The Secret Ingredient for Customer Lifecycle Marketing? Community Management.

A recent benchmarking report from Demand Metric on Customer Lifecycle Marketing illustrates the impact of aligning marketing efforts around a customer journey model. The report also illustrates a number of blindspots that are derailing Customer Lifecycle Marketing efforts.

The missing ingredient? Community Management.

First, highlights from the report (direct quote):

The analysis of this study’s data provides these key findings:

  • The study found that less than 20% of organizations are currently marketing across the entire customer lifecycle.
  • Participants spend twice as much of their marketing budgets on acquiring new customers as on retaining existing ones. (Yet most of their revenue comes from existing customers!)
  • Almost 90% of the study participants indicate that marketing currently owns the understanding and management of the customer lifecycle.
  • Of the lifecycle stages – Awareness, Consideration, Purchase, Retention and Advocacy – Awareness enjoys the greatest clarity of ownership, with marketing owning the stage 88% of the time. Retention is most fragmented, with few organizations defining clear ownership of this stage.
  • The Awareness and Consideration stages enjoy “adequate” or “ample” levels of investment for over 70% of study participants. Retention and Advocacy both fall at the “minimal” to “none” level of funding for 55% of study participants.
  • The greatest benefit to executing a customer lifecycle marketing strategy is greater customer engagement.
  • The greatest challenge to marketing across the customer lifecycle is understanding customer content needs.
  • 72% of strategy adherents are experiencing a revenue lift from customer lifecycle marketing.
  • Over three-fourths of participants plan to increase their commitment to and investment in customer lifecycle marketing.
PardotDemandMetric-Marketing-Effectiveness-by-Journey-Stage-Dec2015

Excellent summary graph from MarketingCharts.com

Clearly Customer Lifecycle Marketing is incredibly valuable when all stages of the lifecycle are addressed. So what is the problem? Based on my direct experience and years of studying the intersection of marketing and online community, I would assert that building meaningful relationships at scale is still an undeveloped function in the majority of most organizations. Further, as the data from the report shows, the “ownership” for customer retention is scattered among many departments. Add to the mix the eternal debate about “who owns social / community” and things get even more messy.

So what is a modern marketing organization to do? Consider three things:

  1. Community Drives Customer Lifecycle
    A modern definition of online communities expands the location of “community” to be any on or offline touchpoint where customers can meet and form relationships. A modern definition also expands the concept of community management to include any form of relationship building and nurturing. Modern online communities produce a range of value for customers and businesses. Peer to peer support is the classic example, yet modern approaches include a range of deep collaboration on new product development to expansive crowdfunding campaigns – and everything in between. Community can play a valuable role in every stage of the customer lifecycle, and can often be the connective tissue to hold the entire experience together.
    Screen Shot 2016-01-07 at 6.03.39 AM
  2. Treat Engagement & Retention as a Community Management Opportunity
    The practice of building and nurturing customer relationships is a job modern community managers understand very well. In particular, Community Managers can be very effective as resources in Customer Nurture campaigns during the consideration phase. I had my community management team at Autodesk reboot a nurture campaign that supported a 30 day product trial, and the results were amazing.

    nurture

    Example Customer Nurture email from a Community Manager

    Further, Customer Advocacy programs grew (at least partially) out of Community Advocate / MVP programs. It is a relatively straightforward process to scale current Advocacy programs to include different customer types. There is also a massive opportunity to harmonize Influencer programs (which typically look outside of existing communities) with Advocacy programs. These are essentially two sides of the same coin – Advocates have typically been nurtured through a hosted community and Influencers have established their own communities and networks. A modern Community Manager treats these contexts as part of the larger community ecosystem.

    Treating engagement and retention as a community management opportunity allows the staff with the skills to manage relationships at scale do what they do best. This is a huge missed opportunity in marketing.

  3. Get Real About Digital Transformation & Social Business
    A modern approach to online community takes into account the entire digital ecosystem, not just single online touchpoints. A modern approach to community management nurtures engagement across the digital ecosystem. So if Community Managers know how to address the key gaps illustrated in the Demand Metric report, what’s the problem? Why isn’t it happening? There are many answers, but one factor that has had a huge negative impact is the trend of Digital Transformation initiatives absorbing (or in some cases, abandoning) Social Business efforts. I expand on (and in some ways, rant about) this in my 2015 recap post. Most Digital Transformation initiatives have focused on technology at the cost of customer engagement. Many Social Leadership teams and organizations have been disbanded or fractured and embedded to the point of being ineffective. Customer Experience initiatives often focus on superficial and in the moment customer engagements at the cost of growing the life long relationship.Bottom Line: We need a new Leadership model that addresses not only the Company : Customer relationship but also the complex network of Customer : Customers :  Company  relationships.

Netting it out:

  • To create successful Customer Lifecycle Marketing initiatives, modern marketers must include online community and community managers.
  • Community Managers can help address the current engagement and retention gaps in Customer Lifecycle Marketing programs.
  •   Organizations need to renew focus and investment in Online Community Leadership to drive growth via Customer Lifecycle Marketing

I am working with a portfolio of clients on evolving their community and marketing programs (lifecycle, influencer & advocacy, community management). I am also kicking off the year by offering a complimentary consultation session (for a limited time & very limited slots). If you would like to get feedback and guidance on your 2016 plans, feel free to register for a consultation here. 

3 comments

  1. Pingback: The Secret Ingredient for Customer Lifecycle Marketing? Community Management. | Structure3C Blog
  2. Pingback: Introducing Network Thinking: A Mobile Approach to Customer Communities – Structure3C | Blog
  3. Pingback: Community management links roundup 11/01/2016 - Quiip

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