Marketing organizations often focus all of their time and budgets on generating new leads. But by wearing “lead generation” blinders, you lose sight of the bigger picture. Getting customers is important, but keeping them is essential to long-term business success. Marketing needs to expand its focus to include customers after the sale.
Open View Partners published this terrific infographic of stats about B2B content marketing.
Reading these stats, you cannot help but notice the focus on lead generation. This point in particular stuck out: 84% of B2B marketers said that brand awareness was their top content marketing goal.
B2B marketers are replacing advertising with content marketing. Great, but there’s so much more they could be doing. Content marketing has an important role to play after the sale, nurturing customers.
What happens to customers when you grow?
Also in the news recently was this article in Fortune about the shutdown of Homejoy. Homejoy was a cleaning services marketplace startup. The article’s author, Ellen Huit, suggests that the company never figured out how to retain its customers, with retention rates around 15-20 percent. The story illustrates the dangers of focusing exclusively on acquiring customers, without a model for keeping them over time. The risk is particularly acute for startups chasing fast growth.
After writing about this topic in my on Subscription Marketing, I’m continuing to hunt out examples of content marketing after the sale and sharing them with the members of the Subscription Marketing email group. Even if you’re not marketing a subscription-based solution, every marketer can learn something from successful subscription businesses.
If you have great examples or suggestions you’d like to share, let me know in the comments or by email. Thanks!
by emilio labrador
Reading has always been an important element of summer for me.
As a child, I remember checking out stacks of library books to bring to the family cabin for vacation. Reading was a family trait; our car carried more weight in books than other luggage. When attending summer camps, even though my time was scheduled, several lengthy books always came with me.
Several of these books have now found a place in my summer reading plans, taking their place in the piles of physical and digital titles awaiting my attention. Summer is partway over, and the reading list awaits!
Look for reviews of several of these books here, in this blog, in the coming months.
Do you have other books you’d add to the list? Let me know if there’s something you’d like reviewed.
Thanks, and happy reading!
Content cultivation is the practice of collecting content from customers to use in ongoing marketing and customer nurturing.
When it comes to content marketing after the sale, you need focus on the issues that are important to current customers. What better source for this content than the customers themselves?
You may have heard the term user-generated content, referring to posts, videos and other content created by customers rather than brands. Content cultivation goes further than simply collecting social media posts. Marketers engaging in content cultivation actively pursue and share contributions from customers to create new marketing content or support ongoing marketing objectives.
See this article I contributed to Marketo’s blog for a description and examples: How Content Cultivation can Reinvigorate Your Content Marketing Efforts
Here are a few other examples of content cultivation.
Do you have examples of content cultivation you’d like to share? I’d love to hear them. Leave a comment or send me an email. Thanks!
And if you’re interested in marketing for ongoing customer loyalty, join my Subscription Marketing group. I’ll share interesting resources and articles every couple of weeks.
[Image via Skitter Photo on StockSnapIO.com]
I did an interview recently with Roger Parker about the process of writing the Subscription Marketing book. During the Q and A session, one of the callers asked whether I had an audiobook version available.
In the immortal words of Homer Simpson, “D’oh!”
As a content marketer, I understand the importance of offering content in different forms. To reach a broad audience, you need to give people what they need in the format they want. Yet I’d neglected that practice for the book on which I had worked so hard.
(If you’re interested, here’s the link to the interview with Roger.)
So I’m focusing my blog efforts today beyond the written word.
Video Is Everywhere
No marketer can ignore video anymore. Video has qualities that make it particularly compelling in many business situations:
Let’s Hear It For Audio
Audio also has a place in many content marketing plans, for several reasons:
Practicing What I Preach
As the listener’s question highlights, I don’t always practice what I preach. As a writer first and foremost, I’m wedded to the printed word. But I vow to get better about using different media. And I’m going to start by repurposing content into different formats.
For example, I did a webinar for Totango back in May on Customer Retention Marketing. You can watch the video of it here:
And if you don’t have forty-one minutes to listen, I’ve turned it into a PDF ebook, which you can access by joining my subscription marketing group.
In addition, I turned the slides themselves into a presentation on Slideshare.
The bigger challenge for me, going forward, is taking content that originates in print and creating the other versions.
A Question for You, Blog Reader
Returning to the original question about audiobooks, what’s your personal take? If you’re have made it this far in this blog, clearly you’re a reader. Do you also like to have books on audio for car trips or the gym? Would you listen to a business book like Subscription Marketing on audio?
Let me know by leaving a comment or dropping me a line at ajanzer [at] marketingdocs.com.
