The Global Pandemic has thrown the international supply chain into chaos: first there were shutdowns of factories and ports, then surges in demand for specific products, and even now with major changes in ecommerce volume but distribution centers struggling to keep up. Throughout the year I have heard sellers tell of stock stuck at sea, in customs or even in the parking lot at an Amazon warehouse.
With so much confusion, many sellers don’t think now is the time to negotiate with their suppliers. But there may not be a better time to lock in deals that prepare your business for the new normal. Ecommerce has seen phenomenal growth, and asian factories in particular are back to normal production levels. This is the time to align your suppliers with your business as the industry looks to maintain its dominance within the retail economy.
In early 2020 Asian countries at the forefront of the pandemic shut down quickly and definitively, throwing supply chains all over the globe into disarray. As the global effort to slow the spread of the virus took shape, ports closed and customs offices shut down while they worked out how to defend against infection. Even with reopening, shipping times have doubled or tripled on some routes, as the increase in ecommerce volume has coincided with a global slowdown in transportation.
Later in 2020, the Chinese lock down in particular paid off, with factories able to return to full capacity. But the disruptions at ports and through transportation hubs has not subsided, and capacity still has not increased to manage the new demand. Air transport is down significantly as global passenger flights, with their extra room for cargo, have plummeted. On top of all of these transportation issues, there are logistical problems dealing with the surge in consumer demand for delivered goods: many sellers report their shipments have arrived at Amazon’s doorstep, but don’t get checked in for weeks.
With so much uncertainty, it may not seem like the best time to renegotiate, but it is essential to secure your position in the new ecommerce economy to negotiate now.
I have seen a few trends in how to negotiate during COVID. Below are the most common mistakes to avoid and tips to reframe your thinking:
- Focusing only on what you have done and what rates you had in the past.
All negotiations come down to leverage in some form or the other. By only focusing on the past you significantly weaken your position. The new normal for ecommerce is going to be much bigger than pre-2020, and you should negotiate for volumes that are a step change from your previous growth.
-Making it personal / emotional.
Your negotiation has nothing to do with your self worth or how much your suppliers like you. Particularly in this climate, company needs may have changed with scale and markets - what it needed a year ago may no longer be relevant. Preface the conversation by telling your supplier this is not personal and you want to find long term alignment with their company. By mentioning this in the beginning you have a framework to reference as negotiations become more intense.
-Making it obvious that you are not willing to walk away.
Know the market value for alternatives. Domestic manufacturing is booming, and may be a viable alternative when shipping concerns / tariffs / lead-time are taken into account. Similarly, domestically made products can still be outsourced, if you plan for the shipping in advance. Negotiations come down to leverage. When you make it clear you are sticking with your current supplier no matter what happens in the negotiation, your leverage is decreased, perhaps down to zero.
-Failing to get organized
Too often sellers will get bogged down with the process of proposals and quotes, and fail to adequately understand all of their options. Think about what you have learned so far from your suppliers, and ask detailed questions of their competitors. Price alone is not your goal - quality, communication and reliability are just as important to your bottom line.
Avoiding mistakes is just half the battle. Next time I will cover positive steps you can take to get the best of of supplier negotiations.
About the author:
Ben Faw is a Co Founder of BestReviews, which he built into one of the largest reviews sites in the Amazon ecosystem. Ben sold BestReviews to Tribune for over $100M in 2018, and again to Nexstar for $160M in 2020. Ben is also a military combat veteran, serving in the US Army Infantry, including a tour in Northern Iraq. Ben advises and consults with a wide range of companies on strategies around e-commerce and revenue growth.
The COVID-19 pandemic has us all facing unprecedented challenges, and it can feel overwhelming. Whether it is the stress of addressing an entirely new business environment, or trying to secure a SBA loan, or just figuring out your kid’s distance learning, many of us are exhausted. How can we push through and keep going?
Before I became an entrepreneur I was in the Army. I thought I knew hard work after attending West Point and some of the rigors there, but then I went to Ranger school. While I was there I learned a lot about my limits - what I thought they were and what they really are- which has helped me push past obstacles in my business career.
