We have entered a new era of business, where digital is at the heart of everything. Many companies founded today are digital-first, and now traditional enterprises are also pivoting their operations to embrace digital experiences. In order to drive long-term growth, however, companies must consistently deliver valuable customer experiences. I like to call this the era of the “value economy.” In the value economy, all sources of revenue need to correlate with the value that products bring to customers. For marketers, this necessitates a shift in strategy, with more time committed to building personalised experiences and delivering lifetime value.
So, what do marketing teams need to focus on?
Agree on who owns digital
Every business wants to improve its online customer experience. However, this relies on customer data, which can often be scattered across multiple channels and systems. This can cause complications as, historically, there hasn’t been a consistent owner of the online business. Some companies may rely on their chief marketing officer to manage web, growth, and digital strategy — on top of more traditional marketing activities. Other companies put more emphasis on the chief growth officer, allowing this role to function as its own entity, either within or outside of marketing. For companies with dual online and sales-led revenue routes, this responsibility may fall to the chief revenue officer, and in product-led companies, which we’re seeing more of, the product team may own digital.
Unfortunately there is not a straightforward answer here, but determining ownership is the most important thing. One of the deciding factors will be how fast any given online business grows. Most often, companies will likely decide to have a single owner, but shared ownership is a strong place to start on the path to greater organisational maturity.
Don’t neglect retention
Acquisition was once the defining metric for growth. However, today, retention has become critical to any online business as customers can disengage and churn online anytime and with just a few clicks. Product, marketing, and sales teams work daily to ensure customers are engaged throughout their digital experience. Why? Because they can retain and monetise them with almost no human intervention.
When customers engage across a range of digital channels, it is vital to create a seamless experience. A recent change in customer purchasing habits reveals customers are walking away from services and products that don’t bring them daily value. Equally critical to driving sustainable growth is maintaining revenue from existing customers. Teams must balance this work with acquisition and monetization efforts. Here, customer data is critical to help businesses understand which features or experiences drive the most repeat purchases, in turn boosting customer loyalty.
However, simply gathering insights is not sufficient — they must also be backed up by real action. By leveraging behavioural data, marketers can drill down on those preferred customer experiences to increase loyalty and purchases. Especially in fiercely competitive markets, such as fintech and retail, companies that successfully leverage behavioural data will set themselves apart, offering more personalised experiences both in and outside of their digital product.
Tie experiences to business outcomes
ROI is at the heart of everything we do in business, but can you truly measure it? Teams will readily share online metrics like page views, bounce rates and conversion rates, but these data points fall short of explaining how they directly relate to revenue.
As a result, it’s imperative for companies to always ask how: these online metrics connect business growth. Newer metrics such as net revenue retention (NRR), reduced churn, annual cost savings, and decreased customer acquisition costs (CAC) are now critical KPIs. Marketing leaders are tasked with reporting ROI to stakeholders like the C-suite and the board, and the more they can highlight impact on increased revenue and cost savings, the better they can drive business growth and instill trust.
Customer stories offer a unique way for companies to showcase product ROI. However, traditionally, companies have been reluctant to share figures that indicate revenue increases or cost savings. This is changing, however, and a growing number of companies are ready to share and celebrate those milestones. As such, highlighting ROI externally to the market has become an essential part of the job.
The value economy era is upon us—and it is crucial for businesses to adapt. Customers demand products that are tailored to their tastes and preferences and today, marketers have the power to adjust their strategies to deliver these experiences. By determining online business ownership, leveraging data, and clearly demonstrating true ROI, marketing leaders demonstrate lifetime value and, in turn, earn the trust of the C-suite and customers alike.
About the Author
Tifenn Dano Kwan is the Chief Marketing Officer at Amplitude, a leading digital analytics platform that helps companies unlock the power of their products. She previously held CMO positions at Collibra and Dropbox. Tifenn’s mission is to help shape the future of work through the conduit of marketing, powered by superior digital experiences that help people and teams reach their potential.
