4G LTE Wi-Fi data plans and 7.2% sales lift among people who had never used a data plan.
  5. GOPUFF: Is an on-demand delivery service launched in Philadelphia in 2013. goPuff wanted to boost awareness of its app and increase downloads so that it could encourage more people to place an order through its on-demand service. goPuff examined its Audience Insights dashboard to determine the best audience to target with this campaign. The built a series of mobile app install ads, which direct people to the app store where they can immediately download the app. GoPuff drove more app downloads and sales, delivering a 35% increase in app installs, 30% decrease in cost per install and 35% decrease in cost per purchase after download.
  6. MICHAEL KORS: Is an American luxury fashion brand, known for its handbags, ready-to-wear and watches. The company has 780 locations worldwide. The fashion brand wanted to measure the impact that its Facebook ads had on its offline sales. Using link and carousel ads, the fashion brand drove traffic to its physical stores, and then used offline conversions to measure the impact its ads had there. The 4-day September 2016 campaign revealed:1) 33% increase in attributed return on ad spend, 2) 31% increase in attributed transactions and 3) 25% increase in attributed revenue.
  7. OREO’S: Used a business milestone to generate awareness and brand vitality. To celebrate its 100th birthday, Oreo produced 100 Facebook Posts in 100 days that turned trending news stories into “visual treats.”  Oreo garnered over 231 million media impressions from over 2,600 articles. They increased their Facebook fans by over a million and increased their Facebook engagement by 195%. They also increased their share rate by 280% with each post being shared an average of 1,472 times.
  8. PIXELBERRY STUDIOS: Is a gaming studio in Mountain View, California that develops socially-minded games for young people. Pixelberry Studios wanted to increase downloads of Choices among players around the world, particularly among people most likely to pay for additional features. Pixelberry Studios developed mobile app installed ads and optimized its ads for certain app events, including installs and purchases. Optimizing for app events ensures the ad is automatically targeted to the people most likely to take that action. They had a: 1) 2.2X increase in rate of acquiring payers with app event optimization (compared to traditional mobile app install ads), 2) 27% increase in return on ad spend with international targeting (compared to traditional single-country campaigns) and 3) 30% decrease in cost per paying player with international targeting (compared to traditional single-country campaigns).
  9. SHUTTERFLY: Is the market leader in digital personalized photo products and services. To increase sales at Shutterfly.com, the company wanted to provide a high-value offer—a free personalized white ceramic mug—to reach a specific demographic: moms with kids at home. Using Facebook Offers, Shutterfly could distribute a unique, single-use offer code to each person who clicked on its ad. The new Offers feature gave the company better control over how many people redeemed the offer. The 3-day campaign successfully reached Shutterfly’s target demographic and got them excited about the unique mug offer. The campaign also achieved over 16,000 offers saved, over 8,000 purchases and 11X return on ad spend.
  10. SMARTBUYGLASSES: Provides quality designer eyewear online. As an online-only retailer, SmartBuyGlasses continuously aims to grow its revenue. For this month-long campaign, it wanted to increase sales by at least 30%. SmartBuyGlasses decided to segment its ad placements after learning that product ads tended to be more successful in desktop News Feed, and that special offer images featuring people wearing its products were more effective on mobile. The campaign achieved 30% increase in sales, 2X increase in traffic and 35% increase in conversions, year over year.
  11. TREE HUT: Is a maker of hand-made watches, known for its one-of-a-kind, nature-inspired designs with personalized engravings, each handcrafted out of real wood. Tree Hut wanted to boost awareness of its handmade wooden watches and increase online sales by using the data available on its third-party ecommerce platform. Taking advantage of Facebook’s advanced targeting and measurement tools, the company used Shopify’s Facebook pixel integration to install the pixel on its website and advanced targeting to deliver personalized dynamic ads to the right audiences, increasing sales by 4.1X.

Do these Facebook Business case studies help you see how to to use Facebook advertising effectively? Do you need a partner to help your business on Facebook?

7 surefire steps to measure and manage social media success 0

Posted on March 27, 2017 by Rob Petersen

social media success

Social media success is elusive for most companies. 88% of companies use social media for marketing according to eMarketer, but most can’t prove whether it’s working.

  • 43% have a good qualitative sense of the impact but haven’t seen the quantitative sense
  • 42% haven’t been able to show the impact
  • 15% have proven the impact quantitatively (Source: CMO Survey/Business2Community)

What is the way to social media success proof-positive?

Here are 7 surefire steps to measure and manage social media success.