You have more in you than you think.
I can still recall my most difficult day at Ranger School. I was carrying an extra backpack, probably over 130 pounds of total load, and walking up the side of a mountain on a “rescue mission.” At first, it felt okay, but as I kept hiking, up and up, I started to feel like I was going to fall backwards. The weight was so much more than I was used to; I thought I might die from exhaustion. But I kept taking that next step. I leaned forward, let the pain run its course, and kept moving. As revenues dry up while the bills keep coming, keep moving forward, no matter what.
Focus on one hour at a time.
Nearly every day in Ranger School brought a new experience of exhaustion. I knew roughly how long I would be in training (assuming I did not get dropped from the course or recycle each phase), and thinking about what was coming that afternoon, the next week, or next month started to really bring me down. Finishing seemed impossible when I thought about the sheer volume of challenges in front of me, and the combined lack of sleep, lack of food, and shivering cold. I realized that thinking about next week was keeping me from focusing on today, and getting in the way of completing today’s challenge. I stopped worrying about how I would manage tomorrow and focused on managing right now. As you triage your COVID related worries, let go of the thoughts about next month’s loan payment , and focus instead on getting through today.
Lean on those (literally and virtually) around you
At Ranger School, I was almost never alone outside of the first few days of individual events. Sharing physical space with other soldiers can be downright gross. Sometimes you just want a moment alone. But while it can be frustrating to be surrounded by others, it is ultimately a great source of strength. Knowing my fellow students were facing the same challenges was energizing. We supported each other through pain and celebrated together in triumph. Your friends, family, and co-workers can be an incredible source of energy to push forward mentally, emotionally, and physically. Simply sharing what you are going through can bring you a great sense of unburdening, and give you the energy to take the next step. If you are self-isolating alone, remember that you are joined in this experience by your entire network. Reach out and share your experience; you will find comfort in knowing that others are just as challenged, and be encouraged by their strength.
Keep your eye on the prize
The Ranger tab is just a small piece of cloth. But the crucible of Ranger school, the ordeal that Rangers endure to get that little piece of cloth, that is an incredible life experience. It builds resilience for any challenge life throws at you. As you face the challenges of COVID-19, think about the reason you started your business in the first place. That dream hasn’t gone away. The corona virus is an ordeal, but just one of many that you have faced and will face as you build your business. This crucible will make you all the more prepared for the next challenge, and the next after that.
These search engine optimization trends have increased in importance:
-Increased speed on websites as more visuals are integrated is important. Users are now watching more videos on the Internet, which makes it necessary for websites to load quickly. Ultimately, this will enhance a powerful personalized search that is more precise.
-Website owners can also expect Google and other search engines to become more strict with their SEO regulations and enforcement with fines or penalties that are more severe (duplicate content as an example).
-Users can expect improved personalized search results due to fast and powerful algorithms that continue to evolve as Google’s machine learning capabilities become more advanced (IP Address based results as another example).
-User intent optimization is a must as voice search increases in popularity. The integrated keywords should deliver on promises to the person performing the search. More companies are looking into voice optimization as more people are utilizing the feature on their phones or with their home assistants to obtain results. It’s expected that by 2020, half of all searches performed will be done by voice. These voice searches are often longer than what is typed onto a keyboard. It’s important to have your SEO concentrate on keywords with a length of seven to nine words that are often used in conversation.
-Local search geo-targeting is more relevant than ever to businesses trying to attract customers in the area. Because of this, a company’s website needs to indicate where it operates. It’s recommended that small businesses make local search optimization a priority. The increase in precision means instead of targeting a suburb in the city, it’s now important to target a specific cross street. Proximity matters to everyone, which is why businesses need to focus on targeting specific streets or corners. This utilizes the power of mobile searching that is increasing at a rapid rate. Some efforts in the ecosystem are questionable, so be aware of the risks.
-There should be a stronger focus on image search. Because users are increasingly searching for images on the web, it’s become necessary to optimize visual material. Sites will rank higher if they have higher-quality images and should work in harmony with text or video material that is posted and all cover a topic comprehensively to inform the reader.
