So How do you Transform Your Current Customer Base Into Evangelists
Posted: Sun Jan 05, 2025 7:22 am
Thankfully, inbound marketing inherently works to build a community around your brand. The helpful content you deploy to nurture prospects can be just as helpful to nurture customers into taking further action. An effective, customer-specific nurture campaign can be deployed to encourage an up-sell, a cross-sellor vital reviews, references and recommendations.
Learn how to satisfy and retain existing customers to scale your business with our Customer Success Guide.
However, when deciding to activate your current customers to take one of these actions, you want to ensure the results will be positive. Imagine prompting a customer to leave a review of your services and rcs database then publicly discovering they've been severely unhappy. Enter the Net Promoter Score(NPS). The NPS is a score from 1-10 that measures how willing a customer is to recommend — or promote — your products or services.
After running an NPS campaign, you'll have a better idea of which customers to target and encourage to take these additional actions. Then, you can deploy your customer nurture campaigns to those who scored a 9 or 10 and are true promoters of your brand.
How do you Measure Customer Loyalty?
Net Promoter Score: NPS is a score from 1-10 that measures how willing a customer is to recommend your products or services. Many of us rely on our friends and families for product and brand recommendations all the time. If a customer is referred, their lifetime value to a business is actually 16 percent higher – with a greater return-on-investment (ROI) – than others.
CAC to CLV Ratio: The CAC (customer acquisition cost) and CLV (customer lifetime value) ratio provides insight into the return you should expect from your investment in a new customer. The best SaaS companies maintain a 1:3 ratio of CAC to CLV, meaning for every dollar they invest in acquiring a customer, they expect three dollars of value in return.
Churn Rate: Churn is a measurement of how successfully your organization is retaining existing customers. It can be measured at an account level (customers retained) and by revenue (dollars retained). For most SaaS companies, a healthy churn rate is 2 to 3%. If your company is exceeding 3%, it's time to refocus on customer feedback and success.
Customer Referral Revenue: In today's digital age, customer referrals are probably the strongest source of revenue. When you have the right marketing attribution tools in place, you can track those referrals from lead to closed-won. After it closes, tell the customer who provided this referral how much it benefitted your business!
Learn how to satisfy and retain existing customers to scale your business with our Customer Success Guide.
However, when deciding to activate your current customers to take one of these actions, you want to ensure the results will be positive. Imagine prompting a customer to leave a review of your services and rcs database then publicly discovering they've been severely unhappy. Enter the Net Promoter Score(NPS). The NPS is a score from 1-10 that measures how willing a customer is to recommend — or promote — your products or services.
After running an NPS campaign, you'll have a better idea of which customers to target and encourage to take these additional actions. Then, you can deploy your customer nurture campaigns to those who scored a 9 or 10 and are true promoters of your brand.
How do you Measure Customer Loyalty?
Net Promoter Score: NPS is a score from 1-10 that measures how willing a customer is to recommend your products or services. Many of us rely on our friends and families for product and brand recommendations all the time. If a customer is referred, their lifetime value to a business is actually 16 percent higher – with a greater return-on-investment (ROI) – than others.
CAC to CLV Ratio: The CAC (customer acquisition cost) and CLV (customer lifetime value) ratio provides insight into the return you should expect from your investment in a new customer. The best SaaS companies maintain a 1:3 ratio of CAC to CLV, meaning for every dollar they invest in acquiring a customer, they expect three dollars of value in return.
Churn Rate: Churn is a measurement of how successfully your organization is retaining existing customers. It can be measured at an account level (customers retained) and by revenue (dollars retained). For most SaaS companies, a healthy churn rate is 2 to 3%. If your company is exceeding 3%, it's time to refocus on customer feedback and success.
Customer Referral Revenue: In today's digital age, customer referrals are probably the strongest source of revenue. When you have the right marketing attribution tools in place, you can track those referrals from lead to closed-won. After it closes, tell the customer who provided this referral how much it benefitted your business!