In today's increasingly competitive marketplace, everyone is finding themselves battling against escalating customer acquisition costs (CAC).
As the financial burden of acquiring new customers continues to skyrocket, and the marketing opportunities seem to endlessly expand, it's more urgent than ever to both understand and improve your CAC leverage. This is particularly amplified in the age of e-commerce, where the ease of product comparison and brand hopping poses significant challenges to businesses.
That's why savvy brands and retailers must begin to utilize modern, efficient, and cost-effective post-purchase technologies that make it simple to consistently engage with consumers and build strong, lifelong relationships.
The evolution of customer engagement
Traditionally, businesses have focused their marketing efforts more on the pre-sale journey, in the hopes of attracting and converting new customers.
But in today's economy, that tactic no longer holds up. Now, in order to maximize your business's CAC and create lifelong customers, it's time to move the focus from the pre-sale to the post-sale.
Why the flip?
The proof is in the data.
Existing customers tend to spend 30% more on subsequent products than their initial purchases, according to historical data. These small increments in revenue generated by current customers can significantly boost overall revenue over time. Not to mention, it's four to 10 times more cost-effective to maintain existing customers than to perpetually attract and refill the consumer pool.
So, what's the secret sauce to retaining and engaging post-sale consumers to lifelong, loyal brand fans? Post-purchase technology that makes it simple to provide personalized post-sale content and messaging to customers that's useful and engaging.
And all that begins with product ownership.
Embracing the post-purchase revolution
Product ownership initiates a renaissance in the consumer-brand relationship.
Product ownership is the development, delivery, and ongoing management of a product, to ensure it's hitting all customer needs. Using the power of technology, businesses ensure a continuous connection between consumers and the brand, guiding and supporting them throughout the lifecycle of their product.
Thanks to the power of modern AI-powered tools that can consistently engage customers with personalized content and messaging post-sale, product ownership is easier than ever.
Businesses today now have the opportunity to guide and support consumers throughout the lifecycle of their products with relevant, tailor-made experiences and content that make customers feel seen, heard, understood, and supported.
Another key benefit of embracing product ownership? This strategy creates a win-win for retailers and consumers alike. By utilizing modern post-sale technology to engage and support consumers for a successful experience post-sale, businesses can increase LTV by creating lifelong, loyal brand fans.
Relationships, powered by data
To make the most of product ownership technology, and best meet the needs of your consumers, it's critical to embrace tools that rely on data-driven insights. After all, product ownership technology is only useful when it truly caters to consumer behavior, preferences, and trends.
In that sense, data-driven insights are especially helpful when it comes to determining the most useful personalized information to send to consumers on their post-sale journey. And with CAC on the rise, it is more important than ever to use data as leverage to increase Life Time Value.
Let's take the example of a pet store owner who recently sold a first-time consumer a fish tank and several goldfish.
Many new goldfish owners struggle with questions about appropriate feeding times, when and how often to clean the tank, what decor or plants to add to a tank, and of course…how to keep their goldfish alive. As many of us know, goldfish aren't particularly well-renowned for their lifespan.
But, if you're the pet store owner, engaging with the consumer from the get-go by providing useful information that helps keep their fish alive is the key to building a sturdy foundation of trust. This kind of informative, engaging messaging not only sets a consumer up for success, it also reminds them of the above-and-beyond value of your business.
Instead of only receiving between $250-$500 of revenue depending on the lifespan of the fish, as a business owner, you can continuously educate the fish owner on the best foods to use, how to take care of the fish, and more — translating to a longer fish lifespan and more than 10x in revenue. That $250 just became $2,500 in revenue.
When using technology, not only will you see major increases in revenue, you're helping the owner succeed with their fish. A true win-win.
Over time, engaging with consumers in this personalized way not only ensures their happiness and success, but also helps the bottom line. Say goodbye to having to fish for so many new customers.
The future of retail: Innovation and the human touch
Moving ahead, the future of retail, no matter your specific industry, will lie in focusing on the post-sale experience to create loyal brand fans. And that future will be made possible by the collaborative synergy between AI-powered technological innovation and the empathy and smarts of human business owners.
The concept of product ownership stands as a testament to this shift, and represents a fundamental pivot in our thinking around customer engagement and retention.
The best products geared towards product ownership are those that rely on data-driven insights, to truly serve the personalized needs of individual consumers, like through the delivery of tailored messaging, tips, or future product recommendations post-sale simple.
With modern, cost-effective product ownership technology, retailers can stay competitive, get more from their CAC, and create meaningful connections with consumers that just might last a lifetime.