Predictive Marketing

Chapter 12Play Eight: Launch Predictive Programs to Grow Customer Value

In this chapter we cover examples of programs that can grow customer value and revenues after the initial purchase. We cover specific campaigns including post-purchase programs, replenishment and repeat purchase programs, new product introductions, and customer appreciation programs, and we take a look at loyalty programs and omni-channel marketing in the age of predictive analytics.

The Secret to Growing Customer Value

The secret to retaining a customer is to start trying to keep the customer the day you acquire her. As we discussed in Chapter 7, the most important concept in marketing is to “give to get.” This applies both before and after the purchase. The key to creating customer loyalty is to build value for the customer right from the start of the relationship. This means the customer must have a great experience from the very first interaction.

The initial transaction is just the beginning of a long relationship that needs to be nurtured and developed. Engagement with customers should not stop when you convert a prospect into a buyer. If you are able to convert new customers into happy customers, you can expect future upsell and referral revenues. Expansion revenue—done correctly—can be very high-margin revenue because it's typically lower cost to deliver. Referral revenue, too, can be very high margin. Acquiring new customers through referrals is cheaper, faster, and more effective than through ...