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Using customer lifetime value (CLV) for ecommerce success

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30-second summary:

  • Focusing on CLV as a topline metric has a significant impact on a company’s bottom line. Despite this, one UK study found that only 34% of marketers surveyed were aware of the term “customer lifetime value” and its implications.
  • In order to make use of the wealth of data that’s been collected, you need a CLV model that utilizes machine learning methods to make predictions.
  • As AI becomes more rooted in ecommerce, the gap between the capabilities of retailers utilizing AI vs those without it will grow too wide for a company without AI to stay competitive.
  • Write openly and conversationally; address your customers like living, breathing people, and you’ll keep them coming back.

Exponea is a customer data and experience platform with predictive analytics capabilities. They work with many notable online retailers including Sofology, FitFlop, and Benefit. Exponea’s recently published white paper, “The Formula for E-Commerce Success,” highlights the role of customer lifetime value (CLV) in keeping acquisition costs down and improving overall ecommerce success.

The 38-page report provides a simple formula that retailers can use to determine CLV, focuses on why this metric is important for growth and customer retention, and provides an ecommerce optimization guide which drills down into the specific ways that retailers can improve customer retention and conversions.

Content produced in collaboration with Exponea.

How is customer lifetime value useful to marketers?

Customer lifetime value represents a customer’s value to a company over a period of time.

The formula for determining the lifetime value of a customer is simple: average annual customer profit multiplied by average duration of customer retention.

Simply put, focusing on CLV as a topline metric has a significant impact on a company’s bottom line. Despite this, one UK study found that only 34% of marketers surveyed were aware of the term “customer lifetime value” and its implications.

Here are four ways CLV can be useful for marketers.

  • CLV helps inform what’s appropriate to spend on customer acquisition. Figuring out if you’re making money in the long run, versus the short term, can help you mitigate costs and allocate your marketing dollars appropriately.
  • CLV allows you to segment customers based on value. And segmentation allows for a personalized experience, which many customers now expect.
  • CLV is key for long-term company growth. CLV helps you focus on retaining customers by demonstrating their total value, thus motivating you to improve the overall customer experience.
  • CLV is an important learning process. Determining your CLV forces you to think beyond individual conversions or sales, evaluating the entire customer journey. This can help inform everything from how you reach out to new prospects to how you manage the sales process, to improving customer retention by streamlining your customers’ experience.

Data unification is critical for determining CLV

A key challenge that many companies face when assessing CLV is siloed or fragmented data. This can be a symptom of rapid company growth, complex technology stacks, or even a reflection of internal company culture—if each department operates independently toward certain goals, data can become fractured.

Exponea writes, “without unified customer profile data, it’s nearly impossible to get the sort of actionable results you want. In order to make use of the wealth of data that’s been collected, you need a CLV model that utilizes machine learning methods to make predictions. And that’s just not possible with siloed data.”

Data fragmentation is exacerbated by the fact that today’s customer makes purchases on multiple devices. This makes it difficult to glean meaningful insights from the various data streams. The use of a main dashboard which synthesizes data from multiple sources (i.e. a customer data platform) is critical for retailers who don’t want to be left behind compared with industry leaders who are taking a forward-thinking approach to data unification and analysis.

Another issue that companies face regarding data management and unification is a lack of in-house expertise.

Per Exponea, “Many companies who have not yet begun tracking CLV are dealing with a lack of qualified personnel to follow the data and produce actionable plans based on it. This, coupled with the need for an in-house dashboard for qualified personnel to use, creates a strong barrier to entry.”

Using customer lifetime value optimally

Once a company has addressed the above issues — namely, all customer data is in one place, you have a main dashboard with predictive analytics capabilities to synthesize and communicate this data, and experienced personnel to monitor everything — you can move on to leveraging CLV.

CLV can be used to:

  • Improve customer acquisition and retention
  • Prevent and reduce churn
  • Plan your marketing budget
  • Measure the performance of your ads
  • Acquire higher value customers
  • Secure future VIPs
  • Practice value-tier segmentation

The report concludes with some concrete steps that retailers can take to optimize conversions and increase a customer’s CLV. This section is extremely tactical, emphasizing customer retention over customer acquisition.