1. START WITH A REAL BUSINESS GOAL

social media success - step 1

More Facebook Likes and Twitter Followers are reasonable expectations if you’re putting resources into social media and creating relevant content. But it’s not a business goal. Because Likes and Followers are commonly referred to as vanity metrics. Improving customer service or getting more qualified leads or increasing sales, these are real business goals. They are also reasonable expectations for social media success. For example, JetBlue uses Twitter to improve customer service. Which makes sense because when consumers are flying, they want quick responses. JetBlue has been ranked highest in customer satisfaction for low-cost air carriers by J.D. Powers for 12 years in a row. They also provide an average 10 minute response time to every tweet. JetBlue has proven social media plays an important role in their business goal of building customer loyalty.

2. IDENTIFY WHO YOU WANT TO ATTRACT

social media success - step 2

With so many social media platforms, it does not make sense to go into every platform in hopes of striking the right audience. Define your target audience, find where they like to interact and influencers who talk about your industry. A good practice is to compile keywords that captures your expertise. Search on social networks for the audience that is also using those keywords or talking about topics your company covers. Remember to keep on top of answering questions and responding to followers with thoughtful responses instead of generic answers.

3. KNOW HOW THEY FIND YOU

social media success - step 3

People like to do business with people they know and, on the internet, that often leads them from social networks to your website. Google Analytics measures Traffic Sources to tell you about visitors from social networks. For example, how many, what social networks they come from and how they compare to other visitors. Every social networks gives you the opportunity to drill down further. Facebook Insights gives a good amount of information on who is looking at and engaging with your page. Yon can see demographic information like the percentage of male and female fans you have and what city they live in. LinkedIn tells you who is reading your articles and viewing your profile. You should determine the social networks that provide the most value and measure regularly to see changes.

4. DETERMINE WHAT CREATES BUSINESS VALUE

social media success - step 4

How do you determine if your efforts in social media are generating business value? Avinash Khausik, Digital Marketing Evangelist at Google, created some interactivity categories: Conversation, Amplification and Applause. Conversation is the number of audience replies or comments. From blog to Instagram, this rate can easily be obtained for virtually every post shared via social media. Amplification is the number of Re-Tweets or Shares per post. This rate is an important measurement because it quantifies the reach of your network. Applause measures your audience’s perception of post quality. While the number of Likes your post receives may not translate into new customers. The applause rate is still an important tool for taking your audience’s pulse. These categories are not mutually exclusive either. A business can do all three but probably does better in some than others.

5. DEFINE ACTIONS YOU WANT THEM TO TAKES

social media success - slide 5

What gets your audience to the desired goal? Do they first subscribe to a newsletter? Register for an event. Request a demo? Take advantage of a trial offer? Or are they ready to buy? Or not? And when? There is likely to be some sequence of events, it’s best to define a number of actions so you can get a better understanding of the customer journey and navigate desired behaviors. It’s is worthwhile for every company to their customer journey.

6. CREATE AN ACTIONABLE SCORECARD

social media success - step 6

 

A framework for social media success is now in place because you’ve established: What is the business goal; who to attract; how they find you; how social media creates business value and what actions you want them to take. It’s time to pick the metrics that matter. They are Key Performance Indicators (KPIs). They are your actionable scorecard for social media success. They are likely to come from a variety of source. For example, if your business goal is to improve customer service, one metric from your customer service team could be number of customer complaints which should decrease as a result of social media efforts. Some metrics might come from your website such as visits from social networks and conversions of desired acti0ns. Of course, some will come from social networks and the progress is building an audience and creating business value.

7. LISTEN TO YOUR DIGITAL ECOSYSTEM

social media success - slide 7

A key component to understand and improve upon social media success is to listen to your digital ecosystem. An ecosystem is a community of interacting living organisms with their environment. This is what you’ve created with your social media efforts. So you need to listen to your audience’s needs. One way is a Sentiment Analysis to understand how your audience feels about your brand and the topics you cover. Another is reviews. Others are to test with different massages and efforts like A/B Testing. Of course, there is no substitute to check your social networks pages regularly for updates in real time and ideas.

Do these steps help you to measure and manage social media success? Does your company need help getting there?

 

8 surprisingly simple steps to calculate ROI 0

Posted on March 20, 2017 by Rob Petersen

roi

ROI (Return on Investment) is the basis from which informed investment decisions are made.

The ROI formula only requires two numbers; the cost of your venture and the return made from that venture. But there are inputs that go into each. For many, this is where the simple gets complicated. But it doesn’t have to be?

Here are 8 surprisingly simple steps to calculate ROI.

STEP #1: START WITH A BASELINE

roi baseline

Return from a new venture has to first take into account what occurred before. So you have to establish a baseline. In our experience, there are only three baseline scenarios. In Scenario #1,  the venture is just beginning so there is no baseline. There is a clean slate. In Scenario #2, the new venture is trying to change just one area of a company’s operations (e.g. digital, call center, human resources). The baseline in this case is the return in this area from prior period. In scenario #3, the venture involves a change or transformation in the company that likely to impact a number of areas. For example, a business generates revenue through a sales force, call center and website. They are investing in digital operations by upgrading the website, building a mobile app and improving the online selling infrastructure so they can spend less in other areas. In this instance, the baseline is the amount the website generates currently based on a total percent of the company’s operations.

