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In recent years, customer marketing has become a sales-driving tool for companies worldwide. While it encompasses a wide range of marketing activities, content creation is at the core of these efforts.
In fact, HubSpot data shows that 50% of marketers plan to increase their investment in these areas in 2024. If you're looking for an article that feels like a crash course in customer marketing 101, you're in the right place.
What is Customer Marketing?
At its core, customer marketing consists of strategies and efforts focused on engaging and retaining existing customers rather than acquiring new ones. It encompasses various activities designed to enhance the customer experience, foster loyalty, and encourage repeat business. Unlike traditional marketing targeting a broad audience, customer marketing focuses on an engaged user base to maximize value.
Starbucks, the global coffee chain, has a well-known and successful customer marketing strategy through its Starbucks Rewards program that helps with customer retention and loyalty-building. Customers sign up for a free Starbucks account through the mobile app. Members earn "Stars" (points) for every purchase they make. The more they spend, the more Stars they collect.
Customers who accumulate Stars can redeem them for various rewards, such as free drinks, food items, or merchandise. Starbucks uses data from customer purchases to send personalized offers and promotions based on individual preferences. Additionally, members receive a free drink or food item on their birthday. Rewards members also get early access to new products or special limited-time offers and order and pay through the app, skipping the line at the store.
This customer marketing program encourages repeat visits and purchases, enhances the customer experience through convenience (mobile ordering) and personalization, and fosters a sense of loyalty and exclusivity.
Importance of Customer Marketing
Businesses should prioritize customer marketing because it's a strategic play at customer retention.
It makes sense when you think about it, as retaining existing customers is far cheaper than acquiring new ones. 80% of your company's future revenue will likely come from just 20% of your existing customers. According to a 2023 report by Forrester Research, companies that excel at customer marketing generate 2.5 times more revenue from existing customers than companies that don't prioritize customer marketing efforts.
By working to keep your existing customers engaged with customer marketing, you reap benefits including:
- Increased Loyalty: Focusing on current customers helps build stronger relationships, fostering loyalty and trust.
- Higher ROI: Retaining existing customers is often more cost-effective than acquiring new ones. Engaged customers are also more likely to make repeat purchases.
- Word-of-Mouth Referrals: Satisfied customers can become advocates for your brand, recommending your products or services to others.
- Improved Customer Experience: By understanding and addressing the needs of your current customers, you can enhance their overall experience with your brand.
Key Strategies for Effective Customer Marketing
Implementing effective customer marketing strategies can significantly impact your business’s success. Here are several actionable strategies to get you started:
1. Personalization
Personalization means sending the right message to the right customer at the right time and tailoring your marketing efforts to meet each customer's unique needs and preferences. To do this, use your customer data to segment your audience into various buckets (cohorts, purchase history, preferences) and create personalized messages and offers based on what you know about them.
For example, if yours is a fitness brand, you might divide your audience into groups such as "weight loss," "muscle gain," and "general fitness.”
- A customer in the "weight loss" segment may be emailed with the subject line "5 Low-Calorie Recipes to Support Your Weight Loss Journey" and content tailored to their goal.
- When a "muscle gain" customer visits your blog, they might see prominently featured articles about protein-rich meals and strength training techniques.
- In your newsletter, you could recommend specific workout programs or supplements based on each customer's recorded preferences and past purchases.
This approach ensures that each customer receives content relevant to their fitness journey, increasing engagement and the likelihood of conversion.
2. Loyalty Programs
Again, retention is the name of the game here. With that in mind, develop loyalty programs that reward repeat customers and keep them coming back for more. Points systems, discounts, and exclusive access are just a few ways to incentivize continued engagement.
Amazon Prime is an excellent example of a successful loyalty program. While it's structured differently from traditional point-based systems, it's highly effective at encouraging customer loyalty and repeat purchases. This program works by offering a bundle of services that provide ongoing value to customers, encouraging them to shop more frequently on Amazon and engage with various Amazon services.
Prime members get free two-day shipping on millions of items, with same-day or one-day delivery in many areas. Prime Video offers access to a large library of movies, TV shows, and original content, while Prime Music is an ad-free music streaming service with a large catalog of songs. One of the brand's most popular offerings, Prime Day, gives members exclusive access to Amazon's annual sales event with significant discounts.
3. Customer Feedback
Give your customers a voice and regularly seek feedback to understand their needs and pain points. You can do this through surveys, focus groups, or reaching out directly to your loyal customers. From there, you can leverage these findings to improve your offerings and show customers that their opinions matter.
The popular US grocery chain Trader Joe's is well-regarded for its approach to gathering and acting on customer input. Trader Joe's has a dedicated product feedback system where customers can share their thoughts on specific items. This feedback is regularly reviewed and considered when making decisions about product offerings.
The company occasionally conducts focus groups and customer panels to get in-depth feedback on new products, store experiences, and overall satisfaction. Trader Joe's employees, especially store captains (managers), are encouraged to engage with customers directly, gathering informal feedback during shopping experiences.
4. Engaging Content
Create valuable, engaging content that addresses your customers' interests, challenges, and questions. This can include blog posts, how-to guides, social content, and informative videos. If you need to scale these efforts up, you can always strategically leverage AI-powered content tools or work with external content creators to expand your bandwidth.
HubSpot has become known for their comprehensive content marketing strategy, which includes:
- Blog posts: The brand blog covers a range of topics related to marketing, sales, customer service, and business growth.
- Comprehensive guides: They offer in-depth, downloadable guides on various topics like "The Ultimate Guide to Customer Service" or "How to Create a Social Media Strategy."
- Templates and tools: HubSpot provides free templates, calculators, and other tools that their audience can use in their day-to-day work, such as email templates or social media content calendars.
