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

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 with the consumer — purchasing from your brand.

Based on some years of experimentation and measurement, we can share a simplified and highly actionable approach that can make a difference in how you value and grow value among customers. This is the buyer lifecycle.

Mike Ferranti chartProspects: Before They Are Customers
Prospects, of course, come from many places: word of mouth and direct visits to your website and to your retail stores. Advertising and search drives them to on- and off-line points of sale. Prospects can be those who simply signed up on that ever-larger email signup popup on your homepage, or those who put items in a cart and “almost” purchased, but abandoned.

But prospects can also be those who we leverage statistical intelligence to hand-pick. Not just look-alikes but the “buy-alike” prospects with the highest potential value. See my prior column called “The Most Important CRM Metric You Might Be Missing.”

All of these prospects have the same thing in common, they have not purchased, and a level of investment and communications will be required to drive them to the next step. This cannot be overlooked without consequence. Prospects, regardless of the level of engagement or targeting, have a massive, and in some cases, a predictable difference from the buyers you seek to drive incremental sales from — they lack the most powerful signal of all behaviors — actually spending with your brand. Commonsensical enough, perhaps — but the prospect ‘batch and blast’ marketing that pervades retail emailers typically makes the challenge harder. Customer Intelligence is required to target, learn and test your way into viable prospect conversion strategies. We reiterate this point as it is often assumed that prospects, when contacted, will just buy — and they don’t. The bar is higher (see “Bigger is Better: How to Scale Up Customer Acquisition Smarter” for how to target the right customers, and the sophistication your competitors may be leveraging already).

To be sure, an analysis of your prospect base, which in a great many organizations is actually called the “email file” — another issue, in itself ― will help you determine who is likely to buy and who is not. This can be achieved by considering engagement measures, like opening and clicking your emails, visiting the website and micro-conversions. While these behaviors are correlated with the move from prospect to buying, it is not uncommon for the “average” prospect files to contain too many records of individuals who will never buy — they are lookers, not buyers. They may lack the means, intent or occasion to buy — or they may have experienced some change in their lifestage that moved them out of the market for your product. The opportunity is in identifying the highest value prospects and investing more thoughtfully in converting them.

5 Shades of Pop-Up Email Acquisition

As marketers, one of the biggest challenges we face is growing our marketing list at a rate higher than our attrition. On average, companies report an attrition rate of about 20 percent, which means in order to show a growth of just 10 percent per year, we need an actual growth of 30 percent. That’s a lot of growth and yet many of us simply have not developed a concrete plan to achieve this goal

As marketers, one of the biggest challenges we face is growing our marketing list at a rate higher than our attrition. On average, companies report an attrition rate of about 20 percent, which means in order to show a growth of just 10 percent per year, we need an actual growth of 30 percent. That’s a lot of growth and yet many of us simply have not developed a concrete plan to achieve this goal.

In the age of shiny, new objects, we have at our disposal tools, widgets, scripts, and doo-dads all designed to entice, encourage, beg, and withhold in order to garner the most valuable of data: our prospects’ email address. I’ve tried all of these approaches I’ll describe below, either on our site or on a client’s site, and there’s not one right answer. The big question is: Why do pop-ups work?

Most of us swear we hate subscriber pop-ups; they’re annoying; they make us want to leave the site immediately—but is this actually true? Studies show it’s simply not. The web abounds with case studies by companies of all sizes who verify their pop-ups are effective conversion tools and there’s a reason: pop-ups—though annoying—jolt your visitor with a persuasion technique called pattern interrupt. This identifies a situation where something unexpected happens after your brain has become lulled into a rhythm. You can interrupt a pattern with just about any unexpected or sudden display, movement, or response. When you interrupt the visitor, they usually experience momentary confusion, and sometimes even amnesia. This confusion state causes the visitor to become open to suggestion—they become willing to trade this uncomfortable state for clarity offered by another state. Your clear call to action displayed in a pop-up offers them a path to end their confusion.

With that said, and understanding how a pop-up works, you then need to choose the right pop-up approach. You’ll find some pop-ups are better aligned with your business than others, but that knowledge is usually gained through trial and error. If you’re using a CMS site such as WordPress, Joomla, or Drupal, you can test any/all of these approaches simply by installing plug-ins. With HTML, it become more difficult as you sort through different jQuery or JavaScript tools, but it’s not so difficult as to deter you. In the end, pop-ups are a great way to chip away at your pursuit of 30 percent growth.

On-enter Gated
Of all the annoying pop-ups, on-enter gated is the one I personally find the largest deterrent from continuing my engagement with a site. Figure 1 in the media player at right is an example is from JustFab.com, and their pop-up experience begins the moment you land. A pop-up first offers product options you must click through so they can build a profile of your style preferences. With that done, you complete the form shown in figure 1 before being allowed to continue your shopping experience. You cannot dismiss this pop-up without providing the required information. I suffered through this process only to be able to capture this screen shot, but I can tell you I have abandoned every other site that required me to log in to view their content. Similarly, I nearly always abandon a site that allowed me to read part of an article and then withheld the ending until I proffered my email address.

On Enter
For me, pop-ups on enter like the one shown in figure 2, are far less annoying than on-enter gated. These pop-ups might display as soon as you land, after a period of time, or after you begin scrolling. These have a dismiss icon, so you can close the box without providing the information. If you choose this route, you’ll want to do some testing around the ideal time to let pass before displaying. I’ve found giving the reader 15 to 30 seconds to get a taste for the content produces better results. If you ask for their email address before they have determined the value of your site, you may scare them off.

