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Leveraging Omnichannel Marketing To Increase Customer Lifetime Value

Chukwudi Nwokike, Client Success Manager at Netcore Solutions gives us an understanding of omnichannel marketing’s significance to your business and how to leverage it for unique customer experience.

Read on to understand the various customer behavior habits on channels, the channels available for digital communication and the difference between omnichannel marketing and multi-channel marketing.

What is Omnichannel Marketing?

Omnichannel marketing is an approach that enriches customers’ online experiences, so they can perform an action on one channel and maybe complete it on another channel. As well as the customer is able to be engaged across multiple channels such as emails, SMS, browser, push notifications. These are usually the channels that are available to digital marketers.

The next thing is to consider the customer’s lifetime value. Customer lifetime value is basically how much a paying customer can give you with regards to your revenue throughout the course of their lifetime. For example, if a customer has a monthly service subscription with you, and they use it for 20 years for X amount, the customer lifetime value will be best estimated by multiplying X amount times 12 times 20 years.

And of course, because it’s backed by revenue, businesses emphasize customer lifetime value. As a business, you can overlook customer lifetime value. Customer lifetime value serves as a measure of your marketing campaigns’ success. It’s also a good measure for ROI because sometimes marketing campaigns do not give you immediate value. So the customer lifetime value is very important.

Customer behaviour on various channels

Giving an example of three pairs of people who behave differently across channels. Two sets of them spend less time on social media. They prefer desktop and laptop transactions to mobile app transactions.

They love reading notifications on their apps, but they hate marketing emails and they read SMS messages. The last set is heavy on social media. They use browsers because of storage space for their apps – maybe they have an Android phone with low storage space.

They love deals on the internet and they use their emails only after work hours. And you have the people under rights who are data heavy users on iPhones. They love apps and push notifications. They think email is outdated. They don’t trust SMS messages and they visit their brands websites once a month. So what we have here is three common personas of people.

Common digital communication channels

Each channel of communication for digital communications has its advantages and its disadvantages.

EMAIL

Email is cheaper compared to most channels. Your email can be lengthy. If it’s engaging enough, you can as well do conversion tracking. Using the right platform, it gives you detailed analytics and is available on either your browser or your mobile phone, but there are some disadvantages to email. Based on GDPR rules, you can’t buy a bunch of email addresses to send to people because it’s unethical and can lead to spam complaints.

SMS

SMS as a channel that is accessible to almost everybody especially in Nigeria, almost everybody has a mobile phone, the messages for SMS are usually attended to in a short time span, but there are disadvantages of SMS. First of all, the channel is quite expensive. You don’t get enough analytics if someone is on DND, the message doesn’t deliver and SMS is available only on the mobile device.

Browser Push Notification.

If you visited some popular websites like konga.com or Facebook website, where you land on the websites and the websites ask you to allow notifications. Now, when this is allowed, people can receive messages through their browser. So it’s quite cheap compared to most channels. It requires the two for four subscription, just the click of a button. Sometimes users will subscribe by mistake because it’s so easy. And it helps to bring people back to your website because it usually has to continue to link.

Website Messages

These are pop up messages on websites. If you go to most e-commerce stores, you are asked to subscribe or told about the deal. One advantage is that you can prompt your user to visit setting focus pages. You can reduce your bounce rate. For example I might land on your website and I might be a

Differences between Omni-Channel Marketing and Multichannel Marketing?

Most marketers use Multichannel Marketing to spread their brand message on as many channels as possible. Omnichannel marketing is used to deliver messages to your customers through their preferred channel. A multi-channel marketing has a channel based approach. Each channel is independent, new functioning with different analytics. So you see markets as they log into a different platform to check your email statistics, log into another one, to check their SMS delivery statistics another one to check their Facebook ads.

Multi-channel is all about the brand, trying to push a message, trying to spread the word as fast as possible while omnichannel is trying to give a smooth experience. Multi-channel focuses with getting new customers and creating awareness for the brand or new products, but omnichannel marketing has a strong focus, focused on conversions, upselling, and cross selling. And of course, as marketers, they always say that it’s cheaper to sell to an existing customer than to acquire a new customer.

Strategies to increase your customer lifetime value using Omni channel Marketing

The first thing is an onboarding series for adoption on a fresh transaction. Banks, e-commerce store, financial institutions or a service based company, the major thing is to get the person registered and to perform the first transaction.  What happens is a person visits your website and they see how they can download your app. With browser push notification channels, you can get the person to subscribe for these notifications when they visit the website for the first time so you have one subscription channel before your app is downloaded.  One major pin point for brands in conversion and customer lifetime value is abandonment. Cart abandonment is when somebody is trying to make a purchase and because of one issue or the other, they are not able to complete the purchase.

Wildcards abandonment is used in e-commerce stores. It can be considered to be any kind of user journey for your website. You might be having a service business where somebody is supposed to fill a form to be converted so you can market to the person. And in that case, if the person feels the format and doesn’t complete the process, that’s also a cart abandonment, These strategies can also be used to get the person back on board for your company. 

Another major thing is customer lifetime value is churn.  Churn is when a person basically stops using your brand. Churn could be an uninstaller of mobile apps for some people and for some brands, churn might be a loss of repeat business.

If Working with WSI to improve your Omnichannel marketing sounds appealing, click this link to get in contact with us now.

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