It’s a known fact that customer retention is actually more cost-effective than gaining new customers. A recent study by Harvard Business School showed how an increase in customer retention rates of just 5 percent can result in a profit increase of 25 to 95 percent. So how do you keep customers coming back? This week’s CMO Perspectives answers this question, and there are many interesting strategies to mull over: from optimizing your web site for mobile, to increasing a customer’s initial purchase size, to effectively using IoT data to gain actionable insights.
We hope you enjoy these articles. Let us know your thoughts by commenting below, or reach out on Twitter: @NICE_Enterprise.
5 Differences Between a Marketing Department Head and a CMO [kenthuffman.com/blog]
In this excellent article, author Kent Huffman stresses the difference between a head of marketing and a CMO. While the two titles appear synonymous at first, a CMO is in fact much more: He or she is a business leader. Here are five differentiators, according to Huffman, that make you a true CMO.
First, strategic leadership - CMOs balance creativity with hard financial data and marketing analytics. Second, as business leaders, CMOs must earn their seat at the revenue table with other C-level executives and board members. Third, focus on the customer: High-growth companies are significantly more likely to incorporate customer satisfaction metrics into their marketing executive’s compensation formula. Fourth, innovation and fifth, continuous improvement: The effective CMO is continually focused on the journey from good to great.
Top 5 trends in digital media for 2015 [techgenmag.com]
Author Juli Piscedda lays out the five top trends for digital media in 2015 (five must be our lucky number this week...)
First, she writes, the world is going mobile, especially Millennials. One billion people use mobile devices as their primary connection to the Internet. That means every company web site will have to be not just mobile-friendly, but optimized for mobile.
Second, the future of advertising is now “pretargeting.” That means anticipating a consumer’s purchasing habits based on the collection and analysis of their digital footprint.
Third, consumers are creating their own professional and sophisticated content. How can companies harness consumer-generated content?
Fourth, the Internet of Things (IoT) and wearables means that more of everything we use is connected to the Internet, providing businesses with access to mountains of data. Finally, it’s not enough to collect the data. Companies will increasingly convert it into actionable insights.
Customer experience is meant to be evocative, not reactive [networkingexchangeblog.att.com]
Investing in customer retention is a far more cost-effective strategy than customer acquisition, says author Brian Solis. A recent study found that nine out of ten consumers say a company’s customer service has a significant impact on their decision to do business with it. Additionally, the majority of American consumers (74 percent) rate the customer service they’ve received in the last year below an “A” grade.
The problem is that customer service and support are functions that are still viewed and run as cost-centers and not as strategic investments in customer experiences. Contact centers are one place where there is a lot of room for improvement, and Solis promises to address this in his next article.
5 Ways to Keep Customers Coming Back [smallbusinesscomputing.com]
Creating strong customer loyalty is one of the best things you can do for your business. According to a report from the Harvard Business School, an increase in customer retention rates of just 5 percent will result in a profit increase of 25 to 95 percent.
The author, J.T. Ripton, offers several customer retention tips for small businesses. These include staying in touch with your customers, giving customers a more personal experience and keeping your web site interesting and fresh.
One very interesting piece of advice is to encourage bigger initial purchases. According to analytics company, SumAll, the chance of a customer coming back relates directly to the amount of money he or she spends on the first purchase.
There are several more excellent tips in the article, so read on!
We hope you enjoyed our picks and bookmarked a few articles for future reference. Please don’t forget to share with other CMOs.
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