Page Speed
An SEO trend most applicable to the majority of websites includes how fast your website loads. Page speed continues to be relevant and necessary for everyone with a website because Google values the best user experience (UX). You need to have a quick desktop loading time because it’s increasingly a ranking factor. Users expect pages to load within two to three seconds rather than 15 seconds, which makes it necessary to consider utilizing a different host or add new plug-ins. If visitors have to wait too long to access your content, they’re more likely to change their mind and visit another website before reaching any of your interior pages.
How to Apply These SEO Insights
One of the best ways to begin executing these new optimization trends into your web property is to improve the quality of content on your website. This includes incorporating fresh, engaging content, optimized with the appropriate keywords and internal linking. This allows the search engine to learn more about both the old and new content you’ve posted. This will also draw more visitors who enjoy your old content to your new content. You can monitor the improvement in your pages with session statistics from Google Analytics. It’s also essential to look beyond Google due to Amazon and other search engines’ predicted rise in dominance in the coming years.
Make it a priority to be content driven if you want to succeed and stand out amongst your competitors. Keyword relevance and backlinks also need to be added and are trends that seem to be here to stay. If you’re a local business, you’ll want to be specific about your current location on your website. This ensures searchers have an easier time finding where you are specifically located. This may mean the difference between deciding to visit your business or your competition.
Integrating mobile optimization is also key as more people use their phones to conduct online searches. As people are out and about, they want the freedom to quickly find a local business. Your mobile content will be reviewed by Google and where it’s placed in the SERPs. Although you won’t necessarily be penalized if your website isn’t mobile optimized, it will affect where you rank.
Ultimately, those who work hard to follow the new SEO trends will be the ones to rank higher and find success in their specific industry by attracting and keeping more traffic on their website. Following the latest and long-standing rules established by search engines will prove to pay off over time.
Ben Faw is a Co Founder of BestReviews which sold to Tribune Publishing in early 2018. Ben helps both B2B and B2C companies navigate and win in the online marketing world.
SEO continues to evolve, with the recent June core algorithm update the latest example of some sites crashing (online gambling as a hard hit industry), and others rising (generally sites following EAT principles). That’s why it’s necessary for business owners and bloggers to stay updated on the latest algorithms and rules. This will ensure they can continue to rank high on search engines. The first search website went live in 1991 when sites were simply ranked by their content. In the last 10 years, Google has become stricter with the rules enforced as more websites are developed and the web becomes an increasingly complex place to navigate. In the last decade, some of the top trends with SEO include utilizing keywords, improving content quality, and using ethical and relevant links. Although it’s often been challenging for businesses to stay updated on the latest SEO guidelines and trends, it’s also improved the quality of the information presented and has delivered a better user experience.
Most recently, the changes that have been made have been developed to deliver a better mobile-friendly or responsive web design, local SEO, semantic markup and content that is topic-based, and improved website security with SSL and HTTPS. All of the tools are used to provide a better, user-friendly, and secure experience when browsing each website. They are also part of Google’s plan for remaining the top search engine on the Internet, unless the US government pushes a regulatory agenda that breaks apart portions of the core search business.
Threads Still Popular and Powerful Today
Quality content is here to stay with SEO, but now Google values thought-provoking content that shows the company or blogger truly cares about the reader and values their time spent on the website. Without quality content, people will spend less time on the page or browsing all of the pages, and Google measures that engagement as another factor in search ranking. Quality websites that deliver an excellent user experience can’t rely on visuals alone to keep users on their site. All of the content should be good enough to acquire links to ensure it can rank on Google. Backlinks continue to play an important role, which allows businesses to achieve authority and trust. Please check in for Part II next week.
Ben Faw is a Co Founder of BestReviews which sold to Tribune Publishing in early 2018. Ben helps both B2B and B2C companies navigate and win in the online marketing world.
