According to a Gartner statistic, up to 80% of a business’s future revenue comes from 20% of its existing customers. In fact, the success of a business depends on strengthening the loyal customer file and increasing their satisfaction. With the mission of bringing expertise’s point of view in order to help businesses optimize their Customer Life Cycle (CLC), last March, JobHopin and CleverTap jointly organized an event called “Scale Up Your Customer Lifetime Value: Exclusive Framework for Growth”. The event welcomed 5 expert guests in the field of growth marketing: Ms. Mai Vo (CleverTap), Ms. Ruby Hoang (Cho Tot), Mr. Tran Nguyen Phi Long (PNJ), Mr. Bui Quang Huy (Marketing expert), Mr. and Mr. Bui Quang Tinh Tu (JobHopin, Digikigai).
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Enhancing customer life cycle is one of the most important things to a business
Customer segmentation based on collected data
The key to customer segmentation is the data being systematically organized. According to Ms. Mai Vo (Territory Sales Manager CleverTap), data can be divided into 2 main categories: user profile and user event.
Knowing customer basic information such as their name, age, location,… is crucial but their actions such as their last time purchasing an item or their tendency of shopping is also needed to take into consideration. From that, business can predict customer’s future behaviors. With the help of data analysis technologies, companies can understand customer insight and come up with appropriate business strategies.
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Why do customers still choose to “let go”?
According to MR. Bui Quang Huy, a lot of businesses have to face enormous additional costs to maintain these “mega-promotions”. However, when the promotions end, so does the relationship between the customers and the providers. And if you cannot find proper ways to deal with this, it may hurts all your efforts on enhancing customer life cycle.
Enormous additional cost is a pain-point but seemingly useless of business
According to Statista’s statistics, after the first month, only about 6.5% of users continue to use the product, and after the next month, only about 4.5% of users stay. Therefore, choosing the form of promotion is very important. The actual financial capabilities of the business should be reflected transparently and the needs of customers should be met. Smart promotion selection is also a good move to keep the old customers.
Timing is very important in providing services. Human emotions are quite complex. Therefore, their decisions and interests will not stay the same at all times. It is a business’s mission to catch the right moment and deliver what the customers really want. With the help of technology, companies can improve their customers’ personal experience and increase their satisfaction rate.
Customer being “bombarded” by the business
Consumers are constantly feeling like they are being attacked by the services of some brands, and this can killed your improving customer life cycle plan. On occasion, pushing engagement into customers’ faces is not always a good idea because customers do not necessarily have needs to. Many of them even feel that their privacy is violated.
Therefore, how much interaction is enough? Ms. Ruby Hoang identified that businesses need to divide their customer groups into smaller pieces (segmentation). As a consequence, the data that has been collected will be analyzed more thoroughly and comprehensively. Then, companies can send a message, email, or any campaign details to the right subject. In order to achieve that, businesses can apply tools and software to help customize messages with different customer groups (personalization), analyze user behavior (behavioral analytics), or experiment with diverse content forms to find the most effective formula (A|B testing).
Don’t “attack” your customers!
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Elevate Customer Life Cycle
Following Semrush statistics, a long-term customer will spend 67% more than their first purchase. Therefore, besides focusing on finding new customers, Mr. Tran Phi Long emphasized: businesses need to focus on maintaining relationships with existing customer files, investing in space, data, budget, and resources to give them the best experience.
Delivering constantly new and innovative services is an effective way to improve CLC. Thereby, contributing to helping businesses create usage habits for customers. Some applications also integrate many services in one, convenient for enhancing the connection between customers and businesses.
Delivering constantly new and innovative services is an effective way to improve CLC
Customer life cycle is a sustainable, long-term value for companies in any industry group. Choosing the right way to capture, track and take care of customers will help your business achieve success to the fullest.
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The JobHopin Team