Fostering the closer relationships and superior experience that lead to customer loyalty isnít good just for a brandís reputation; itís good for its bottom line. It can have a significant impact on a companyís continued profitability, with repeat customers driving sales as well as assisting new customer acquisition. And yet organizations on the whole are slow to wake up to the bottom-line benefits of attracting customers for life, and even slower to allocate the resources necessary to do so.
To shed light on this issue, Forbes Insights, in association with Sitecore, conducted a survey of 312 senior executives based in North America in July 2014. The respondents represented a broad range of industries. All companies represented had at least $500 million in revenue; 30% had $1 billion to $9.9 billion in revenue; and 19% had $10 billion or more in revenue. In-depth interviews with senior executives and experts add context to the data.
Key findings included:
Customer Lifetime Value (CLV) metrics are recognized for their value in strategic planning for acquisition, retention, and revenue - but slow on the uptake
Organizations may recognize the importance of a strategic approach to keeping customers for life - but C-level marketers and technology executives are often left out of the process
Developing a single customer view is a top organizational priority - technical challenges including a multiplicity of systems, fragmentation of data, and the resulting silos slow progress
Silos and a lack of integration among teams also pose challenges - hindering the delivery of seamless, personalized customer interactions