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Using Behavioral Marketing to Maximize Customer Lifetime Value

Despite understanding the importance of behavioral marketing, today most marketing is based on siloed, narrow views of each customer. In the interest of saving time and resources many marketers are optimizing messaging based on a small range of actions and behaviors – or, in most cases, based on mere demographic info (such as age, gender, or geographic location) that only offers one aspect of who each customer really is. While this kind of optimization certainly allows for broader acquisition efforts – and, in fact, marketers today are still allocating most of their resources towards acquisition – it doesn’t allow for a truly complete and accurate picture of each customer, something that customers appreciate when it’s present. A study by Adroit Digital revealed that 60% of customers notice when ads are personalized, and 89% of those customers respond neutrally or positively to that personalization.

If you’re not engaging each customer in the way that’s most relevant to their unique needs, you’re missing out on countless opportunities for targeted engagement and maximizing each customer’s lifetime value (CLTV). Because not using behavioral marketing doesn’t just prevent success, but it can promote disengagement, leading to many of those acquired customers eventually walking away.

Learn more about CLTV

In order to use behavioral marketing to its best effect to maximize CLTV and promote long-term engagement, marketers need to:

Unify customer data across multiple channels

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According to Econsultancy, more than 40% of customers use more than one device when shopping with a brand – some will even use multiple devices to complete the same task. And if you’re not able to tie those different actions together into the same cohesive image of your customer, it becomes impossible to deliver campaigns that address those actions. Imagine customer frequently makes purchases on your website, then decides on a whim to use your mobile site for the first time – it doesn’t make sense to start sending this customer welcome messages via mobile. When you can unify behavioral data from multiple devices and channels, you can determine which signs are pointing to each stage of success, and hone in on those signs to maximize LTV.

Acknowledge each stage of the lifecycle

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Marketers are familiar with the stages of interest that every customer goes through (Awareness → Interest → Consideration → Intent) – in most cases, the lifecycle is used as a map by which marketers can observe where each customer is, and guess with decent accuracy what their next step will be. But if you’re not doing anything beyond this, you’re not marketing to customers as effectively as you could be. By mapping the stages of the lifecycle to those comprehensive customer profiles you’ve built out via unification of cross-channel data, you can reach out during key moments of engagement with a contextually-relevant message that acknowledges what each customer wants.

Communicate to the customer in the right way at the right time

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Once you’ve developed a greater sense of where your customer is in their individual lifecycle (and that means both where they are in their shopping journey as well as which channel they’re presently engaged on), you can reach out in the way that aligns with where they are and what they need. Location is key, and timing is key: If your customer chiefly engages on your mobile app it doesn’t make sense to send them an abandoned cart message over email, and if your customer is about to walk away from a purchase it doesn’t make sense to message them about it retroactively. Working in real-time is critical to honing in on peak moments of engagement and making the most of them, in order to move your customers along their individual lifecycles and maximize LTV.

Behavioral marketing is about using customer-centric initiatives to understand what your customers need from your brand, then ensuring that those needs are spearheading every campaign and engagement opportunity. When customers are seeing that their needs are being put first, they’re more likely to come back – and when marketers are taking a behavioral approach to interacting with consumers, they’re empowered to be more strategic and to hone in on every opportunity for engagement. And taking an active role in your customer’s brand experience is critical to maximizing their LTV.

To learn more about how to maximize CLTV, download our latest whitepaper.

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