Drive Your Buyer’s Lifecycle, Increase Revenue and Retention

The process of acquiring and sifting traffic into engaged, and ultimately buying, prospects is critical to your customer acquisition efforts. Managing your audience is often referred to as the early stage of the “Customer Journey.” In this post, we’ll focus on the core and most pivotal part of your relationship

Faders need a message with an edge. One edgy brand we’ve worked with used a creative treatment effectively. The message started with, “Was it something we said?” The objective was to break out of “standardized” messaging (that was usually about the product or sale) and ask them to take another look. It worked. Creatives enjoy producing situation-specific creatives that solve problems and capitalize on the opportunity that “Faders” present to the brand.

At-Risk: The Buyer Has Stopped Spending With Your Brand
When your customers fall into what we call the “At-Risk” category, they are statistically most likely to fall into attrition. They have missed multiple purchase windows. “At-Risk” customers can be rescued. Like all other stages in the buyer lifecycle, this is a behavioral view — which means there is behavioral (buying) evidence that those who are “At Risk” can be rescued, and moved all of the way back to “Actives.”

This group responds more to a change in messaging, resting the segment of the file, especially when there is evidence of over-promotion. Changing channels has shown evidence of working, as well. Sometimes marketers are uncomfortable going from an “email only” relationship to a “co-targeted” communication strategy — switching from email to a direct mail piece for a well-thought-out re-engagement touch. It’s proven to be one of the methods that move individuals back to spending “Actives.”

Inactives: Statistically, Most Won’t Buy Again
Inactives are those who have missed numerous likely purchases and have not purchased on cadence or off. They have stopped buying. Inactives rarely convert back to buyers. Oftentimes, the buyer is a one-time buyer who wasn’t the “right customer” for the brand, price point, value proposition and may have engaged in a trial with your brand, but subsequently disengaged (for more on picking the right customers in the first place, see “The Most Important CRM Metric You Might Be Missing”).

Strategies and expectations for the inactive are limited. One simple strategy is to be treated as prospects, because they are statistically not buyers any more.

It is also advisable to rest that segment of your database before re-engaging them. You can also keep the highest value buyers from the Inactives as a holdout in your “Inactive Segment” — and engage in testing of promotions and multi-channel touches.

The most important thing to do with inactives is not to ever get there. So time and effort needs to be invested in strategies to continue growing and renewing customer relationships when their behavior upstream changes and when they miss their first expected purchase.

Become an Active Participant in Your Buyer’s Lifecycle
Buyers are the lifeblood of your business and, as is often the case, a small portion, usually fewer than 25 percent, are driving the majority of your revenue at any point in time. This being the case, it is imperative to have a methodical approach to keep your buyers coming back.

Author: Mike Ferranti

Mike Ferranti is the founder and CEO at Endai Worldwide in New York City. In this blog, he plans to offer ideas and perspective that energize, stimulate and motivate performance through the lens of his nearly 20 years of data, technology and marketing experience. Mike draws upon the logical, cultural and subject matter expertise in digital and data-driven marketing—with an occasional parallel between business performance and athletic performance.

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