Are your marketing teams working in silos? Find out why this could be damaging your CLV, and what you need to do instead.
Crimtan Business Director Asia Frank Cheng recently hosted a panel discussion including industry expert Jonathan Wan (Japan Airlines Director of Customer Experience, Analytics and Global Marketing), Bernard Chong (Foodpanda Marketing Director Malaysia) and Joshua Wilson (Crimtan Commercial Director JAPAC).
You can watch the panel in full to find out more on how to effectively apply customer lifetime value (CLV) to your brand, and what steps brands can take in the cookieless world.
But while you’re here, let’s explore more into why working in silos is detrimental to your CLV and how to avoid the common trap.
Why working in silos can impact your CLV
Customer lifetime value (CLV) refers to the total amount of revenue you can earn from a typical customer. Regardless of the industry your brand is operating in, the RFM model – recency, frequency and monetary value – is key to achieving high CLV.
Recency refers to the last time a customer made a purchase, frequency refers to how often a customer makes a purchase from you, and monetary value refers to the value of the purchase.
However, when it comes to CLV, the issue is that brands (in particular large brands) tend to operate in silos. Here’s an illustration of why working in silos could impact your CLV:
James, who is based in Japan, takes domestic flights several times a year. The domestic marketing team at Japan Airlines knows this and sees James as a valued customer. However, if the international marketing team does not have access to this information, they would not know that James is already a loyal flyer.
When running international marketing campaigns, James could therefore fall under the segment of ‘brand new customers to target’. However, from James’ point of view, the ads he is served within this segment may feel disjointed and inappropriate, causing him to feel that he is not a valued customer. This could impact his relationship with Japan Airlines, and reduce his CLV as a result.
How to avoid falling into the CLV ‘silo trap’
In order to prevent scenarios like this from occurring, brands need to move away from siloed systems and ensure that all teams are viewing one unified customer profile, regardless of whether those teams are in marketing, sales, customer service, or even call centres.
When you operate in silos, it is very difficult to connect your activities up. This can lead to issues like data wastage, leakage and inefficiencies, particularly for programmatic buyers.
With so many channels now available programmatically, it is more important than ever to ensure that you connect your media and centralise your data and creative.
Why you need to work with a single partner
Once teams are aligned, the next step is finding a single programmatic partner in order to avoid issues with siloed systems further down the line. Programmatic experts like Crimtan, who have a unified tech stack that includes DMP, DSP and DCO are able to help brands avoid the risk of data leakage, and provide access to the same data through a unified customer ID which brings a single view of the customer journey.
This enables you to run connected campaigns that serve relevant ads to customers throughout your customer lifecycle – and increase your CLV as a result.
This ‘joined up’ approach will be even more important in the future, and deliver even greater benefits, as your programmatic campaigns become more complex and diverse.
Keen to learn more? Watch the full panel session:
Get in touch and we can get started maximising your customer’s CLV.
About the author
Joshua Wilson started his career in digital marketing in 2013 when he started his own affiliate marketing business promoting brands on social networks and mobile DSPs. From there, he moved into content and worked with brands to help build their online presence and communities.
Joshua started at Crimtan as a client services manager in 2015 working on the APAC business leveraging his knowledge for the market and Japanese language skills. In 2018, Joshua moved to Tokyo to build and open the Crimtan Japan office. Now in the role of Commercial Director, JAPAC, Joshua oversees the operation in the region promoting Crimtan’s local and international capabilities.