STEP #2: DECIDE IF RETURN IS REVENUE OR PROFITS

roi profit or revenue

Be clear at the outset how you will measure the return in dollars. Is it revenue (sales) or profits? The latter in many cases is the most desirable measure. But it is harder to understand and control. For example, a company produces a food product. Profits requires a knowledge of the cost of goods, shipping and retail allowances. These are often hard to know now and harder to predict in the future. Because revenue has more factor within a company’s control, it is generally easier to forecast. While some insist profits is the way to go, in our experience, revenue is also is a good indication of success and basis for decision making.

STEP #3: DETERMINE THE TIME FRAME

ROI time frame

Before you can determine the return, you have to know how long it is going to take. In most cases, the time frame for ROI is between one and two years. This is due to: 1) Functional activities like the time it takes to create and build new assets (e.g. website, data center and buying infrastructure) and 2) customer uptake for awareness, consideration, trial and repeat purchases. To help understand customer uptake, it helps to know the buying frequency and Annual Customer Value (ACV).

STEP #4: DECIDE INPUTS FOR THE RETURN

roi return

The return is a prediction or forecast of what will occur by the end of the time frame. Use real company data, not norms or averages, unless you want normative or average results. Basics that are usually included in returns are how many new vs repeat customers are expected? What is their Annual Customer Value? If there is a digital component, what are visits and conversions rates to the website? If a company transformation is expected, operating costs in other areas that will decline as new capability are built can be a factor. There can be a few to many input. Confidence in the data means reliability in the return.

STEP #5: IDENTIFY THE INVESTMENTS

roi investments

In some cases, this is self-evident. But not always. Let’s say a major investment in infrastructure is occurring that will take a couple of years but the ROI time frame is one year. The investment is based on cash flow and what is spent in that year.

STEP #6: CALCULATE THE ROI

roi calculation

The ROI formula is: Return – Investment/Investment X 100%. The ROI is expressed as a percent. That’s it. Here is the formula and a sample calculation.

STEP #7: GUIDE WITH KPIs

roi & kpis

An ROI is a forecast of a result to occur in the future, a scorecard of key metrics is developed to keep ROI on track. These are Key Performance Indicators or KPIs.  A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. To keep the ROI on track, KPIs are an actionable scorecard. Variables that figure into the return like returning customers, new customers, annual customer value and conversion rate might also be KPIs. Here is what a KPI scorecard looks like for a new digital marketing venture.

STEP #8: ALIGN WITH DESIRED GOALS

roi & goals

ROI is key to evaluating how realistic is the business objective and financial goals for a company. In the ROI calculation above of 238%, the company is expecting a return of $2.38 for every dollar invested. The company has to decide how if realistic this is. It is if the company has the commitment and deliver on their plan and measure success. It probably isn’t if they don’t. But now they have a basis for evaluation. Otherwise, the company is just guessing.

Do these steps to calculate ROI sound simple and sensible to you? Do you need help figuring out ROI at your company?

55 customer experience facts not worth ignoring 0

Posted on January 29, 2017 by Rob Petersen

customer experience

Customer Experience (CX) is the interaction between an organization and a customer over the duration of their relationship.

The quality of the interaction is determined by:

  • Journey the customers has to take
  • Touchpoints of the company with the customer along the way
  • Environment (e.g. in person, digital, phone) in which the customer and the company interact

Customer Experience is measured by the individual’s experience during all the points of contact versus the individual’s expectations.

Much research has been done on signs companies should pay attention to help create awesome customer experiences.

Here are 55 customer experience facts not worth ignoring.

