Marketing Truths

Use database analytics to drive your marketing planning.

A simple RFM (Recency/Frequency/Monetary) analysis can tell you which customers are buying, how often and how much money they are spending. Leverage RFM to drive your marketing decisions and your audience selection criteria for offline and online campaigns. On the back end, demonstrate your success with an ROI analysis.

Your most profitable source of additional revenue is within.

Focus on retaining and growing the value of your better customers before adding new ones. This is especially true when you consider 80% of sales typically come from 20% of the customers.

It is more cost efficient to keep and grow your current customers than to acquire new ones.

Know the worth of your customers and spend proportionately to retain and grow their value to your company.

Don’t overspend to keep marginal customers – resulting in a net loss. The opposite is also true. Identify what you can spend to keep your better customers while maintaining their profitability to your company.

Don’t forget your inactive customers!

Your inactive customers once valued your product or service and it may be easy to unlock reasons they left. Was it the competition or poor customer service? Perhaps it was it a change in your value proposition or pricing? Consider conducting an online survey, then deploy a win-back marketing campaign to re-engage or activate them to drive incremental revenue.

Prepare for test-and-roll-out success.

A call to action generating an inquiry vs. a sale can strain back-end operations. Factor in important variables such as additional training for inbound sales agents to handle increased call volume impact. If you have concerns, stagger your advertising over longer time frames to ensure your call center and sales staff can manage the volume.