I’ve had a lot of cases recently of ‘wishing I’d come up with that business first’. There are so many web based companies who have made everyday search tasks easy, and in doing so, made a whole load of money. They’re known as the aggregators. Deliveroo, TaskRabbit, Urban Massage, Hustle, Treatwell; I’m in love with these companies. They have made my life easier as a consumer, but as someone who’s obsessed with data and customer strategies, they also fascinate me.
The data these guys are collecting is unreal, and they’ve the power to deliver some seriously targeted campaigns - yet all I have seen from many of them are simply acquisition and repeat purchase tactics. These are tactics that I occasionally recommend to my clients — ‘Recommend a friend’, ‘£££ off at sign up’, etc. — however, with no long term strategic objective, you risk devaluing both your product and your customer. It’s easy to end up with poor data quality from offers like these - I mean, unless you’re a goody-two-shoes, I’m sure everyone reading this would have given a fake email address in the past, just to get their hands on an offer. I have no doubt that they’re filling up the customer pot, but unless aggregators can do something cleverer with the data they collect, over time these customers will leak out of the other end, or just keep playing you at your own game.
So how do you fill the acquisition leak?
1. Slow it down and give us choice
Let the customer choose their experience, including how often they receive communications from you. Recognising a customer’s usage patterns can also help tailor how often and when brands should get in touch.
2. Test, test, test
Find the optimum way to execute and through which channel. Email is a great way of learning more from your customers and the content they’re craving. Test incentives and formats, it’s quick and easy and can help inform what your customer want without having to ask them.
3. Get personal
Personalisation is not just using a first name to get someone’s attention. Recommendations, geo tactics, behaviour based content and dedicated contacts are proven to enhance performance. Pact Coffee are incredible at this and they even carry their tactics through to their brochures.
4. Change the performance measure
Is obtaining more customers the best measure of success? Average customer value tells us so much more about our marketing performance than how many are now on the base. Known customers are also far easier to convert if you can get it right.
Acquisition is still of course important but only if you’re obtaining quality data. If you’re going to incentivise data capture then a decent validation tool is essential.
5. Get the right CRM tools
All of the above, becomes far easier if you have the right tools in place. Tools that help automate not only emails, but your content and data too, after all, it’s the customer in charge now so it’s less about campaigns and more about giving them what they want, when they want it. The right technology stack can increase ROI substantially.
eConsultancy reports that, in a survey of around 1,000 marketers, most were focused on acquisition much more than retention - despite 82% agreeing that retention is cheaper. The Next Web also argue that, on average, only 1.5% of acquisition efforts result in a first-time purchase.
I firmly believe that by trialing just a few of the points listed above, aggregators could considerably increase their retention and improve ROI. If you find out you don’t need an offer there’s some pennies saved and if there’s more value in your current pot then there’s some extra revenue saved.
If you work for an aggregator then let’s talk. I love what you do, and what’s more, I know we can help you deliver more cost effective marketing.
If you want proof? We’ll even throw in a quick CRM health check for free.