- Customer Share Marketing: Tapping Customer Loyalty
- The 3 Rs of Customer Share Marketing
- More from the Customers You Have Already Acquired
- The Zen of Customer Share
- Lifetime Value
- The Yin and Yang of Marketing
- Building a Marketing Plan from the Inside Out
- Driving Prospects and Customers: Feeding the Funnel
This chapter is from the book
This chapter is from the book
This chapter is from the book
More from the Customers You Have Already Acquired
Once you've decided that at least some of your marketing efforts need to focus on attracting more business from customers you already have, then you've basically decided that customer share marketing makes sense for your business. Customer share marketing complements market share marketing in that it can leverage the energy and attention that market share marketing creates in building brand, driving short-term sales, and driving interested consumers to a company's Web site. Once there, it's up to marketers to develop clever ways of capturing the identity, email address, and permission from prospects who have prequalified themselves.
While market share marketing utilizes mass-marketing vehicles such as television and print to reach as many prospects as possible, customer share marketing accomplishes just the opposite—using direct marketing vehicles to reach only those prospects and customers that have identified themselves as interested in what you have to sell. Market share marketing seeks no permission, while customer share marketing exclusively involves permission-granted messages.
Market share marketing is most often about generating the next sale, while customer share marketing is more about generating future sales, perhaps across the entire lifetime of the prospect or customer. If one of your products sells for $40, the quantitative perspective of market share marketing is focused on a $40 sale, and success is largely viewed on the basis of generating as many $40 sales as quickly as possible.
The quantitative perspective in customer share marketing is quite different and focuses on capturing all sales that this customer will generate for this category for the rest of her or his life. So instead of looking at a prospect or customer as a $40 opportunity, customer share marketing views a prospect or customer as a $10,000 opportunity (see Table 9.2).
If you can successfully blend your market share efforts with customer share efforts, you can create two levels of selling: one for today and for tomorrow. Consider the expense associated with convincing a customer to give you $40 approximately 250 times over the course of her or his lifetime.
Table 9.2 Pay Me Now or Pay Me Later
|
Marketing Focus |
Sales Objective |
Sales Objective Quantified |
|
Market Share Marketing |
Next Sale |
$40 |
|
Customer Share Marketing |
Lifetime Sales |
$10,000 |
|
© 2001 Customer Share Group LLC |
||
Remember the guy who prepaid for 750 issues of a magazine? For 14 years, there was virtually no marketing expense associated with that customer—just revenue. Your customer share initiatives should work to eliminate some of the convincing you must do over a customer's lifetime so that a higher percentage of those $40 sales occur out of loyalty—loyalty that you've built with a customer on a one-to-one level over the course of time.