Are you leveraging your critical documents to enhance customer LTV?
At Impact, we’ve built our organization on helping our customers leverage quantitative and qualitative data; then couple it with coordinated execution to enhance their customer lifecycle. We help our partners objectively identify their customers, locate prospective customers that match their high lifetime value segments, increase awareness to those prospects, convert those prospects to customers, retain customers, and cross sell to customers.
As one can imagine, there are many wide ranging tactics and strategies that can be leveraged and tailored in these efforts. An often overlooked tactic within a retention or lifetime value enhancement strategy is leveraging statement or invoice data and communications.
It is critical that we think of statements and invoices (or even collection warning notices!) as marketing pieces. If a customer generates a statement or invoice, it means the hard work of identifying them, making them aware of your product(s) or service(s), and acquiring them as a customer has already happened. They trust you enough to have made a purchase or subscribe to your service! Assuming their experience was a positive one, there is a much lower transaction cost for them and for you in order to do business again. This is why it is critical to not waste that critical communication document.
While there are almost an uncountable combination of organizations which send out repetitive communications such as statements or invoices, we generally see strategies and tactics broken into two categories. The category delineation is generally based on how the end user purchases.
The first category are companies whose users are defaulted into repeated transactions. Those are organizations that offer “subscription” services such as insurance providers, waste and recycling management, home service providers, and financial service providers.
The second category are the companies whose users interact with ad hoc transactions. These organizations require a conscious decision on behalf of their customers for each transaction.
The strategies and tactics that can be leveraged within these two categories will be the subject of my next two articles. If planned and employed properly, they can provide benefit to both our customer and the end user by lowering the transaction costs of doing business together.