Drive Your Buyer's Lifecycle, Increase Revenue and Retention
The process of acquiring and sifting traffic into engaged, and ultimately buying, prospects is critical to your customer acquisition efforts. Managing your audience is often referred to as the early stage of the “Customer Journey.” In this post, we’ll focus on the core and most pivotal part of your relationship with the consumer — purchasing from your brand.
Based on some years of experimentation and measurement, we can share a simplified and highly actionable approach that can make a difference in how you value and grow value among customers. This is the buyer lifecycle.
Prospects: Before They Are Customers
Prospects, of course, come from many places: word of mouth and direct visits to your website and to your retail stores. Advertising and search drives them to on- and off-line points of sale. Prospects can be those who simply signed up on that ever-larger email signup popup on your homepage, or those who put items in a cart and “almost” purchased, but abandoned.
But prospects can also be those who we leverage statistical intelligence to hand-pick. Not just look-alikes but the “buy-alike” prospects with the highest potential value. See my prior column called "The Most Important CRM Metric You Might Be Missing."
All of these prospects have the same thing in common, they have not purchased, and a level of investment and communications will be required to drive them to the next step. This cannot be overlooked without consequence. Prospects, regardless of the level of engagement or targeting, have a massive, and in some cases, a predictable difference from the buyers you seek to drive incremental sales from — they lack the most powerful signal of all behaviors — actually spending with your brand. Commonsensical enough, perhaps — but the prospect ‘batch and blast’ marketing that pervades retail emailers typically makes the challenge harder. Customer Intelligence is required to target, learn and test your way into viable prospect conversion strategies. We reiterate this point as it is often assumed that prospects, when contacted, will just buy — and they don’t. The bar is higher (see "Bigger is Better: How to Scale Up Customer Acquisition Smarter" for how to target the right customers, and the sophistication your competitors may be leveraging already).
To be sure, an analysis of your prospect base, which in a great many organizations is actually called the “email file” — another issue, in itself ― will help you determine who is likely to buy and who is not. This can be achieved by considering engagement measures, like opening and clicking your emails, visiting the website and micro-conversions. While these behaviors are correlated with the move from prospect to buying, it is not uncommon for the “average” prospect files to contain too many records of individuals who will never buy — they are lookers, not buyers. They may lack the means, intent or occasion to buy — or they may have experienced some change in their lifestage that moved them out of the market for your product. The opportunity is in identifying the highest value prospects and investing more thoughtfully in converting them.