Huge thanks to Justin Nassiri for the awesome support and great questions / research. Hopefully this can be a useful tool to help veterans and others both now and later, as well as those considering a start-up path. Highly recommend checking out all of the great work Justin has created at https://www.beyondtheuniform.io/, it is great content and helpful for almost any veteran regardless of the stage of life / transition / etc.
Graduation day is fast approaching for business school students, which means most are asking: What’s next? What is my life going to look like after school? Or should I go back and attend more schooling? These were questions I was asking myself two years ago as my own graduation from HBS approached. Now, two years out of the program, I have some perspective, and I think it’s useful. If you are considering an MBA or other graduate level education, keep reading.
Lessons learned:
Not all Harvard MBA students are raking in the dough
While some graduates do command incredible salaries eventually, none that I am aware of made millions their first year after school.
Furthermore, in many anecdotal cases, those who choose jobs making less money than their peers were often the happiest and found their jobs most rewarding.
2) Men still make more than women in some fields, but not all
There is an earning variance between men and women, but it’s not universal that men make more. As you can see above, while women do make less than men in most fields, they command larger wages in non-profits and HR.
(3) Prepare to hop jobs
I changed jobs less than two years after graduation. Many of us did. Some people changed for personal reasons (geographic preference or relationships), and others moved after being exposed to unexpected opportunities for learning or places they could leverage their expanding skills. Moreover, many dozens of my peers found something amazing, unexpected, and risky, and yet were comfortable making a leap into the unknown given the confidence in their future derived in large part from graduating from HBS.
(4) A Harvard MBA is not a ticket to Easy Street
Some people believe a myth that with a Harvard MBA you can start slacking and still succeed. The truth is the opposite. No matter your education, your work ethic will be the deciding factor in your success. Someone else without your academic background may feel they have something to prove, and they could be prepared to work rings around you. Putting in the work, even after a grueling education, is still required for success, as well as gaining the trust of others for increased responsibility and authority. Your MBA sends a powerful positive signal. But it does not show up in the morning and work. Only you can do that.
(5) Your network is everything
The combination of your proven abilities and your access to influential people in their fields matters. Regardless of the industry or function you enter, there is a strong chance that at some point early in your career another alum will be able to help you out in a meaningful manner. In my own case. a friend of a friend from HBS helped me secure a call with a potential client only a few months into my first job after school. Without his support this prospective client might have never spoken to me (as they had turned down calls with other sales representatives from my company for months). With this kind introduction a relationship was formed, and eventually a deal was closed, and later on this client was one of the largest revenue drivers for my entire business unit.
(6) You don’t have to be seen as an elitist
You can be snobby about your MBA if you want. But why? I have found that staying humble and learning from everyone is the best course of action. Using the knowledge I gained from business school to help others has made a lasting difference in both business relationships as well as personal ones. Helping a friend polish his or her resume or prepare for an interview, and then watching them get a job offer, is a pretty exciting experience.
(7) Business school habits die hard
Time management, wellness, healthy living, and a lifelong pursuit of learning and growth are all traits you can develop or refine at business school. For many (myself included), basic habits that I honed daily during HBS continue to be invaluable today in terms of maintaining balance and health. I found the two years critical to establishing many of the building blocks in my career.
(8) B-school buddies are priceless
No one will be able to convince you that the expense of B-school, roughly $200K in direct costs at most full-time programs today (not to mention opportunity cost, which you hopefully learn about in business school), is cheap. Business School is a huge investment. However, amazing friendships that enrich your life are not an item you should put a price tag on. The unquantified items from business school – time spent reflecting, time with wonderful friends, and the forging of new relationships – will have more lasting value than you can imagine right now.
To Ajmal Sheikh, Heidi Kim, Julia Yoo, Momchil Filev, and Walter Haas: You have each been wonderful supporters in my writing development and more importantly dear friends, thanks. To the Professors, staff, and faculty of Harvard Business School, thanks for shaping my life journey in a meaningful and positive manner. To Rafe, thanks for the editing, you made this far greater than it was at first draft.
