Can Marketers ID a Budding Customer Relationship?

Many marketing departments are shifting from sales conversion to a more balanced relationship focus as their primary objective. As a result, there is increased focus on customer experience and customer loyalty.

customer relationship

Many marketing departments are shifting from sales conversion to a more balanced relationship focus as their primary objective. As a result, there is increased focus on customer experience and customer loyalty.

When it comes to measuring those efforts and related KPIs, however, most marketers are still thinking from a sales conversion perspective. Obviously, this is a problem, because KPIs influence most business decisions.

2 Common Oversights Preventing Proper Customer Relationship Identification

  1. Taking Credit for a Sale and Not a Relationship. Most marketers don’t take credit for the full lifetime value of their new customers. Rather, they are primarily focused on the sales conversion for each campaign. While lifetime value can be multiples larger than the initial sale for subscription type business, it can still provide a 30 to 60 percent increase in ROI for most other businesses. Alternative long-term measures, such as retention or repeat visits, are also helpful — but lack the holistic perspective of LTV. This is because they bifurcate the relationship between new business and repeat business and leave little room to measure brand affinity or experience-driven loyalty among new customers. If your marketing is attuned to relationship building, you should be targeting the right customers who will derive long-term value from your brand, and LTV allows you to take full credit for attracting the right customer. More important than getting the full credit for a new customer, however, is the change in perspective that a focus on relationship value will drive. Making lifetime value a component of your KPIs forces employees to think more about the types of customers they want and makes terms like engagement, relevance and brand affinity more than aspirational concepts.
  2. Failing to Measure the Value of Engaging Content. Many companies generate good engagement content, such as brand messaging, product info, newsletters, free apps etc. However, many do not take proper credit for it. Often, marketers treat this content as the first stage in a line of interactions leading to an eventual sales conversion, and it becomes lost in a multitouch attribution model. While sales attribution is important, it is also important to understand if the content fulfilled its immediate purpose. Assume you are an online clothier and you create a style guide to help customers understand versatile ways to wear your product. You’re tracking who downloads the guide and who shares the guide on social media, and then the information is used to segment these customers from those who are potentially less engaged. While this content did not necessarily lead to a direct sale, it did have tremendous value in conveying buying intent, brand affinity or even product preferences. Not all content is designed to drive immediate sales, but it should be designed to drive a specific set of behaviors, which should be measured and valued.

Bear with me as I pontificate for a moment. I am not a believer in over-measuring, but I do believe in purposeful measurement. I believe what you measure reflects the ambition and objective of what you plan to achieve. While not all relationship-focused activities can be easily measured, such as a caring customer interaction, in a digital world the customer’s behavioral response often can. Merely measuring the final behavior of a good relationship — repeat sales — is just too late in the experience journey and that seems to be what most companies are still doing today, despite their desire to build better relationships with their customers.

Author: Shiv Gupta

Shiv Gupta is a principal at Quantum Sight LLC. He helps clients develop data, analytics and digital technology strategies to drive compelling relationships with customers. In this blog, he'll discuss ways in which marketing organizations can regain their strategic bearings and leverage their tech stack for both short-term and long-term gains. Reach him at

Leave a Reply

Your email address will not be published. Required fields are marked *