E-Mail : What's That Contact Worth?
Using e-mail to build lifetime customer value
November 2008 By Loren McDonaldE-mail's Role in the LCV Equation
Depending on your goals for each customer segment, e-mail can help build or strengthen a relationship and accomplish these goals for your segments:
- Increase the average or total purchase amount per order.
- Increase purchase frequency.
- Drive more purchases in other channels, such as related company divisions or sister companies.
- Reduce customer service costs.
- Cross-sell to sister brands or products.
- Upsell users to premium services.
- Upsell purchasers to higher-margin products or services.
For example, this is how the strategy might work in three different sectors:
Financial Services—The high-LCV segment of a bank might include customers with several high-balance deposit accounts, mortgage and home-equity loans, and bank-issued credit or debit cards.
Here, e-mail can be used to promote wealth management services through personal money management and investment consultation, typically higher-margin services supported by fees and other revenue sources.
Companies Mentioned:
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