In my blog post last, I discussed how valuable your first party customer data can be to enhancing social media customer acquisition campaigns I outlined several reasons why channels like Facebook, Instagram, and Twitter are so important to any marketer’s customer acquisition campaigns, and how intelligently utilizing first party data can supercharge any marketer’s campaigns. If you haven’t yet read that post, I encourage you to start reading there for more discussion on the efficacy of social media marketing.
Yet when considering strategies for growing revenue, many marketers are so laser focused on gaining new customers that they don’t maximize the value of their existing customers. In most cases, it is less expensive for businesses to keep their existing customers than it is to acquire new ones. Also, it is imperative to remember that your existing customers are often more valuable. In fact, a recent survey cited that customer retention would be the biggest revenue driver for businesses in the next 1-3 years.
Having a strong customer retention marketing strategy is crucial for any business. It’s likely that most of your customers spend time on Facebook, Instagram, or Twitter, which is why it is so important to have these channels in the media mix for re-engagement. In this blog post, I’ll examine several approaches to maximizing your social media marketing customer retention campaigns by leveraging your customer or CRM data.
LEVERAGING YOUR CRM DATA TO IMPROVE CUSTOMER RETENTION
Your CRM data contains tons of valuable information about your customers and their history with your business – what products or services they purchase, how often they purchase, how much they spend, the last time they purchased, and so on. By filtering and sorting your customer data by these different variables, you can create targetable segments that you can use to test target audiences on social media channels. By segmenting and testing these audiences, you can find the best optimal retention strategies for your business.
Facebook, Instagram, and Twitter allow marketers to upload audience files (typically containing customer emails, IDFAs, or phone numbers) that are matched to users of the social platform. This enables you to directly market to segments of your customer base. To get started, here are some simple ways to segment CRM data for your social customer retention campaigns:
Date of Last Purchase: The purchase cycle is different for every product or service. If your product is typically replaced or repurchased every 12 months on average, it goes without saying that you don’t need to remarket to customers who purchased last week. Segment customers who last purchased 8, 10, 12, or 14 months ago. Upload these customer lists and create different audiences grouped by date of last purchase. By testing these different audiences against each other and comparing engagement and conversion rates, you’ll uncover the optimal times to re-market to your customers.
Number of Distinct Transactions/Transaction Value: The number of times a customer purchases your products or services and the value of these transactions are strong indicators of the potential lifetime value of any particular customer. Everyone knows the old 80/20 rule: 80% of business is generated from just 20% of customers. The 80/20 rule highlights the importance of keeping your most valuable customers. Look through your customer data and find the customers that have been most valuable. Immediately target the ones that have not purchased from you in a longer period of time than usual. These are valuable customers that you risk losing! You can target them with custom messages and special offers to bring them back in.
Products or Services Purchased: This may seem like a no brainer, but I’m surprised at how many ads I see for irrelevant products from companies that I’ve purchased. When you’ve determined the optimal time to re-engage a customer, be sure to serve only ads that display relevant offers, items, or services. There is certainly a place for upselling existing customers, but the upsell still needs to be relevant. Your existing customers will need more than just a reminder that you’re still around. Go beyond general brand messaging with targeting offers and product placements in your ads.
These are just a number of ways that you can dissect your customer data to enhance customer retention campaigns. Remember to always be testing, testing, and testing! The more audiences you test, the more you’ll learn about your customers. This is the key to managing successful customer retention campaigns on social media channels.
Social media channels offer marketers such extensive third party targeting capabilities, often to the point that they don’t take full advantage of their most indispensable first party customer data. By strategically leveraging CRM data, marketers can amplify the value of their customer acquisition and retention campaigns.
To learn more about how you can utilize your first party data to maximize your social media marketing campaigns, please contact us.
by Jackson Richards, Senior Yield Analyst