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B2Me Marketing: What’s it all about

B2Me Marketing: What’s it all about

B2Me Marketing – helping people make better choices and get more enjoyment from whatever they buy.

As consumers, we are constantly faced with the challenges of too many choices and too much information broadcast across a cluttered and fragmented media landscape. Any attempt to guide people through their customer journey is totally useless if we can’t deliver the right message at the right time.

This short video explains how personalization can play en important role by increasing the relevance of your marketing messages. Personalization helps your customers make the informed choices that are best for them. In doing so, they will get more enjoyment out of everything they buy from you.

 

VIDEO TRANSCRIPT

In the previous episode, I explained how marketing automation platforms can help you to better understand, interpret and use customer data that flows from your customers’ physical and digital behaviour.

And that with a relationship-marketing approach called B2Me, you can leverage behavioural customer data to create greater relevance and increase the impact of your marketing communications.

I also mentioned that with a B2Me marketing approach, you can help you customers to make better choices, showing them the products and services that are right for them, and helping them get more enjoyment out of everything they buy

But what exactly is B2Me™ marketing

D + E + C = B2Me

B2Me marketing is helping your customers make the right choices and get the most enjoyment out of everything they buy by leveraging customer data, your expertise and highly personalized and relevant content.

Many marketers struggle with the challenges of moving from the theory of relationship marketing to actually implementing a truly customer-centric strategy.

Schooled in the art of mass marketing, they’re challenged when comes time to make the switch to the new reality of the empowered customer, in control of the sales process and who don’t want to be told what they should want or buy.

We are all the same: we’re all unique!

Even though deep down, we’re all the same, we are also incredibly diverse and unique: unique in our needs and in the context of those needs, in our goals and motivations, in our physical attributes, our personality traits and so on.

These more or less subtle variations are what make humanity so richely diverse, but they also create a huge challenge for modern marketers who struggle to make their message relevant.

Universality versus personalization

While traditional mass marketing has always focused on creating a universal message that resonates with all customers, relationship marketers have a very different vision.

They recognize that the incredible diversity of human needs and priorities make a universal message a utopia at best, and more than likely a very real barrier to growth and success.

In reality, customers choose product or service for different reasons and use them with to achieve different goals.

So as brands insist on creating more and more variations of a given product, in order to please increasingly smaller niche markets and segments, complexity explodes. And we end up with 12 flavours of Special K and 20 flavours of Clover Leaf tuna. Or a choice of 250 different mouses for your computer. Or 2400 types of makeup at Shoppers Drug Mart. Or 2 million singles on EHarmony. It’s just too much.

The right choice for me

With that in mind, how do you help your customers make the choices that are right for them? How do you help them to get the most enjoyment out of whatever they buy?

How do you adapt your message to each customers unique reality? How you deliver a message that resonates with your customers, that touches their heart and their spririt?

B2Me Marketing means personalizing a message by placing the product, service or experience in the specific context of each customer’s needs.

Data, domaine expertise and personalized content

It starts with customer data from your marketing automation platform, as well as transactional and behavioural data.

This data is combined with your internal and external product and category expertise in order to map the right product to the right customer.

These two elements are then combined to create personalized content that helps each customer understand why a given product is right for them. To discover the customer experience that matches their needs and goals. To understand the how and the why behind a given choice.

But before starting down the path towards relevance and customer centricity, ask yourself these three important questions:

First of all – Who are your typical customer archetypes – your personas – that are defined by their behaviour, their goals, what they wish to achieve and with whom they wish to do so.

Secondly– What are the key attributes or dimensions that shape each customer archetype,  and that will impact the relevance of your message

Thirdly– Which key variables or datapoints are needed to customize your message to make it relevant to each archetype or persona? And of course, where will you get that data. Once again, marketing automation provide at least part of the answer.

With these things in mind, you are now well on the way to better understanding what your customers need, what they’re looking for and how to talk to them in a relevant way.

But where should you start?

The challenge becomes how to put all this into action. And to justify the investment and the effort. Where should you start? Where are the immediate gains and low-hanging fruit that will help you achieve short term positive ROI?

Sounds like a challenge. But in reality, not so much. Personalization and marketing automation are very powerful relationship-building tools that help you to quickly increase your customer and prospect conversion rates.

In the next episode of What’s this all about? I’ll show you how to easily increase your impact and your campaign ROI with an effective customer nurturing program.

Related content:

ROI and Effectiveness – Do You Truly Understand the Difference?

ROI and Effectiveness – Do You Truly Understand the Difference?

Do you understand these common metrics?

Because of the tremendous economic pressures since the downturn, and the need for marketing accountability, ROI has now become Marketing’s new Holy Grail. However, effectiveness and ROI are not synonymous, though many marketers perceive it to be so.

ROI is the efficiency with which a marketing activities produces a result. ROI calculates the revenue generated for each dollar invested.

Efficiency and effectiveness – what’s the big difference?

The fact that a given media, or marketing activity is efficient – meaning that the cost per dollar of sales generated is low – doesn’t automatically make this media or activity a better choice relative to others with a lower level of efficiency. Obviously, you want both. But you can’t always get what you want!

Read More

Do you and your customers speak the same language?

One of the guiding principles of B2Me is to use simple language and familiar terms in order to clearly communicate what you need to say to your customers. Get rid of jargon and marketing speak — Make it a priority!

American insurer Cygna clearly understands the importance of simple and effective communication. The company prides itself on systematically simplifying the language it uses in its marketing communication and more important, in its contact between their employees and customers.

