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Cheerful businesswoman discussing strategy with clients.<\/p>\n
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Without customers, your business can\u2019t exist. At least not for long. That\u2019s why marketers spend the bulk of their time drumming up ways to attract new leads. Growth marketers, too, create strategies to convert as many prospects as possible.<\/p>\n
However, they aren\u2019t satisfied with drawing leads in, getting the sale and onboarding them as customers. While these are great short-term goals, real growth happens when a company keeps those newly acquired clients happy. It\u2019s even better when those customers buy more and refer others. Word of mouth makes a marketer\u2019s job easier, while loyalty increases customer lifetime value.<\/p>\n
CLV is the fuel behind a company\u2019s growth. The more a customer purchases, the more revenue a business earns. To boost lifetime value<\/a>, marketers can encourage clients to buy more often or spend more at one time. Growth marketing strategies do this by continuing to nurture long-term customer relationships. Let\u2019s take a closer look at how these methods impact the lifetime value.<\/p>\n Think back to when you were learning something new. Did you understand everything right off the bat? Probably not. If you\u2019re like most people, it took some trial and error to get to the level of understanding you have today.<\/p>\n Growth marketers use a similar approach. They go in with an experimental mindset to discover how to fine-tune every stage of the customer\u2019s journey. These stages include one of the most crucial\u2014acquisition. You can\u2019t retain clients if you don\u2019t land them in the first place. But it\u2019s not uncommon for companies to struggle with less-than-stellar conversion rates.<\/p>\n Leads come in because they become aware of a company\u2019s shiny new object on the road. Yet convincing them to pick it up is challenging. Growth marketing strategies experiment with reassuring and persuading prospects it\u2019s OK to make the next move. \u201cOne of the best ways to improve conversion rates is to test different value propositions,\u201d notes my friend Chris Dayley from Smart CRO. \u201cIf you can find the right value proposition that resonates with a potential customer, you can usually increase conversion rates by 10% to 20%<\/a>.\u201d<\/p>\n Growth marketers use more tactical means to up conversions, too, tweaking call-to-action buttons on website pages, running A\/B tests with email content and retargeting leads based on their behaviors. The idea is to optimize the company\u2019s approach so fewer prospects drop out of the acquisition stage. If you can delight people at the beginning, it\u2019ll be much easier to nurture the relationship later on.<\/p>\n In hypercompetitive markets, what\u2019s to stop someone from thinking the grass is greener somewhere else? Think grocery stores, cellular phone services and insurance plans. It\u2019s difficult for consumers to distinguish these products and services over time. To them, the core offering is the same regardless of which company delivers it.<\/p>\n So why wouldn\u2019t customers stray based on price or some other convenience? Growth marketing strategies attempt to tackle this behavior by making things personal. You see this with grocery chain loyalty programs<\/a> that offer personalized savings. These exclusive discounts aren\u2019t for random products but for items each shopper typically buys. Online retail giants also use personalization through subscription services and product recommendations.<\/p>\n Essentially, they\u2019re building a relationship with each customer by showing they know them as individuals. Personalization also encourages repeat business by rewarding loyalty, and it can extend beyond purchases. Growth marketing strategies can include unique educational content, adding relationship value for the customer.<\/p>\n Whom are you more likely to trust? A person you\u2019ve just met or someone who\u2019s been by your side for years? Chances are it\u2019s the person you\u2019ve had countless conversations with and maybe even leaned on for support. Naturally, you\u2019ll be more skeptical of what a stranger says.<\/p>\n This human tendency helps explain why 86% of consumers<\/a> trust referral marketing. In fact, they\u2019re 50 times more likely to buy products their friends and family recommend. Companies don\u2019t have to work as hard to sway referrals since word of mouth is persuasive enough. The icing on the cake is that referrals\u2019 lifetime value is two times higher than that of customers who convert through traditional ads.<\/p>\n Growth marketing strategies recognize and reinforce the power of word-of-mouth advertising. Referral programs with incentives are common, but they\u2019re not the only worthwhile tactic. Recruiting clients for testimonial campaign videos is another. So is leveraging user-generated content<\/a>, which allows brand ambassadors to express their enthusiasm for a product or service. Letting delighted customers speak for the company often has a greater impact than what it can say about itself.<\/p>\n Marketers know customers with higher lifetime values add more to a company\u2019s bottom line. But since high-value customers usually don\u2019t start out that way, companies need to nurture every relationship to increase its worth. Growth marketing can accomplish this by discovering what\u2019s important to each customer while rewarding them for taking the next step.<\/p>\n<\/div>\nThey Optimize Conversion Rates<\/h2>\n
They Build Loyalty Through Personalization<\/h2>\n
They Bring In Valuable Referrals<\/h2>\n
Using Growth Marketing to Boost CLV<\/h2>\n