Database: Grow Your Customers
This data enabled Eukanuba to determine the growth phase—which differs greatly by breed size—of the dog at any given time. Each growth phase of a dog, from puppy to adolescence to adulthood and eventually senior, comes with its own nutritional needs. For each phase, Eukanuba had the appropriate balanced product. Communication programs were developed to guide the new puppy owners through these growth stages into adulthood and beyond. Whenever a switch to a different product was necessary, the dog owner would receive the timely advice, together with additional information on proper care of the dog in the concerned life phase. This approach increased overall retention among dog owners who had received the initial trial kit and following mailings.
Share of Wallet
Is Loyalty, Too
EDM helps explain all the needs a customer may have and allows marketers to formulate offers that fill those needs. With transaction-based marketing, regular repeat purchases correspond to "loyalty." Customers keep coming back, therefore they are loyal.
In a relationship, regular repeat behavior is important, but so is exclusiveness. The more options people keep open, the more likely they are to switch. Understanding customers' needs becomes crucial in making sure marketers can fulfill as many of those options as possible.
Maintaining a high share of wallet means a better chance of maintaining a customer when his needs change, provided you also plan to offer what will be needed in the future. This allows for lifecycle marketing, with life events serving as indicators of when marketers need to proactively change offers.
For example, rather than wait until a customer decides it is time to switch from puppy chow to active dog chow, you should tell the customer when it is time. This can reduce a customer's shopping around and help make sure he remains loyal to your product family.