Information from November 2016 Meeting
The Marketing Cloud is Going to Mature
The marketing cloud will come into maturity in 2017. You know, that utopian place where social media management, content marketing, advertising and automation come together in one fluffy white platform. The marketing cloud will become more the rule than the exception, adopted and perfected by smaller businesses as well. What does this mean for all those “me-too” startups next year? That it will be harder to gain traction as you compete with companies with better capabilities in existing solutions.
Consumers will prefer convenient online transactions
Millennials will buy through Instagram shops or Amazon. Boomers will continue to buy from the comfort of their homes, relying on television and newspapers. Shoppers are shoppers, and they’ll still come out to stores. In 2017, maximize product sales and fend off the competition by being more than a Google advertiser or an Amazon seller. Cater to the way consumers want to buy. 2017 will be about making customers feel comfortable about your purchasing your product/service, however they prefer. Start reworking your marketing channels now.”
You won’t be able to afford crunching numbers only at year’s end.
Be adamant about knowing your business’ numbers. Marketers very often are so excited about selling the product they forget about the important costs and metrics that determine success.
Do you know and understand the impact of your media costs, your customer acquisition costs, the customers repurchase rate and the lifetime customer value (LCV) against your cost of goods?
I recommend entrepreneurs understand these number sets or give good estimates against their values before committing to any sales channel or marketing budget. Break down those numbers, and the math will reveal how you can get into marketing channels you never thought you could afford.
The focus will be on lifetime customer value, not attracting new clients.
There’s that phrase again: lifetime customer value (LCV). Every prospect has an LCV that represents how much money he or she will spend with your business. LCV is the backbone of any product-driven business. Somewhere, people are wanting and willing to make a purchase. It doesn’t matter whether you’re a lawyer or a pitch wizard selling steak knives on TV for $19.95 apiece. Be sure you ask these critical questions:
What is your customer’s LCV?
Do you know where that number stops? It is in your direct database, in retail or online?
When do you give up on that customer?
How can you increase LCV?
It’s cheaper to keep a customer than to acquire a new one. Don’t “gamble in Vegas,” as the saying goes. You can’t establish a budget on Day One without knowing how much money that customer is going to generate for you 18 months from now. Work your LCV into your cash-flow models. Then determine the most profitable advertising channels based on LCV, not Day-One revenue.
Influencers will keep their status.
If you’re launching a new product or service, think about where a buying community exists. Who are the major influencers? If you’re selling to moms, for example, identify a few established Facebook or Instagram communities and seek to partner with their largest contributing voice. Financial products or aging products should be in communities centered around personalities from political-news radio channels. Don’t pay for tweets. Cut through the clutter by attaching your product to celebrities and voices that speak to controlled communities.