Could Crowdfunding Be The Magical Formula For Higher Customer Lifetime Value?

Information source #1 for trustworthinessWhile traditional advertising such as TV and newspaper ads and digital marketing such as sponsored links on Google help build brand awareness, they increasingly do not resonate with target audiences – especially with Millennials. And even with the explosion of review applications and sites like Yelp, word of mouth – recommendations made by friends, co-workers, or neighbors you know and trust – is still the most effective way to win new customers: 84% of consumers say they trust recommendations from family, colleagues, and friends about products – making this information source #1 for trustworthiness.

Word-of-mouth referrals create real value that is why companies spend approx. $2 Billion on word-of-mouth marketing with around 30% of that for food and drink brands. This type of marketing improves the effectiveness of marketing campaigns by over 50%. Over half of purchases inspired by social media sharing occurs within 1 week of sharing or favoriting and 43% of social media users report buying a product after sharing or favoriting it on Facebook, Twitter, or Pinterest. Word-of-marketing is the new black: Millennials ranked word-of-mouth as the #1 influencer in their purchasing decisions about clothes, packaged goods, big-ticket items (like travel and electronics), and financial products. Baby Boomers also ranked word-of-mouth as being most influential in their purchasing decisions about big-ticket items and financial products.

Word-of-mouth is the most valuable form of marketing – the one that consumers trust above all others and the one that is most likely to drive sales for your company, WHAT IS THE BEST WAY TO GET YOUR CUSTOMERS TO PROMOTE YOUR BRAND AND PRODUCT? Word-of-mouth is triggered when a customer experiences something far beyond what was expected – and good customer service is not enough: 39% of respondents say monetary or material incentives such as discounts, free swag or gift cards greatly increase their chances of referring a brand. Unfortunately,  there is no single formula for word-of-mouth success – but it starts with creating a culture that encourages your clients to consider themselves valued partners in your business. Keep reading this post

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Does loyalty matter to you?

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If you are a business owner or marketer, you should be familiar with terms such as churn, retention, and conversion rate. During the past decade, marketing and brand loyalty have become increasingly difficult since social media has given consumers a megaphone which has proved to be even more powerful than traditional marketing. One of the most successful viral campaigns is the ALS Challenge, with more than $100 million dollars raised in a 30 days period – between July 29 to August 29, 2015.

According to the Teradata 2015 Global Data-Driven Marketing survey, 38% of marketers say that their biggest 2015 challenge was improving customer acquisition and retention. Companies struggle with customer retention due to the increasingly competitive landscape. Keep reading this post