- It costs 4-6X as much to acquire a new customer as keep a current customer (source: The Times)
- 80% of a company’s future revenue will come from 20% of its existing customers (source: Gartner)
- 5% increase in customer retention can increase a company’s profitability by 75% (source: Bain and Co.)
These facts confirm marketing success universally rests on a single principle: “Know Thy Customer.” The increasing need for personalization, localization and customization of marketing campaigns depends on it. Here’s a case study to prove it. A Fortune 100 company wanted to grow its App Store among one of its most high value targets, developers. They knew developers would be attracted to a reward that was fast, cash-like and “cool” so they gave them $100 Virtual Visa Reward. Virtual Incentives planned and executed the program guiding them through the Best Practices of “Know Thy Customer.” Here’s how:
- SEAMLESS INTEGRATION: The developer received an email with Microsoft branding and the headline, “Congratulations on your new App.”
- CUSTOMER APPRECIATION: A personal congratulations announced: “You did it.”
- PERSONALIZATION: The letter identified the developer by name. Online messaging could be tailored directly to the individual based on their relationship to the brand/
- INSTANT GRATIFICATION: The user was able to redeem with only one click.
- SPEED AND CONVENIENCE: The $100 Virtual Visa Reward could be used anywhere online that Visa was accepted which is virtually anywhere or a physical card could be requested for offline use.
- CUSTOMER SUPPORT: For any questions, the developer could select their preferred method to connect with CS (live chat, email, telephone) for immediate access.
- CUSTOMER PROFILING: The company was able to better know one of their most valuable customer segments and compile a database with personal preferences to not only “Know Thy Customer” better but better address their future needs to deepen the relationship.
For any business, you have to put the customer first. We’re glad to be helping businesses do it with the case studies that prove it. How well does your company “Know Thy Customer”?