Image Krzysztof Puszczyński stocksnap.io
“Value nurturing sounds great, but first we need to prioritize lead generation.”
Lead generation almost always takes priority over customer retention efforts. According to a recent study by Regalix Research, only about one in four B2B marketers plans for customer retention. The rest are simply too busy getting new leads.
I understand, really. Before you can worry about customer loyalty, you need the customers.
But neglecting customer nurturing at the outset can cost you dearly in the long run. The best metaphor I can think of is planning for retirement.
Why Customer Retention Planning is Like Retirement Planning
It’s a truism of retirement savings that the earlier you start, the more savings you can accumulate. Start saving for retirement in your twenties, and you’ll be well ahead of those who don’t start until their thirties or forties, even if you’re putting away a relatively small amount each year.
This is true for two reasons:
The same two arguments apply to planning for customer retention and customer loyalty. Whether you’re launching a new company, product or service, the time to start planning for ongoing customer loyalty is at the outset, not long after you have an established customer base.
Customer retention, like interest, is a compounding metric. Its impact grows over time.
If you’ve got 1,000 customers and a customer retention rate of 85 percent, at the end of four years you’ll be down to 522 of those original customers, while losing 15 percent of any new customers you acquire. If you can improve customer retention rates to 90 percent, then you’ll have 656 of those original customers after four years, and more of the new ones as well.
If those customers are loyal, they’ll not only keep coming back but they’ll refer your business to others. In other words, they’ll do lead generation work for you.
Embedding the Long-Term Perspective Into the Culture
Planning for retention from the start of a business or product establishes a culture of listening to and attending to customer needs from the outset.
In the early days of a company or a product, you have the most opportunity to engage with customers individually. Take the opportunity to build customer retention and loyalty strategies not just into marketing, but also into the corporate culture. When you start with a focus on the long-term customers, you’re less likely to fall into the trap of measuring success based on short-term metrics, such as new lead acquisitions or customers.
Don’t try to build long-term customer relationships using short-term metrics.
If you’re interested in the topic, download my free ebook on Customer Retention Marketing. And I welcome any thoughts or ideas you have on the topic.
Image: [cc] by LendingMemo.com.
Businesses have all kinds of data about customers. You can use that data in ways that demonstrate value to your customers, or that erode customer trust or creep people out. You decide.
As a previous blog described, campaigns that use customer data can help you reinforce the customer’s perception or realization of solution value.
But it’s a small step from personalizing messages to stalking the customer. To see how this can go wrong, let’s look at a few missteps.
Uber and the Ride of Glory
For all of Uber’s rapid success, it’s made a few mistakes along the way, including the company’s “Ride of Glory” blog that used customer data to analyze apparent casual hookups among its riders. I’d point you to the blog itself, but the company has wisely taken it down.
Uber’s data analysts defined the behaviors that demonstrated a casual hookup: someone catching a ride after 10pm on a Friday or Saturday, then picking up a second ride near the previous drop-off point between four and six hours later.
They then examined this behavior by city, by gender, and by date, and posted the results on its blog. Data analysts, no doubt, found it fascinating. Some Uber subscribers were less thrilled.
The blog was disconcerting for people who didn’t think about the fact that the company could profile personal behavior using the service. The company has since taken down the blog, but it dented the trust that is so essential for the service.
Shutterfly and the Awkward Congratulations
You know that awkward moment when you ask someone when the baby is due and they tell you they’re not pregnant? Shutterfly had a similar problem at scale when it congratulated a large number of customers on becoming parents.
This campaign had two major problems:
First, Shutterfly meant to send the announcement only to customers who had recently ordered birth announcements. Instead, it accidentally sent the email to a larger list. That was a human failure. People who had no children, recent or otherwise, got the announcement. Some found it humorous, others not.
Second, pregnancy and childbirth are personal, emotional subjects. One misplaced email can strike a sour note with recipients. Using customer data to automatically interact with customers on sensitive subjects is risky. The data itself isn’t infallible, and one misstep can cost you a loyal customer for life.
Handle With Care
What can we learn from these examples, and how can you avoid similar problems when using data to nurture customer value?
In the subscription economy, the customer relationship is built on trust. Violate that trust at your own peril.
(Image by WinterSixFour on MorgueFile)
The word ‘disruptive’ is thrown around a lot lately. It made Forbes’ list of the 10 most overused startup buzzwords. But there’s a good reason for that.
Disruption is all around us. It’s better to acknowledge and embrace that fact (even at the risk of overusing buzzwords) than to ignore it and find yourself marginalized in a world that has changed right around you.