Ben Faw, is a Co-Founder and COO at BestReviews, helping arm consumers with confidence and clarity to simplify purchasing decisions. His education includes West Point, Harvard Business School, and multiple military schools including Ranger and Airborne School.
Has your house burned down from one of these devices? Did you break your wrist learning to ride one? As many have followed the hoverboard craze, it has become clear the Hoverboard situation is interesting on multiple levels.
After fires were reported in many media channels, BestReviews, the product review site where I work, was the first to report that Amazon banned many of these devices from its website. Amazon’s team stated they wanted “confirmation of UL certification” which many OEM’s provided and soon many devices were back in market (probably a few less knock-offs). For a full timeline of the situation over the last few days please look here. Several lessons jump out that apply to other situations:
Research prior to purchase: Particularly items with batteries and chargers that are non-standard, and perhaps products you intend to ride on if you value your life…
Take the time to learn the basics: Many injuries may have been prevented with a combination of the proper safety gear as well as time to master the balance required. Rushing into use has sadly wreaked havoc on many.
Understand the marketing: Nothing about these devices hovers. However, “hoverboard” is a much better marketing buzzword than “segway without handles,” or anything else of that sort. Sadly, some consumers have almost certainly believed too much of the title, sadly realizing there would be no hovering when the device actually arrived in their home.
There are many other lessons and insights to gather from this recent episode. Please share them via comments!
Is The Office Transforming Faster Than Your Marketing Strategy?
Like Mike Campbell describing how he went bankrupt in Hemingway’s “The Sun Also Rises,” the office desk has undergone a transformation “gradually, then suddenly” over the past few decades — as this fascinating video demonstrates.
The video, created by BestReviews.com a company that focuses on empowered decision making via content reviews on items ranging from credit cards, steam irons, and basketball goals (and many things in between), is called “Transformation of the Office,” and it raises a key question for marketers. How can we keep pace with all of the technological change in the offices where our prospects work? The video opens with a cluttered desk circa 1980. Among the items in the office where this desks sits are a desktop computer, telephone, calendar, globe, calculator, notebook, stapler, magazine, newspaper, fax machine, Rolodex, and a pair of sunglasses. As the video progresses, so do the years, moving from 1980 to 2015.
Where Did The Items On The Desk Go?
Along the way, most of the items of the desk vanish and move into cyberspace. For example, in 1984, a laptop replaces the desktop computer. In 1998, the PDF appears, which forces the disappearance of the fax machine. In 2005, Google Maps displaces the globe. In the mid-2000s, LinkedIn replaces the Rolodex. A mobile phone knocks out the landline in 2006, and various technologies dispense with the magazine and newspaper over the years. In the end, the only things remaining on the desk are a laptop, mobile phone, and pair of sunglasses.
Why Does This Matter To Marketers?
As marketers, we should find this story familiar. Marketers are trying to keep up with rapid change and complexity in their professional landscape, and the speed of transformation is only getting faster. While the office has changed drastically in the last few decades, so has the range of channels available to the marketer. Trade publications, newspapers, phonebooks, and catalogs have retreated from desks, because myriad alternatives are now available online. In the past a buyer might have used, for instance, a business magazine or a catalog or a direct phone call to a salesperson to research products. Now, the potential buyer sits at his desk – or uses his mobile phone virtually anywhere – to research a purchase.
BOTTOM LINE
The bottom line is the path to purchase has changed radically. Forrester Research estimated that as much as 90 percent of the buyer’s journey takes place before a buyer reaches out to a salesperson. The tools that were once in the office and now exist in cyberspace have helped transform the buyer’s journey. But these digital tools have done more than just replace physical tools, they have made these tools more powerful, deeper, and richer.
Take Google Maps, for instance, which replaces the globe. Google Maps is more than a static map. It is an interactive tool that can provide travel directions and create individualized itineraries. And because Google Maps lives in the cloud, it is constantly updated and never outdated.
Next Steps?
LinkedIn is another example. It’s facile to say that LinkedIn is a Rolodex moved online. But the digital nature of LinkedIn makes it so much more than a list of contacts. In addition to allowing its members to build networks, LinkedIn serves a data repository on the world economy – which the company refers to as “The Economic Graph.” LinkedIn also enables its members to publish professional content at scale and influence potential customers.
