customer lifetime value

Five ways the financial services sector can increase customer lifetime value

Global investment in fintech startups is skyrocketing, reflecting a worrying trend for established financial services firms.

Customers are increasingly flocking to a new generation of companies that seek to redefine how consumers save and spend money. 

From payments to loans to insurance, established brands are under assault from all directions, but that doesn’t mean they can’t stem the tide, solidify customer relationships and increase customer lifetime value.

CX

What is customer experience management (CEM) and why should you be focusing on it?

It is my job to explain in the simplest terms certain digital marketing phrases that may seem confusing, misappropriated or darn well unwieldy.

Today we’ll be taking a look at the terms customer experience (CX) and customer experience management (CEM), phrases that in our increasingly consumer-focused and connection-based economy have risen to the top of every business’s agenda.

What is customer experience and how do you measure it?

Can you even measure it? Taken at face value, customer experience (CX) seems like a rather intangible term, one that you’d think could only be referred to anecdotally.

“I visited a website, I found what I was looking for, I purchased the item, I received it. All went smooth enough without any kind of hiccup or annoyance.”

You could therefore say I had a good customer experience, but how does a retailer or service provider really know?

We’ve just launched a fantastic series of briefings called Masters of CX which are all free to download and cover a range of topics written by six industry experts. 

My question above however goes right back to basics…

What is customer retention and why do you need it?

They came, they bought, they went away and never came back. 

You’ve driven a customer to your site with an effective paid search campaign, you’ve kept their attention with some beautifully persuasive design and a first class user experience. 

Then by making the checkout as hassle free as possible and by offering them free shipping and a terrific returns policy you’ve given them an exemplary ecommerce experience… Fantastic work! Now you can go home early and watch Adventure Time. 

But wait! How do you encourage your customers to come back? How do you use the goodwill fostered during that first experience into something even more meaningful?

Alright you don’t have to go off and buy a boat together, but it would be great if they popped their head round the door every so often in the future. After all retention costs far less than acquisition and achieving higher customer lifetime value makes your business a much stronger prospect for the future. 

40+ useful statistics from Econsultancy’s Q2 reports

Econsultancy’s expert team of analysts have continued their sterling work this year, and to highlight some of their excellent research I’ve rounded up a load of interesting stats from our Q2 reports.

Yes, I am aware that Q2 ended more than a month ago, but the saying “better late than never” is my guiding principle with this post.

It includes data on customer lifetime value, mobile optimisation, paid search, big data, mobile commerce and the UK’s top digital agencies.

This by no means includes all of the reports published by Econsultancy this year, so head here to explore our full range.

15 ways for companies to increase customer lifetime value

A recent Econsultancy report found that 64% of companies rate customer experience as the best tactic for improving customer lifetime value (CLV), followed by better use of data and personalisation. 

The Customer Lifetime Value: Building Loyalty and Driving Revenue in the Digital Age report shows how companies are measuring CLV, and the tools and tactics used.

Here are 15 ways that companies can provide a better customer experience and therefore increase the lifetime value of their customers.  

How are companies trying to increase customer lifetime value?

Customer lifetime value matters, so how are companies attempting to improve retention rates? 

Our recent Customer Lifetime Value: Building Loyalty and Driving Revenue in the Digital Age report (produced with the help of Sitecore) has one answer: improving customer experience.

The report finds that 64% rate customer experience as the best tactic for improving CLV, followed by better use of data and personalisation. 

Just 42% of companies are able to measure customer lifetime value

For companies looking to improve retention rates, customer lifetime value (CLV) is a crucial concept, but one which companies find hard to measure. 

Econsultancy’s new Building Loyalty and Driving Revenue in the Digital Age report looks at this issue in more detail. 

Having surveyed almost 900 agency and company respondents, we found that, though the vast majority agreed that CLV was an important concept, just 42% said they were able to measure it. 

Here’s a sneak preview of some of the findings of the report produced in partnership with Sitecore.

Companies more focused on acquisition than retention: stats

According to a new report, both companies and agency clients have a greater focus on customer acquisition than retention (44% vs. 16% for companies and 58% vs. 12% for agency clients).

Just 40% of companies and 30% of agencies have an equal focus on acquisition and retention.

The stats, from the Econsultancy/Responsys Cross-Channel Marketing Report 2013 show the difference between where respondents think the focus should be, and where they actually are.

Five things every retailer should know about its customers

We live in an age of Big Data and more and more companies in a wide range of industries are making it a point to collect as much data as they can about markets, transactions, their website’s users and customers.

When it comes to customer data, retailers are a blessed bunch because they have greater opportunities than many to collect this type of data.