If you’re trying to persuade people to do or buy something, it seems to me you should use the language they use every day. -David Ogilvy

To help achieve this goal, they created a program for first-line staff that dictates what words should be used to describe insurance concepts, products, terms and conditions. The program is called “Let’s be clear”, and is designed to help employees “translate” the obscure language of the insurance industry into plain English.

Here are a few examples: “you” instead of “claimant”, “process your claim for payment” instead of “adjudication” and “start date” instead of “activation”.

The goal is to make customers feel comfortable, to create a climate of trust and allow the customer to feel valued – not diminished by the use of language they don’t understand.

Cigna even created a website that provides a dictionary of common insurance terms and their translation into plain English in order to be clearly understood by a customer.

At the end of the day, it simply a question of respect for “me”, the customer. Do you speak the same language as your customer? Or are you forcing your customers to speak yours?

Five benefits of B2Me™ on RetailExperience.com

There’s an interesting article on B2Me™ on the Retail Experience Blog, by Paul Flanigan, former director of brand communications for Best Buy.
Here are a few lines from his post:

We have all heard B2B (business to business) and B2C (business to consumer). But this has now evolved into B2ME. The simple definition is the practice of marketing to the individual based on the desires of that individual. It’s not about closing a sale, it’s about developing a relationship with every single unique individual.

This doesn’t (or shouldn’t) seem like a new way to market. We have been doing this all along, right? Well, the advent of personal technology has quite a bit to do with it. Marketing has had to catch up with individuals who are mobile, savvy, and in control of the sales cycle in pretty much every type of buyer/seller relationship.

Read more on RetailExperience.com

How much is a customer worth? Probably more than you think!

How much is a customer worth? Probably more than you think!

When you look at marketing from a purely transactional perspective, you often lose sight of an important dimension: the long-term value of a customer. Or more precisely, the cumulative net revenue that a customer provides during the “lifetime” of the relationship between the customer and a business, or a brand.

This transaction perspective focuses on the immediate sale of good and services through marketing campaigns of all nature. From that point of view, the customer value is equal to the amount of the sale produced as a result of that campaign. Transactional marketers will work to reduce the cost per transaction in order to maximize short term revenue. Nothing wrong with increasing revenue… far from it. But this narrow vision often forces us to make choices that as purely short-term.

More often than not, when the focus is purely on short-term revenue, marketers will discard any initiative that produces a customer acquisition cost that is deemed to high when compared to the value of the transaction, without taking into account the future value of a customer. Such decisions do not take into account differences in customer quality, potential loyalty and future purchase value. Why pay ten dollars to sell a five dollar item? And yet…

Customer lifetime value

From a relationship marketing perspective however, we will take into account the actual value of a customer — what is known as Customer Lifetime Value (CLV) – in order to better understand how much we can afford to invest to acquire a new customer with whom we can engage and maintain a long-term relationship over the course of several years.

In fact, when you think about it, this value is often much greater than we suspect. Calculating CLV is based on three variables: gross revenue per average transaction, average frequency of purchase and the average lifetime of a customer relationship. Regardless of your industry, when you start to look at what a customer is worth, you quickly understand why it is so critical to retain customers and increase loyalty.

In the infographic show below, KissMetrics looks at the lifetime value of a Starbucks customer. That Grande Latte you buy from the little mermaid from Seattle starts to look even more expensive than you ever imagined. According to KissMetrics, the average lifetime value of a Starbucks customer is $14,099 over a 20 year period. This value is based on an average purchase value of $5,90 and a purchase frequency of 4,2 purchases per week. Now imagine the coffeeholic who shows up twice or three times a day, at break time, for lunch or an afterwork snack. The value goes through the roof!

Acceptable acquisition cost

Rather surprizing isn’t it? So now, if I ask you how much Starbucks could afford to spend in order to acquire and retain a new customer, you would start to see that it is much more than the cost of a single Latte. Instead, you would use the CLV as a basis to set this amount. All of a sudden, you would probably be tempted to invest a little more. Now imagine you’re Second Cup — how much would you spend to win over a Starbucks customer?

Now think about your own customers. What is the CLV of your average customer? Better yet, forget the Average Joe. Think about your best customers—the top 15% to 20%. Your most active, loyal and profitable customers. Now thank about what you are doing to keep them loyal… If your answer is nothing, what are you waiting for? It’s a matter of survival!

This infographic was created by KissMetrics

How To Calculate Customer Lifetime Value
Source: How To Calculate Lifetime Value

Where all those choices got started… according to Malcolm Gladwell

Where all those choices got started… according to Malcolm Gladwell

As a fan of all things Gladwell, I would like to share with you this excellent video produced by TED TV that chronicles the history of how Howard Moskowitz changed the way we shop for groceries — a change that led to the avalanche of choices that we face in our lives, day-to-day. Presented in typical Gladwellian style, this is a fascinating tale of innovation that began in the ’80s.

The unexpected impact of choice on customer satisfaction

The unexpected impact of choice on customer satisfaction

 

In this video from TED TV, american social psychologist Barry Schwartz, author of The Paradox of Choice explains the negative impact of choice – or more precisely, the impact of too much choice – on our level of satisfaction with the things we buy in our day-to-day lives.

Unrealistic expectations, or persisting doubt over the choices we make: these are the reasons why we must limit the number of products and services we offer our customers. By personalizing content and product recommendations, B2Me allows us to reduce the number of products suggested to a limited set or a single item that best suit the customer’s needs… One customer at a time!

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