While most marketers are focused on net new acquisitions, a relatively forgotten area is Installed Base Marketing. Installed base marketing is about looking at the customer journey beyond closing the deal and engaging with customers who are currently using the company’s product.
Existing customers are more likely to engage with you and purchase from you. In fact, studies show that customers are 4 – 5 times more likely to convert than new prospects. They can also be your best advocates. Therefore, installed base marketing is essential to maximize the opportunities presented by the existing customer base.
Upselling and cross-selling is easier than selling to new customers
However, there is a marketing disconnect today: only 17% of marketing budget is spent on marketing to customers.
Companies are not investing in retention as much as they should
There are two approaches which Verticurl adopts for installed base marketing: Customer Journey Based and Customer Value Based.
APPROACH 1: Customer Journey Based:
Engage the customer based on their engagement status with the organization. A net new customer has different needs as compared to a customer who has engaged with you for a long period of time. Being able to engage them based on their requirements is an obvious approach to a more satisfied customer.
Verticurl identifies the different touchpoints in the customer journey, namely:
Upsell, Cross-sell & Advocacy and
We then develop respective marketing campaigns at each touchpoint, such as onboarding and customer satisfaction campaigns which are ten delivered via marketing automation platforms.
APPROACH 2: Customer Value Based:
Treating a customer based on their present/potential value is another way of segmenting the customer base. This approach allows you to provide your customers a very focused engagement plan, maximizing the value you can provide to your customer base. There are various models that can be used for this segmentation approach, some of the more common ones being RFM Modelling and LTV based Modelling.
Verticurl develops different segmentation models/approaches based on availability of data to determine sub-segments of the customer base and define campaign types for each sub-segment. For each sub-segment, marketing campaigns are designed and executed with different objectives such as increasing the share of wallet.
We would be happy to help you with Installed Base Marketing. Ready to talk?