Sales-focused → Customer-focused Strategy: The Transition Many Business Need to Make

Sales-focused → Customer-focused Strategy: The Transition Many Business Need to Make

Step 1: Acquire customers.

Step 2: Keep them.

My simple two-step plan for growing your business.

Money-back guaranteed.

You’re welcome.

Next question.

Picture of David Brent from "The Office UK"
Photo credit: Adrian Rogers

Whilst it truly is that simple, of course, there are many moving parts.

But, the simple fact that most businesses overlook?

Step 2 should occupy most of your energy.

Meanwhile, 90% of companies will spend most of their time, money, and energy on Step 1.

When it comes to issues that stifle business growth, this is the most common one.

And a SALES-focused marketing strategy is typically to blame.

Sales-Focused vs Customer-Focused Strategy: A Comparison

A sales-focused marketing strategy will use…

  1. Immediate return on investment (ROI)
  2. Low cost per acquisition (CPA)

… as the SOLE measures of success.

Whilst completely overlooking the most important metric there is:

Customer lifetime value (CLTV).

CLTV measures customer loyalty. 

I.e. the total net profit a company expects to earn from a customer over the entirety of their relationship.

What happens when your strategy doesn’t account for this metric?

→ Short-term revenue spikes

→ High customer turnover

→ Unsustainable growth

(OUCH! Been there myself…)

The graphic below illustrates why.

Sales vs customer focused strategy graphic

Consider this…

Each circle represents a customer.

The size = CLTV / the amount a customer has spent with the brand.

A sales-focused strategy will acquire the maximum amount of customers at the lowest possible CPA.

This will generate immediate, tangible ROI.

Without also focusing on the EXPERIENCE during and after their first purchase, these customers are unlikely to spend more with your brand and many will never return.

Meanwhile, a customer-focused strategy will focus on nurturing these relationships.

This may not contribute to IMMEDIATE revenue.

However, the value that each customer provides to the business will continue to GROW over time.

Not only will each customer spend more with your brand (↑ CLTV), but they will also become loyal brand ambassadors who – without additional ad spend – will generate new customers via word-of-mouth.

This creates continuous momentum.

Which creates long-term, sustainable growth.

Not only will you continue acquiring new customers, but their “value” will constantly grow.

Creating a Customer-centric Marketing Strategy

Now you’re probably wondering:

“How exactly can I create a customer-centric marketing strategy?”

For me, there are 3 key steps:

Step #1: Gain a deep understanding of your target audience’s values and motivations

Dive into customer feedback, surveys, and website analytics to listen to and/or observe their behaviour.

This data is waiting to be turned into actionable insights.

Insights that should guide your marketing and product development strategies. 

This data will be the foundation of your strategy (see 2 and 3).

Step #2: Use this data to provide a seamless customer experience

Nowadays, consumer-brand interactions happen in both a digital and physical context. So, when I say “customer experience” I’m referring to both online and real-life interactions. 

Let’s, however, use the example of an eCommerce store. 

Once you have identified patterns and pain points by watching session recordings of users interacting with your online store, these insights should help you craft a more tailored user experience that speaks directly to their needs and desires.

  • Do they hesitate or become confused at certain navigation points?
  • Are they abandoning their carts after viewing shipping costs?
  • Are they repeatedly searching for a product category that isn't easily accessible?

NOTE: The EXACT same principles apply in the physical world e.g. shopping mall owners using retail analytics to inform the layout of their mall!

Step #3: Use this data to create a brand that reflects your audience’s values

It’s not just about HOW you communicate with your audience, but also WHAT you’re communicating. Your brand narrative and messaging must mirror your audience's values in every facet.

E.g. consider whether the imagery and photography your brand employs are truly representative of your target demographic.

It’s essential that people can directly relate to your brand and/or regard it as aspirational.

The concept of behaviour mirroring is key here – your brand's outward expressions should echo the inner values of your audience.

This is central to creating a brand that people will authentically buy into. 

The Key Takeaway

Why do these three simple stages ensure long-term, sustainable growth?

Because they put the customer (not sales) at the centre of all marketing decisions.

They work in tandem to cultivate a foundation where customer loyalty naturally occurs.

When you can build this foundation, sustainable growth is inevitable.


Has anything piqued your interest in this newsletter? Comment – don’t be shy!

Alternatively, if you’d rather discuss anything 1-on-1, reach out to me directly on LinkedIn or book a 30-minute consultation!

Tom Barlow

Building the 🌎’s best legal marketing community

1y

A must read for anyone in business! Thank you for the insights! Kieran Cassidy

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