In a world where work and home life has become blurred, LinkedIn remains one place – whether a user is on a computer or a mobile phone, whether in the office or not – where people can be reached in a business mindset. LinkedIn’s marketing products – such as LinkedIn Sponsored Updates, LinkedIn InMail, and LinkedIn Lead Accelerator – live and thrive at a unique intersection of data and mindset. With LinkedIn, marketers can create content in a unique business oriented context, whether that context is in the office, at home, or on the go.
Has your marketing transformed with the office in a unique way?
Another version of this post originally appeared on the LinkedIn Marketing Solutions Blog - thanks to incredible support from Sean Callahan. Sean took thoughts and ideas and made them into something special.
Have you ever heard of a salt water floating spa experience? I had not. It exists. Thanks John. When you get more interested later in this article come back to this link if you doubt me to learn more: http://rebootfloatspa.com
Hearing about this through a friend I decided it was worth taking some risk to create a potential adventure, much like the initial rationale for creating this blog after experiencing a foot massage in China that was nothing short of transformative.
The salt water floating spa is - like a true Chinese foot massage - a potentially life changing experience.
In my own case I found myself in a white room with white furniture and bright lights, waiting for my time in salt water - floating in bliss.
To start with the staff introduced the concept and explained a few approaches and postures via a video on an iPad. You then hear most of this for the second time in your own private room prior to the start of the experience. When the staff departs it is game on.
The pod you find yourself in (see image), is large enough for most humans, and deep enough to suffice as well (probably 12-18 inches). Due to the incredible amount of Epsom salt in the water you have no problem staying on the surface without a flotation device.
After taking a shower I slipped into the water and began floating on my back- and from the first moment it was a delight. Yes, I did drift around for a few moments and bump against the walls. However, I eventually found myself in the right spot in the central area, alone and at peace. While I have enjoyed a few moments floating in the ocean, this was another level. I struggle in the ocean to keep my body flat and stay floating correctly. In this amazing concentration of epsom salt no effort was required. I was floating like a tiny baby in a mother’s womb with no exertion on my part.
While some may enjoy lights on, or perhaps light music (both of which were offered), I choose to close the lid and dabble in darkness. It was the right decision for me. From the first few minutes of rushing thoughts and a wandering mind I soon found myself relaxing with focused breathing, slipping deep into a place one rarely travels, and not complaining about anything!
When the end came I had been floating for around 60 minutes and was in a pleasant place to say the least. After showering off the salts my session was complete - and I was ready to see the world again.
The post floating experience is best compared (in my view), to that feeling after a great surf session when you have really connected with the waves and nature in a powerful way, and if you can you lay down for a wonderful nap.
I cannot confidently say the salt water floating spa is for every person out there. However, if you want to try something new, and have any interest in events connected with salt-water and / or relaxation - consider giving it a try. It might just change your day, week, or life.
Customer Lifetime Value is a widely accepted sales and marketing metric. In the tech sector, where software-as-a-service is an increasingly common model, many companies have built their business models around customer lifetime value. While CLV involves many assumptions and can be difficult to calculate, this metric can be a helpful tool for revenue forecasting. It can also help companies project gross margins, profit margins, and even customer acquisition costs.
We believe marketers should also pay close attention to the flip side of this metric: Lost Customer Lifetime Value. LCLV estimates the customer lifetime value lost by:
Clients who don’t spend to their full potential. Leads in the pipeline who didn’t become clients fast enough. Prospects who never became clients. The LCLV is a metric that has the potential to prompt companies into thinking differently about how they market and sell to prospects and customers — and how they go about generating revenue. LCLV forces a company to ask some tough questions. What is the forecast discounted cash flow of the lucrative target customer, who was once deeply interested in your product, but ultimately chose a competitor instead of you? What is the lost customer lifetime value of the existing customer who has the potential to be a $1 million a year account — versus the $20,000 that customer spends today? If we use these figures, every customer that is lost to a competitor or doesn’t spend their full potential with your company essentially costs your business $1 million in annual market share.