These are a few of the thoughts that went through my head on reading Disrupting Digital Business.
In Disrupting Digital Business, Ray Wang of Constellation Research describes various trends fueling business disruption. These include:
As a marketer, I love the fact that the book frames all of these discussions in the context of making and keeping a brand promise. In an era of digital disruption, success goes to those companies who use disruptions to deliver a greater brand promise:
“When you keep your brand promise, you keep your value. You can keep your margins.”
Subscriptions, Disruption, and Marketing
It’s the sign of a good book that you find it rattling around in your head and coloring your thoughts after finishing it. For example, I encountered this article by Tien Tzuo of Zuora in Fortune about why an MBA isn’t useful in today’s world, because of the changes wrought by the shift to the subscription economy. He says, “Right now we are going through a once-in-a-century transformation in business that is throwing out all the existing rules.”
Tzuo is speaking of MBA programs in this quote. But I’ve had similar thoughts about the practice of marketing. As business models change from selling things to selling subscriptions and memberships, marketers that don’t adapt their practices to match the revenue model risk becoming less and less relevant.
Looping back to Ray’s book, marketing has a critical role to play at this moment because the brand promise is essential in an age of digital disruption. In this evolving world, marketing is becoming more relevant, not less so. It’s imperative that marketing organizations stay in tune with the changes happening in the business.
All of these pieces should come together in interesting ways in Zuora’s upcoming Subscribed Conference in San Francisco next week. I’ll be there leading a panel on customer loyalty and super-users. Tien Tzuo, as the CEO of Zuora and a keynote speaker, will share his thoughts on subscription models and their evolution. As another keynote speaker, Ray Wang will speak about disruption. And I can hardly wait to hear what everyone has to say.
In the mean time, I recommend that you read Ray’s book and start thinking about the ways that the grounds may be shifting in your own industry.
On Wednesday, May 13, I’ll be hosting a webinar on Creative Approaches to Retention Marketing.
To whet your appetite, here’s a sneak preview of a few of the topics:
The webinar is hosted by Totango; register for it here.
We’ll leave ample time for questions and discussion, so please join in if you’re interested.
Wow, I’ve walked the length of Japan.
The team at Fitbit sent me that nugget of data recently, and it’s a great example of value nurturing using data.
Fitbit is all about collecting and sharing data. It reminds me if I’ve met my goal for each day and week. But the company goes further by proactively sharing my cumulative progress. Helpfully, it puts large numbers into a meaningful context, like the length of Japan. And the company invites me to share that success with others in my social networks.
Nurturing Customer Value with Data
Value nurturing is the practice of helping customers realize value from your solutions long after the sale. (See the previous blog, Value Nurturing: Marketing Meets the Subscription Economy.) It’s one thing to help people be successful with your solution. The next step is to help them understand the value of your solution by sharing data with them.
People use fitness tracking devices like the Fitbit to monitor and measure activities; that’s the functionality they expect from the device. But why do people want to monitor and measure their steps? Because they value exercise and want motivation to exercise more. Increased activity is the ultimate objective.
By showing me the data about how much I’ve walked, the Fitbit team is reinforcing this deeper value. It’s pointing out my own success, using data it collects.
This is a core value nurturing practice: helping people recognize the value of being a customer.
Consumer-based businesses use this strategy frequently. For example, every time I check out at a Safeway using my loyalty card, the cashier tells me in person how much I’ve saved. That reinforces the value of using that loyalty card – a subscription I pay for with my personal information.
Here’s the challenge for marketers: can you find ways to nurture your existing customers with data you’re already collecting? When people are having success with your solution, can you do the math for them and let them know how well they’re doing? Do you celebrate successes, even the small ones?
If you’re interested in additional value nurturing strategies, subscribe to my monthly newsletter.
It’s time for marketers to give customer retention a little love.
According to the State of B2B Product Marketing 2015 report by Regalix Research, customer retention marketing comes in dead last in the list of B2B marketing activities. Only about one in four B2B marketers plan for customer retention.
Optimists like myself see this situation as a tremendous opportunity. Getting serious about customer retention marketing gives you the chance to jump ahead of your competitors and earn lasting loyalty from customers.
If customer retention marketing interests you, I’d invite you to join me in a webinar on May 13th titled Creative Approaches to Customer Retention Marketing. You can register for it here.
This will be the first in a series of webinars hosted by Totango with the speakers from its recent Customer Success Summit.
And if you have any creative customer retention strategies to share with me ahead of the webinar, get in touch. I’m always looking for more inspiring examples.