Identifying loyal customers has always been important to marketers for many reasons. Traditionally, the best way to do this has been to distinguish frequent customers from the rest and cater to their needs. Now, however, marketing technology allows agencies to more closely study traits of all customers, not just high-spenders, to identify the most valuable short-term and long-term customers.
Samuel Greengard spoke with several industry experts on this topic in a recent article on CMO.com. Among those interviewed is Kurt Carlson, who is a processor of marketing at the Georgetown University McDonough School of Business.
Carlson pointed out that over the past couple of decades, most companies and CMOs have honed in on the concept of customer life time value. “The goal is to acquire customers that provide a long and large stream of profits. This means keeping acquisition costs down, retention high, margins at an optimal level and reducing churn. Businesses are looking to upsell, cross-sell, and understand where a customer fits into the lifetime value equation,” he explained. But all of that is only part of the overall picture. “There’s a need to expand the concept to understand customer engagement and what it means to be fiercely loyal,” Carlson added.
Want to learn more?
Request a free consultation with the B2B technology PR experts at Idea Grove.Start Here