Header (or Footer) Notification
Header or footer notifications are far less intrusive, and thus could prove to be less effective. It’s easy to miss a message displayed at the very top of the page since the visitor’s eye is more typically drawn to the area that usually displays the menu bar. If you choose a header or footer notification like the one shown in figure 3 from infyways.com, try using a heat map to ensure your visitors are even looking at the notice before you decide the effectiveness of this approach.

On Exit
The on-exit pop-up (figure 4), displays automatically as someone makes a move to leave a site. I like these pop-ups because it’s the what-have-I-got-to-lose? approach. Displaying a message after your visitor has already decided to leave your site is a great way to cause them pause and reconsider what they’ve just read. Was it really of no value? Did it have value only today? Did it have long-term value? If so, would they like to be notified of new, similar content?

Scroll-Triggered Pop-up
This pop-up (figure 5) is triggered to display along the bottom edge (configurable) of the visitor’s browser window as they scroll down the page. It will display on any/all pages of the site, so it’s effective even if they’ve clicked a link directly through to a landing page.

A/B Testing and Analytics
There are probably as many approaches as there are businesses and websites, but this list is a good overview. Don’t stop at just installing the form or plug-in, without analytics and careful monitoring, you’re not getting smarter about what works and what doesn’t. If you’ve installed a subscriber pop-up plug-in and you’re not getting sign-ups, first make sure the product is working properly and then check your analytics. Are you actually getting traffic to the page where you’ve included your capturing system? Using a heatmap, are people viewing it? Lastly, these products are not mutually exclusive. Try lots of approaches all at once—that in itself can be the A/B test: which product is most effective on which pages?

Automation
Most of these products will capture your prospects into a database of some sort, but automating the passing of leads into your email system will make the entire process more valuable to you. By passing the data automatically, you can also create instantaneous auto-responders welcoming your new subscriber. While you’re shopping for a product, ensure you check to see if it supports your chosen email-automation platform, and if not, look to see how you can automate this process. We use Zapier and have found we can directly support the client’s application about 90 percent of the time.

For most of us, we have a methodical approach to building a marketing campaign and I think this same approach can be used as a plan for growing your list:

  1. Define a measurable goal
  2. Choose tools you will use for measuring success/failure of the effort
  3. Outline with metrics are important to showing success/failure
  4. Define A/B testing points
  5. Analyze results

If you’ve had success with a particular product, please share your experience in the comments below. I’m always eager to learn about new products that can make me a better marketer—as I’m sure this blog’s readers are as well.

Mail-to-Email Conversions

Most studies agree that your email list will suffer an annual 30 percent attrition rate. If you hope to grow your list by, say, 20 percent a year, added with attrition, you now need a lead generation program that will net you 50 percent new names per year. We are all looking for innovative and creative paths to growing our lists, and our best efforts have consistently included direct mail

Most studies agree that your email list will suffer an annual 30 percent attrition rate. If you hope to grow your list by, say, 20 percent a year, added with attrition, you now need a lead generation program that will net you 50 percent new names per year. We are all looking for innovative and creative paths to growing our lists, and while we’ve published a few eBooks on the topic with myriad fodder, our best efforts have consistently come from those that include direct mail.

As most of you know, renting, purchasing, borrowing and partnering in order to email clients in a lead generation effort is fraught with risks ranging from simply annoying your customers to losing sending privileges through your ESP. Though many claim that a mailbox full of junk mail is akin to an inbox full of spam, the effort it takes to remove oneself from a direct-mail list just seems too burdensome for most of us and we will continue to allow a company to burn through paper and postage despite our complete lack of interest in their message well beyond our initial feelings of annoyance. Whereas with email, the spam button, unsubscribe link or reply email is simply far too easy and thus instills extreme power and often unwarranted indignation when a brand should dare email us any type of unsolicited content. We’re not only quick to unsubscribe, if it happens again, we’re likely to fire off an irate email and even go so far as to report them to their ISP or ESP. This can cause permanent damage to the brand and inhibit their ability to send future emails.

Given these risks, we’ve found that the best way to approach lead generation is through the combined use of print and email. Rather than hazard the acquisition of a list of persons who did not specifically subscribe to receive our messages, Spider Trainers counsels clients to purchase the same list selects as a direct-mail list and forgo the email address—we will collect this later. Direct-mail lists are typically less or even much less costly than an email list, and this cost savings can be applied toward the postage and printing costs of a direct mail.

The direct-mail piece is used to entice engagement through the use of a high-value offer that drives traffic to a targeted squeeze page and, in many cases, from there to a microsite focused either on introducing the brand or introducing the product, depending upon how recognizable the brand is to the audience.

FruitRevival (a company providing recurring fresh-fruit delivery to Denver businesses), is in the process of launching just such a campaign. We created a square postcard (we have found that square postcards have a measurably higher engagement rate) for their list segmented as: newly rented direct-mail names, customers who have purchased a fruit gift box, and customers who have received a fruit gift box. Three different headlines and matching copy provide an A/B testing platform along with a call to action (CTA) for a free sample box delivered to themselves or to a person they choose.

Using this high-value CTA, FruitRevival hopes to attract the postcard recipients to their squeeze page where they will collect their email address as well as responses to five very simple questions. Lead scoring of responses will flag recipients ready for immediate sales follow-up (high scorers), move them into an active nurturing campaign (mid-range scorers), or drop them into the drip campaign (low scorers).

Keep your eye on two big rocks: the higher the value of the gift, the higher the conversion rate, and the more focused your list, the more likely the audience will be receptive to the offer. With the right combination, you can easily far surpass the engagement rates you will get with an email list that has not specifically opted in to your messages.