With LCLV as a guiding principle, marketers can build their communications programs by using digital technologies that enable them to segment their audiences. Using segmenting technologies, marketers can deliver targeted and differentiated messaging to their company’s customers, to prospects in the pipeline, and to prospects in the upper funnel or not yet in market.
Marketing to Customers With LCLV in mind, marketers can more effectively market to their existing customers in an effort to retain them as well as cross-sell or upsell them. The 80-20 rule holds that 80 percent of your revenue stems from 20 percent of your customers. Retaining your most profitable customers is paramount. On platforms such as LinkedIn, you can segment your customer base, and it’s possible to target messages that only reach your existing clients. Too often marketers fixate on feeding leads to the sales team in an effort to generate new customers. We believe it’s more efficient to focus marketing’s efforts on the retention of your best customers. Yet, in an effort to appeal to net new prospects, the marketing and sales machine often doesn’t place enough emphasis on renewing and growing existing accounts. The costs for retaining or upselling existing customers is significantly lower than the high costs required to acquire net new customers. Research in the Harvard Business Review concluded that increasing “customer retention rates by 5 percent increases profits by 25 percent to 95 percent.”
Additionally, losing a current account not only embarrasses the sales department, it puts pressure on the marketing department. Sirius Decisions estimates that only 6 percent of MQLs (Marketing Qualified Leads) result in a new customer — that means that it takes about 16 MQLs to generate a single sale. In some industries, creating a single MQL requires hundreds or even thousands of dollars in marketing spending. Losing a customer can be expensive – for both sales and marketing.
Marketing to Your Pipeline and Nurturing Leads In the past, marketing messages were blunt instruments that communicated the same basic message to every potential customer, whether they had yet to express interest in your company or were in the lower funnel. Now, however, marketing technologies enable companies to target messages to leads based on where they are in the funnel, their online behavior, and their business demographics (that is, their job function, company size, and industry).
By segmenting leads in the pipeline, marketers can reduce LCLTV by moving these potential customers toward a final sale at a faster pace. New technologies, such as LinkedIn Lead Accelerator, enable marketers to target social and display advertising to prospects who have visited the company website but did not share an email address. Other prospects, who may have shared an email address and delved deeper into the website – visiting a specific product page, for example – would receive a more personalized message targeted to them based on their behavior. The bottom line is that messaging prospects different based on their segment can accelerate leads through the pipeline – and cut LCLTV significantly.
Marketing to the Top of the Funnel Marketing technologies enable marketers to segment their target audience. With these new marketing tools, marketers can reach a top funnel audience with brand awareness messaging. With LCLV in mind, the marketing department must reconsider some of its approaches to communicating with prospects. LCLV is a full funnel marketing approach that begins at the top of the funnel, when the prospect is only just beginning to consider your product or service. Using an LCLV approach, a marketer must consider, What is the lost value from the wrong message to the right person? Or the right message to the right person at the wrong time? What is the Lost Customer Lifetime Value from the media efforts you pay for that actually turn off a potentially lucrative prospect?
We believe LCLV must also be at the start of every marketing conversation.Every time your company touches a customer, those touches are strategic and tactical at the same time. These touches influence and shape revenue growth. To prevent losing customers – actual customers and potential customers — companies must create personalization from marketing’s first encounter with that prospect in the top of the funnel, all the way down to the never-ending consultative conversations with clients that the sales team has on a regular basis. With lost customer lifetime value in mind, the most effective companies will shift the customer mindset from one of “this is my vendor” to “this is my trusted partner.”
Note: This post comes with contributions from Stephen Banbury, Vice President of Worldwide Marketing, AppDirect; Jason Stewart, Vice President of Strategy, Annuitas; and Brian Mullin of LinkedIn. This post originally appeared on the LinkedIn Marketing Solutions Blog - thanks to incredible support from Sean Callahan. Sean took a few thoughts and ideas and made them into something so much more.