If you have had a chat to your marketing team recently, and they’re on the ball, you would probably have heard about the terms ‘target marketing’ and ‘LCV’. These are the new buzzwords in marketing circles, particularly for web-based services, and you need to know what they are in order to stay ahead of the game. And the great thing is that both are heavily reliant on SEO, so if your SEO team is doing their job properly, you already have your foot in the door to marketing success.
First up, let’s take a look at what these new ideas are actually all about. LCV, which stands for Lifetime Customer Value, is all about the relationship between you as business owner, and the prospective client. Your customer will visit your site, revisit the site, and continue to buy your products if you develop a good relationship with them. Think of it as a personal relationship. If there is value in the relationship, then you want it to go on as long and as smoothly as possible, as it is mutually beneficial. The same is true in the world of business. Here, you are trying to cultivate a relationship that sees you keeping the client so happy that they keep coming back, year after year.
Every customer of yours has a Lifetime Customer Value that is worked out by determining how much they spend, how frequently they use your service, and the duration of their patronage. Good LCV is when the customer buys lots, often, for an extended period (known as the client’s life cycle). If you can cultivate good LCV, then you create better than average customers. For example, if Customer A doesn’t feel the relationship is beneficial, he may visit you twice in a year, spending $15 each time. After two years, he will find something better and move on. So your interaction produced $60. A customer who has a great relationship will come back more, let’s say four times a year, and spend more (($35), for longer (4 years). That’s $560, $500 more than the previous customer!
These figures are not an exaggeration, and you can attract these kinds of clients, who in turn attract similar clients ad infinitum. The key is target marketing, and here is where SEO really comes into it’s own. You need to advertise and market your business where better than average clients are going to see it and take notice. Thankfully, SEO analysis will tell you exactly what people are searching, what is already on offer, and how to improve your chances. Every good customer will get frustrated if he can’t find what he wants, so if you can structure your marketing and target him and the places he visits, in a way that he will find appealing, then you have a far greater chance of success and interest. This is really where SEO helps you. Use your SEO service, and pay to attract better than average customers – after all, you will be making so much more money that the added costs will be negligible.
This guest post was written by Victoria. She is learning about Canada Banks.