One-To-One Communication Is Key To Increasing Customer Lifetime Value.
If you understand that customers need different things at different times for different reasons, you have a good chance of realizing greater value from that customer. But that’s only half the battle. The other challenge is to recognize and acknowledge where they are within a lifetime cycle and then communicate with them appropriately.
I read recently that General Motors will shift over half of their $3 Billion annual advertising budget over the next three years to on-line and one-to-one marketing efforts.
Here is what that tells me. They are creating a conversation intended to engage targets on the customer’s terms with the objective of a influencing a lifetime of vehicle purchase decisions.
Sure, they want you to buy that new Chevy today, but with one-to-one communications based on reliable data and understanding of the dynamic you are in and will be in over time, they will have a better opportunity of converting you into a high value/high loyalty customer. Of course, GM has to deliver on whatever brand promise they put forth.
You can apply that to any number of segments. Take for example the “supplemental education services” segment. The National Tutoring Association estimates that there are over 1 million tutors in the United States. Brands that have developed products and individualized instruction have the opportunity to engage parents when their children are still in pre-school and make them customers all the way through helping Johnny boost that SAT score. The key to leveraging that opportunity is informed, one-to-one communication.
Do you know where your customers are in their lifetime value cycle with you? Are you prepared to talk with them individually? If the Nation’s third largest advertiser recognizes the opportunity, then where does that leave you?
I think the future is here.