  1. 12 positive experiences are necessary to make up for one unresolved negative experience. (Rudy Newall-Legner)
  2. 6-7 times more expensive to acquire a new customer than it is to keep a current one. (Bain & Co.)
  3. A customer is 4 times more likely to buy from a competitor if the problem is service related vs. price or product related. (Bain & Co.)
  4. Consumers are 2 times more likely to share their bad customer service experiences than they are to talk about positive experiences.  (Global Customer Service Barometer)
  5. Only 1 out of 26 unhappy customers complain. The rest churn. Indifference is the enemy. (Huffington Post)
  6. A one-star increase in Yelp rating leads to a 5-9 percent increase in revenue. (Harvard Business Review)
  7. 91% of customer who had a bad customer experience won’t willing do business with your company again. (Glance)
  8. 89% of consumers who experience poor service with your brand will leave for your competition. (Forrester)
  9. 88% have been influenced by an online customer service review when making a buying decision. (Zendesk)
  10. 85% of customer churn due to poor service was preventable. (Huffington Post)
  11. 83% of consumers require some degree of customer support while making an online purchase. (eConsultancy)
  12. 82% say that getting their issue resolved quickly is the number 1 factor to a great customer experience. (LivePerson)
  13. 81% of companies motivate employees to treat customers fairly, and 65% provide effective tools and training to gain trust with their customers. (Peppers and Rogers Group)
  14. of companies with strong capabilities and competencies for delivering customer experience excellence are outperforming their competition. (Pepper and Rogers Group)
  15. 80% of companies say they deliver “superior” customer service; 8% of people think these same companies deliver “superior” customer service. (Bain & Co.)
  16. 80% of Americans agree that smaller companies place a greater emphasis on customer service than large businesses. (American Express)
  17. 78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience. (American Express)
  18. 75% of customers believe it takes too long to reach a live agent. (Harris Interactive)
  19. 75% of brands do not know what engagement means – but are measuring “it.” (Huffington Post)
  20. 72% of consumers share a positive experience with 6 or more people; 13% of consumers who had a negative experience tell 15 or more people if they’re unhappy. (Huffington Post)
  21. 72% blamed their bad customer service interaction on having to explain their problem to multiple people. (Zendesk)
  22. 71% of visitors expect help within five minutes when purchasing product online. (LivePerson)
  23. 70% of customers whose issues were resolved in their favor say they would return to purchase from that company again (Glance)
  24. 70% of buying experiences are based on how the customer feels they are being treated.  (McKinsey)
  25. 69% attributed their good customer service experience to quick resolution of their problem. (Zendesk)
  26. 67% of consumers site bad experiences as reason for churn. (Huffington Post)
  27. 67% of customer churn is preventable if the customer issue was resolved at the first engagement. (Huffington Post)
  28. 67% of of customers reported hanging up on an automated system out of frustration at not being able to reach a live person. (Glance)
  29. 66% of consumers who switched brands did so because of poor service. (Huffington Post)
  30. 66% of B2B and 52% of B2C customers stopped buying after a bad customer service interaction. (Zendesk)
  31. 62% of organizations view customer experience provided through contact centers as a competitive differentiator. (Deloitte)
  32. 62% of B2B and 42% of B2C customers purchased more after a good customer service experience. (Zendesk)
  33. 61% of consumers age 30-49 are the most frequently angered. (American Express)
  34. 59% would try a new brand or company for a better service experience. (American Express)
  35. 58% of Americans perform online research about the products and services that they are considering purchasing. (Pew Research)
  36. 56% admit to having lost their temper with a customer service professional. (American Express)
  37. 55% of consumers would pay more for a better customer experience. (Salesforce)
  38. 55% of customer requests for service on social media are not acknowledged. (Huffington Post)
  39. 54% of those age 18-29 say they’ve never lost their temper with a service professional. (American Express)
  40. 50% of the time, customer service agents failed to answer their questions according to customers (Harris Interactive)
  41. 45% of US consumers will abandon an online transaction if their questions or concerns are not addressed quickly. (Forrester)
  42. 45% of companies offering web or mobile self-service reported an increase in site traffic and reduced phone inquiries. (CRM Magazine)
  43. 42% of service agents are unable to efficiently resolve customer issues due to disconnected systems, archaic user interfaces, and multiple applications. (Forrester)
  44. 42% of online shoppers said they had contacted a retailer about an online purchase in the last 6 months. (Forrester)
  45. 42% say companies are helpful but don’t do anything extra to keep their business. (American Express)
  46. 41% of consumers expect an e-mail response within six hours. Only 36% of retailers responded that quickly. (Forrester)
  47. 36% of customer service organizations deployed communities in the past 12 months. (Huffington Post)
  48. 33% of consumers would recommend a brand that provides a quick but ineffective response. (Nielsen-McKinsey)
  49. 26% of consumers have experienced being transferred from agent to agent without any resolution of their problem. (Global Customer Service Barometer)
  50. 24% of American adults have posted comments or reviews online about the product or services they buy. (Pew Research)
  51. 22% think companies take their business for granted. (American Express)
  52. 17% of consumers would recommend a brand that provides a slow but effective solution. (Nielsen-McKinsey)
  53. 11% of customer churn good be prevented by simple company outreach. (Huffington Post)
  54. 10% increase in customer retention levels result in a 30% increase in the value of the company. (Bain & Co)
  55. Consumers prefer assistance over the following channels: Phone (61%), email (60%), Live Chat (57%), online knowledge base (51%), “click-to-call” support automation (34%). (eConsultancy)

In addition to these facts in print, below is an infographic with many of these key Customer Experience facts in pictures.

Is an awesome experience worth creating for your customers? Does your business need help improving customer experience?

customer experience infographic

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.

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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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