Exponea writes, “It’s not just about selling anymore; it’s about building a place for your customers to return to, again and again. Convert your first-time purchasers into repeat shoppers, and move them along the path to VIP.”

The ecommerce optimization guide provides details on four technological tactics that online retailers must focus on to improve customer retention. At the top of the list? Personalization.

The four tactics include:

  • Delivering personalized customer experiences
  • Automated email campaigns
  • Value segmentation
  • Converting customers into VIPs

Says Exponea, “As AI becomes more rooted in ecommerce, the gap between the capabilities of retailers utilizing AI vs those without it will grow too wide for a company without AI to stay competitive.”

There is much more information available in the e-book, including tactics focused on improving authenticity (and integrity) in communication between the retailer and the customer. Examples of authenticity include what to do—and what not to do. “Write openly and conversationally; address your customers like living, breathing people, and you’ll keep them coming back,” explains Exponea.

To learn more about how marketers can use CLV, check out the full white paper, The Formula for E-Commerce Success.

The post Using customer lifetime value (CLV) for ecommerce success appeared first on ClickZ.



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Marketing Strategies

Black Lives Matter.

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Posted by SarahBird

The time to use our platforms and privilege to speak out against the deep racism that plagues our society was years ago. I regret staying silent in those moments. The next best time is now. Silence is harmful because it prioritizes the comfort of those of us who benefit from racist policies at the expense of those exploited and victimized by them.

It’s not enough to simply “do no harm” or “not be racist.” That well-trodden path has produced the same brutal results again and again. At Moz, we’re moving to a higher standard. The creation of a more just world requires us to be loudly, unceasingly anti-racist.

We must acknowledge that human rights exist beyond politics.

We must hear and validate the lived experiences of people of color and amplify their voices.

We must show up.

We must reinforce, loudly and often, that Black lives matter.

This is an uncomfortable conversation for most of us. We’re afraid of saying the wrong thing, offending people, losing relationships, jobs, customers, and in some cases physical safety. By design, white supremacy has made it uncomfortable to speak out against white supremacy. Fearing angry backlash for speaking out against the risks and injustices people of color face every single day only serves a system designed to keep us silent — a system that has been shaped over centuries to oppress and exploit people who are not white. At Moz, we will practice the courage to speak out and show up for love and justice. Maya Angelou said wisely, “Courage is the most important of all the virtues, because without courage you can’t practice any other virtue consistently.”

Today, we express solidarity with Black people grieving the losses of David McAtee, George Floyd, Breonna Taylor, Ahmaud Arbery, and many, many others. We share and honor the outrage rippling through our country. We stand with you and we stand for justice and love.

We want to amplify the signal of inspiring people doing powerful work. Activists like Rachel Cargle and her work on The Great Unlearn project. Resources like the Intentionalist, an online directory that allows you to discover and patronize diverse local businesses in your community. Ijeoma Oluo’s So You Want to Talk About Race illuminates the harsh reality of police brutality, inequitable mass incarceration, and other lived experiences of Black people in the United States and gives us tools to talk about race and racism. EmbraceRace is an organization focused on helping parents, teachers, and community leaders raise children to think and act critically against racial injustice. Ibram X. Kendi’s How to Be an Anti-Racist asks us to think about what an anti-racist society might look like, and how we can play an active role in building it. Ross Gay’s poem, A Small Needful Fact, is a powerful memorial that says so much in a few beautiful words. I invite everyone to re-read or listen to Martin Luther King Jr.’s full Letter From a Birmingham Jail. His statements and questions are heartbreakingly relevant today. May you be moved beyond thought to action, as we are.

Be well and love each other.

Editor’s note: We’re disallowing comments on this post to make sure the focus remains on the problem at hand: the indiscriminate mistreatment and murder of Black people in the United States. In addition, we will be forgoing our typical publishing schedule to make space for the more critical conversations that need to be held.

