Optimizing the customer lifecycle
The intent of marketing optimization is to make each interaction, each transaction, each customer touch deliver the best results it can for brands and for their customers. It should drive marketing activity: creating tailored, personalized content; using IoT & connected devices to improve the in-store experience; collecting omnichannel data; choosing the combination of marketing mix elements that maximize ROI.
At each stage of the customer lifecycle we should be using all of the customer, contextual and transaction data we have to design experiences that will not only bring people back to stores, but increase their value to brands in the long term. Optimization is the difference between sending a generic promotional message to all customers, and creating truly personalized marketing that talks to individual customers.
And of course this individualized, personalized marketing is now expected: 94% of senior-level execs believe it's key to reaching customers and 78% of consumers would return to retailers that personalized offers.
Activate new customers
Personalized programs turn new shoppers into loyal customers by encouraging more frequent visits and faster transactions. This involves sending personalized communications when certain events are triggered, including when customers make purchases or when they are near stores. Customers who visit more often are more likely to become regulars, so we use contextual offers to encourage customers to purchase at least 3 times in the first 8 weeks.
More on personalization for new customers:
Engage existing customers
We give engaged customers relevant cross sell and upsell incentives by using the data we have on their digital and real-world activity. Having this omnichannel data means we can send personalized cross-sell and upsell offers when customers are near or in stores, or when they make purchases. Context-based offers can encourage customers who are already shopping with us to purchase items from a wider range of categories and add extra things to their basket.
More on customer engagement:
- McDonald's boosts sales with IoT-powered customer engagement
- Beyond mobile engagement: closing the loop
Retain loyal & reactivate lapsed customers
We can target lapsed customers with win-back incentives when they're near stores – using context-based offers that encourage them to return and make a purchase within 30 days. We also create and manage loyalty programs that give customers personalized rewards based on individual spend levels, visit frequency or promotion participation. This incentivizes visits and encourages valuable repeat transactions.