- Educational courses: Through HubSpot Academy, they offer free online courses and certifications on topics like inbound marketing, content marketing, and sales.
Tools and Platforms to Use for Customer Marketing
When you're ready to integrate tools for customer marketing, it's good to know a few tools that simplify the getting started process.
1. Customer Relationship Management (CRM) Software
CRM tools like Salesforce or HubSpot help you manage customer interactions, track engagement, and analyze data. These also help keep data organized as you dive into customer marketing efforts and provide a central hub for all the data you'll want to tap into as you develop customer marketing materials.
2. Email Marketing Platforms
Tools such as Mailchimp or Beehiiv can help you create, send, and monitor email campaigns to keep your audience engaged. They also have tools to help you with the personalization piece of the puzzle, so you're not sending a one-size-fits-all email to all customers. Again, this is another area you can strategically integrate AI writing tools to help with things like writing subject lines and email copy.
3. Social Media Management Tools
Platforms like Hootsuite or Buffer allow you to schedule posts, monitor social media activity, and engage with your audience directly. You'll still want to engage in real-time, but these tools help with planning and scheduling to lift some of the legwork of posting customer marketing content.
4. Analytics Tools
Google Analytics and similar tools provide valuable insights into customer behavior and campaign performance, helping refine your customer marketing strategies. By delving into your customer data, you can determine which marketing efforts work, which don't, and then make strategic decisions about resources based on that information.
Measuring Success in Customer Marketing
Tracking the effectiveness of your customer marketing strategies is crucial because, without the right data, you're flying by the seat of your pants and making guesses as you go. Dive into a few key metrics around your customer marketing efforts to clarify where to invest your resources over time.
1. Customer Retention Rate (CRR): CRR measures the percentage of customers who continue to do business with you over a specified period. With this figure, you can report how well your customer marketing efforts work to leadership.
2. Customer Lifetime Value (CLV): Calculate the total revenue a customer will generate throughout their relationship with your company. It's calculated by multiplying your customer value by the average customer lifespan.
3. Net Promoter Score (NPS): The NPS helps gauge customer satisfaction and loyalty by determining how likely they are to recommend your brand to others on a scale of one to ten. It's a great way to understand how your audience feels about your brand at any moment.
4. Engagement Metrics: Monitor metrics such as email open rates, click-through rates, and conversion rates on landing and sales pages to assess how effectively your campaigns resonate with your audience. You can find these within a tool like Google Analytics or on the back end of your email marketing platform, website hosting platform, or social media tools.
Customer Marketing Best Practices
Customer marketing is all about finding opportunities to engage and convert existing customers —again and again.
- Be a good seller to attract good customers: Each interaction with your customers is an opportunity to validate their choice to purchase from your brand. Consider how you can make the best impression at every customer touchpoint.
- Keep your brand in mind: Marketing messages and ads can cause a sensory overload. It’s imperative that brands make an extra effort to keep their customers' attention before and after the sale. Emails, newsletters, chat messages, retargeting campaigns, and special offers are some ways to stay in touch with your existing customers.
- Get personal: Personalization is critical to marketing success — 79% of consumers are more likely to engage with a personalized offer based on their past purchase behavior. Use personal information and behavioral data to personalize your offerings such as email customization, product recommendations and greetings Use personal information and behavioral data to personalize your offerings, such as email customization, product recommendations and greetings, and offers for special occasions.nd offers for special occasions.
Make customers feel part of something meaningful: Consumers want deeper connections, and building good, old-fashioned relationships is the best way to connect with them. Community forums, online and offline events are some avenues to let consumers connect with your brand.
Use Customer Marketing to Grow Your Business
The case for customer marketing is clear: the success rate of selling to existing customers is 60-70% compared to just 5-20% for new customers. Customer marketing is a critical component of any successful business strategy, and implementing the strategies outlined here can help foster brand loyalty, enhance customer satisfaction, and drive repeat business.
Use the right tools, measure your success, and continually refine your approach based on customer feedback and data. By incorporating these strategies and leveraging the right tools, you'll be well on your way to mastering customer marketing and reaping the benefits of a loyal and engaged customer base.
Common Customer Marketing FAQs
As you dive into customer marketing, you may have some questions. This FAQ section addresses common queries to help you get started.
1. What is customer marketing?
Customer marketing focuses on retaining and nurturing existing customers to increase loyalty, repeat purchases, and advocacy. It involves targeted communications, personalized offers, and loyalty programs to enhance the customer experience, encourage upsells, and gather feedback. The goal is maximizing lifetime value and turning customers into brand ambassadors.
2. What’s the difference between customer marketing and product marketing?
Customer marketing focuses on engaging and retaining existing customers to increase loyalty and lifetime value. It involves personalized communication, upselling, and cross-selling strategies. Product marketing, conversely, centers on promoting specific products or services to potential buyers. It includes positioning, messaging, and launch strategies to attract new customers and drive sales.
3. What are some notable customer marketing examples?
Apple's "Shot on iPhone" campaign, Coca-Cola's personalized name bottles, Spotify's personalized playlists, and Nike's Nike+ app for runners are notable examples of customer marketing. These strategies leverage personalization, user-generated content, and technology to enhance customer engagement.
4. What are some B2B customer marketing examples?
Microsoft's partner network program, Salesforce's Dreamforce conference, Adobe's creative professional community, and HubSpot's free CRM tools are interesting examples of B2B customer marketing. These are examples of brands aiming to provide tangible value to the customer beyond just selling a product.
5. How do you design a customer-driven marketing strategy?
A customer-driven marketing strategy focuses on understanding and meeting customer needs. Research your target audience, gather feedback, and analyze data to identify their preferences. Develop products and services that address these needs, create targeted messaging, and deliver value through appropriate channels. Continuously adapt based on customer insights and market trends.