Sign up for The Moz Top 10, a semimonthly mailer updating you on the top ten hottest pieces of SEO news, tips, and rad links uncovered by the Moz team. Think of it as your exclusive digest of stuff you don’t have time to hunt down but want to read!





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9 Ways to Crush the End of a Blog Post

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When I graduated from college a few years ago, there were a couple of lessons that stuck with me.

First, as a journalism student, I was taught to never write a conclusion for an article.

While this became a habit, it’s something I’ve had to unlearn as a marketing writer because you need to write a conclusion in your blog posts.

Second, in my screenwriting class, I learned that every sentence you write should either move your story forward or reveal information.

As a blog writer, this second lesson is the standard I hold myself to. With conclusions, it’s no different.

Conclusions are a necessary element of your blog posts because they guide your reader on what to do next.

Below, let’s review the top ways to absolutely crush the ending of your blog post.

1. Write a summary.

Unlike a journalism article, when you’re ending a blog post, writing a summary is a great way to go.

That’s because your reader most likely forgot a lot of the points you made throughout the piece.

A summary conclusion should list the key takeaways from the article. Keep in mind that you shouldn’t just reiterate your points, but draw actionable conclusions that will educate your audience.

Additionally, it’s important to remember that your summary conclusion shouldn’t contain any fluff. That means all the information should be relevant and tie everything together.

2. Ask a question.

When I write a blog post, I try to remember that it shouldn’t feel dictatorial.

In fact, it’s quite the opposite. Blog posts should feel conversational. It should be informative, educational, and display empathy with your readers.

One way to do this is by asking your reader a question. You can ask them for their opinion and tell them to comment below. Note that you should only use this tactic if you have comments enabled on your blog posts.

Also, I think it’s important that your questions are specific. Readers are more likely to answer a specific question instead of, “Tell me your thoughts below!”

3. Include a call-to-action (CTA).

After reading a blog post, most users are thinking, “Okay, now what?”

This is why the end of a blog post is a great place to provide actionable solutions in the form of a CTA.

Your CTA could be a content offer, promote your product or service, or ask users to subscribe to your email newsletter.

Either way, every time a reader makes it to the end of a blog post, you should encourage them to continue consuming your content.

4. Inspire your audience.

When I read a blog post or am scrolling through social media, I want to feel inspired.

In fact, sometimes a simple blog post gives me an idea of how I could implement a new habit and inspires me to get started.

So, how can you inspire your audience?

At the end of your blog posts, you should challenge your readers to do something. For instance, if you’re writing a fitness blog, you can challenge readers to write a new grocery list.

Giving people a goal can inspire them to take action, download your content offer, or continue reading your blogs.

5. Direct your readers to do something.

You’ve probably noticed the pattern with the tactics I’ve listed above. All of them have to do with guiding your readers on what their next steps should be.

Whether you summarize your article or ask a question, the end of your blog post should direct readers on what to do next.

Sometimes it can be as simple as asking them to share the post or comment below. You’d be surprised how many people will do something just because they’ve been asked to do it.

6. Provide links to another blog post.

Have you ever been watching a video on YouTube, and then noticed a video in the recommendations on the side that you want to watch?

I don’t know about you, but the recommended videos are the reason I’m usually on YouTube for hours at a time.

When a reader finishes your blog post, we want to enact the same effect.

To do that, you can provide a link to another blog post of yours.

In a previous blog of mine on product knowledge, I ended the post by linking to one of our ultimate guides.

Here’s what that looked like: “Want to learn more about new hire training for salespeople? Check out our ultimate guide.”

7. Start a discussion.

Not to reiterate, but your blog posts should be engaging and start a conversation.

At the end of your blogs, you can encourage this by asking a discussion question.

Sometimes this comes down to the topics you’ve chosen to write about. Not all blog posts will warrant a discussion question, but if it does, it’s a great way to end a post.

8. Produce a teaser.

Teasing future content is a tactic that I see used on YouTube or podcasts a lot. However, I think it has its place in blogging as well.

If you’re on a writing schedule and you know what blog posts are coming up, you can end your blogs by promoting future content.

