Described as the “Most highly anticipated slide deck in Silicon Valley”, every year Mary Meeker releases her slideshow outlining the Internet trends to watch out for, for the coming year.
You can read all 333 pages of the full slide deck, or check out the top eight takeaways for marketers on cmswire.com, or simply read my #1 key takeaway below.
For me the most interesting part of the full report is from pages 28 – 35, which highlight that customer acquisition costs are rising, and talk around the need for marketing to be more efficient and more effective.
None of this is ground breaking, but it does shine a light on something businesses and marketers like to push into a dark corner of the “too hard” basket – taking the total cost of customer acquisition into consideration along with the total cost to serve and the opportunity to grow that customer in the future.
With increased costs to acquire comes less opportunity to reach more people, so why expend limited resources trying to get a customer that doesn’t pay back these costs over the course of its interaction with your company?
As a marketer, having visibility over the service costs and ongoing sales opportunities of customers makes me clap my hands in excitement – finally we have a starting point for what a good customer looks like, and equally, what a bad customer looks like.
Instead of being in the dark and being told that the product or service is “for everyone”, and “there are no competitors” and “just bring us leads”, we can start to refine where our efforts are placed, and start to produce real, tangible results – not only for new customers, but also for how to grow up or grow out, existing customers.
The implications for brand marketing and content marketing are equally exciting.
Despite rising costs meaning less resources to splash around, the upside is that businesses will be forced to be authentic, and focus on what their brand stands for, and for who. Well gone are the days of “say and spray” in content marketing, small and focused will trump big and broad, and those that truly appreciate and invest in their customer experience will win.
The first step is to understand who your existing customers are – the A’s – they deliver above average revenue per year, they cost below average to service per year, the B’s (above average revenue, cost above average to service), the C’s (below average revenue per year, cost below average), and the D’s (below average revenue per year, cost above average to service).
Then we can work out a plan to better manage each group; how we can find more A customers from the marketplace, how we grow more of your customers into A’s, and how we can lift the average revenue per year, and decrease the cost to serve through effective customer experience programs.
I’ve done this before, let me help you do it before your competitors do.