You can tell readers what’s coming next and what to look out for, so you can entice them to come back. Sometimes teasing future content can even inspire readers to subscribe to your blog.

9. Answer who, what, where, when, why, and how.

At the end of your blog post, you want to tie it up with a bow. That means that you should’ve answered all the questions a user might have.

To do this, think about the who, what, where, when, why, and how.

You can end a blog post by summarizing what the topic was, why it’ll impact the reader, what they should do with this information, and how they can implement it in their daily lives.

Keep in mind that this information should be personalized. It should be targeted to your buyer persona and answer why they should care.

Now, I know you’re probably wondering, “Well, how are you going to end this blog post?”

I’m going to cheat because I’m going to use several tactics I listed above — summary and CTA.

First, I want to remind you that it’s important to keep in mind how the end of a blog post will impact your reader’s journey on your site.

Ultimately, you want readers to continue on your site or engage with your brand, whether they read another blog post, share the post on social media, or download a content offer.

Now, I want to let you know about a great course from HubSpot Academy that’ll help you improve every element of your blogging strategy. You’ll learn how to craft a blogging strategy, and create quality blog content that your audience will love.





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Marketing Strategies

Top 5 West Hollywood News Websites To Follow in 2020 (City in California)

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Top 5 West Hollywood News Websites
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1. WEHOville | News

West Hollywood, California, United States About Website WEHOville.com, the only West Hollywood website operated by professional journalists, publishes stories about the news, politics, events and personalities that make WeHo such a great place to live. Frequency 10 posts / week Website wehoville.com/news-and-features
Facebook fans 8.4K ⋅ Twitter followers 5.9K ⋅ Social Engagement 6 ⋅ Domain Authority 59 ⋅ Alexa Rank 354.8K View Latest Posts Get Email Contact

2. WEHO TIMES | News

WEHO TIMES | News West Hollywood, California, United States About Website WEHO TIMES is a award winning online news source covering the life, times, politics, news, people, places, culture, art, nightlife and everything connected to West Hollywood, CA. Frequency 1 post / day Website wehotimes.com/category/news
Facebook fans 3.9K ⋅ Twitter followers 1.8K ⋅ Social Engagement 107 ⋅ Domain Authority 42 ⋅ Alexa Rank 2.2M View Latest Posts Get Email Contact

3. CBS Los Angeles » West Hollywood

CBS Los Angeles » West Hollywood Los Angeles, California, United States About Website Get West Hollywood News, Sports, Weather, Traffic and the Best of LA/OC from CBS Los Angeles. Frequency 1 post / day Website losangeles.cbslocal.com/tag/..
Facebook fans 870K ⋅ Twitter followers 230.3K ⋅ Instagram Followers 105.3K ⋅ Social Engagement 1.8K ⋅ Domain Authority 92 ⋅ Alexa Rank 2K View Latest Posts Get Email Contact

4. Patch » West Hollywood

Patch » West Hollywood West Hollywood, California, United States About Website The best breaking news, stories, and events from the Patch network of local news sites. Local news and events from West Hollywood, CA brought to you by Patch. Frequency 4 posts / day Website patch.com/california/westhol..
Facebook fans 2K ⋅ Twitter followers 4.1K ⋅ Domain Authority 90 ⋅ Alexa Rank 232 View Latest Posts Get Email Contact

5. KTLA » West Hollywood

KTLA » West Hollywood Los Angeles, California, United States About Website L.A.’s Very Own, KTLA is Southern California’s source for Los Angeles-area breaking news, streaming live video, traffic and weather in L.A., Orange and Ventura counties, plus the Inland Empire and beyond. Frequency 4 posts / month Website ktla.com/tag/west-hollywood
Facebook fans 1.4M ⋅ Twitter followers 811K ⋅ Social Engagement 7.2K ⋅ Domain Authority 82 ⋅ Alexa Rank 14.1K View Latest Posts Get Email Contact

The post Top 5 West Hollywood News Websites To Follow in 2020 (City in California) appeared first on Feedspot Blog.



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