Understanding the 360-degree View of Your Customer

When working in marketing, there are many aspects that come to light that need to be addressed. On top of this list is anything to do with your customers, particularly their data. Hence, the 360-Degree Customer View was born.

Having customer data is of utmost importance to businesses nowadays. But the problem is that most of this data is scattered as customers interact with brands and with each other across multiple platforms: social media, mobile apps, in-store, on-ground, via websites, and more.

So how do you combine all of this and reach your customer? That’s the focus of today’s topic: the 360-Degree Customer View.

What Is a 360-Degree Customer View?

A 360-Degree Customer View is being able to collect all of your customers’ data in a single place. This data can include, but is not limited to, basic information such as names, telephone numbers, email…etc.

It also includes past and present billing information, purchasing activity, their interactions with your customer service representatives, and last but certainly not least, their social media behavior.

With the never-ending increase in online apps, people are getting drawn to personalized experiences that tailor to their needs. That’s why integrated approaches like the 360-degree customer view have become a hot topic now.

What does a 360-Degree View of a Customer Do?

It helps you, as a business, not only collect data but get a better understanding of your customers. Once you do, you can serve them better and reach them better.

In other words, a 360-Degree Customer View helps you build long-term relationships with customers and supports your business growth.

A 360-degree customer view can also be described as the foundation that makes an organization’s relationship with customers an experience-based relationship rather than a transaction-based one.

In other words, it’s a view that acts as a melting pot that syncs all customer data together.

With this unified knowledge, your business can acquire more precise customer insights and build unique customer experiences.

360 degrees is a relationship cycle that consists of many touchpoints where a customer meets the brand. Be it through purchases or marketing communications, via customer service or on social media,” explains SuperOffice.

A great product isn’t enough to drive customers, but having a great customer service experience can help.

If your customer service representatives have all the info they need on customers, they can easily respond to them, answer their complaints and queries – without having to request background information – and support their needs.

“If you, as a company, are present at and collect information on each stop in this 360-degrees relationship cycle, then you truly know your customers. It helps you better understand your customers’ priorities and preferences. Which, in turn, means you can position yourself to better predict their current and future needs,” adds SuperOffice.

Everything under one roof

Imagine an unmotivated salesman going to work and having to call around four or five people to get customer data.

Now, imagine another person having the same information all on their desk.

Who is more likely to take relevant quick action?

Having strategies that shorten the chain and give us a multifaceted view of our customers is exactly what businesses should be looking for. Or maybe they are but don’t know what this strategy or tactic is called.

The 360-degree customer view provides this single yet comprehensive view of your customer even if that customer’s data is scattered across different applications and platforms.

Conclusion

Data shows that under 10% of companies use a 360-degree view of their customers, while only 5% use the 360-degree view to support and grow their businesses, says research firm Gartner.

So it’s no wonder companies are struggling. They are missing out on a major source of help when it comes to customer data.

What Do You Need to Know about Customer Lifetime Value?

One of the most important terms in business is the customer lifetime value (CLV), sometimes written as CLTV, and sometimes referred to as lifetime value of a customer.

Simply put, it’s a metric companies use to grow their business and learn more about customers.

Defining Customer Lifetime Value

Companies use CLV to measure the time they would need to generate money they invested in earning or getting a new customer.

CLV also helps companies understand how much revenue a single customer can generate for them during the span of their business relationship.

Imagine a company that wants to acquire a new customer. The CLV would be the metric it uses to forecast how much it would need to spend to acquire that customer and how much that customer would be worth for a given number of years, or the length of time the company determines.

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If your company is looking to acquire long-term revenue-generating customers, then customer lifetime value would be an essential part of your process.

“The longer a customer continues to purchase from a company, the greater their lifetime value becomes,” HubSpot explains.

Why Is CLV Important?

CLV is an important metric “because it helps you make decisions about how much money to invest in acquiring new customers and retaining existing ones,” explains Shopify.

If your company maintains a good customer support and customer success team, it can enjoy a long-term relationship with customers and turn them into loyal buyers. A lack may result in higher churn.

It’s important for companies to understand what customer lifetime value is because it’s how they can associate profit to customer relationships.

CLV is used to guide companies into calculating how much they need to invest to maintain a relationship with their customers.

For example, if your company estimates CLV at $200 for a single customer relationship, then you shouldn’t spend more than $200 to maintain that relationship. Otherwise, you would be making losses.

Calculating Customer Lifetime Value

So how do companies measure CLV? There’s a way to calculate it.

Shopify explains the equation as being:

“CLV = average value of a purchase X number of times the customer will buy each year X average length of the customer relationship (in years)”

Let’s put this into an example. If you own a shoe store, an athlete or marathon runner who buys 4 pairs of shoes from you per year for eight years, would have their CLV equation looking like this:

$100 per pair of shoes X 4 pairs per year X 8 years = $100x4x8= $3,200

On the other hand, a mother buying shoes for her two-year-old daughter would be purchasing at $20 a pair and her purchases would differ year after year. Her CLV would look like this:

$20 per pair X 5 pairs per year X 3 years = $20x5x3 = $300

In other words, the athlete would have a higher CLV than the mother, from a business perspective.

Benefits of Knowing CLV

By calculating the customer lifetime value for various customers, you can make many important business decisions.

According to Shopify, these are the top four reasons you need to know your CLV:

  • How much money do you need to spend to acquire similar customers and have a profitable relationship
  • What kinds of products do customers with the highest CLV want
  • Which of your business’s products have the highest profitability
  • Which of your clients or which types of your clients are the most profitable for your business

Here’s What You Need to Know about the Facebook Pixel

One of the most important options provided by Facebook for businesses is the Facebook Pixel. Companies, small and large, use it for tracking purposes.

But what is the Facebook Pixel and how does it work?

That’s what we will be talking about today.

Facebook Pixel Basics

Facebook introduces its Pixel as “a piece of code for your website that lets you measure, optimize and build audiences for your advertising campaigns.”

Simple yes, but let’s explain it further.

You’re a business and you have a website. There is a lot of data you need, such as: Who are these people visiting your website? Where are they coming from? What pages do they visit? Which pages do they leave?

If these people are coming because you’re creating ads on Facebook, are they converting? Or people landing then leaving?

 

How Does the Facebook Pixel Work?

When you have a Facebook Pixel installed in your website, you can use it to track people’s actions when they visit your webpages. For example, you can track actions like buying a product or service.

Once they take an action, the Pixel is activated and reports the action taken. This means, you will know when a customer clicks your Facebook ad and converts on your website.

The “pixel also tracks user-generated events, such as sites visited, products added to cart, checkouts initiated and purchases made. So much as submitting a lead form on a website with a pixel gets thrown into the mix,” explains Adage.com.

“You’ll also be able to reach this customer again by using a Custom Audience. When more and more conversions happen on your website, Facebook gets better at delivering your ads to people who are more likely to take certain actions. This is called conversion optimization,” Facebook explains.

 

What can the Facebook Pixel do?

Its primary function is to “track.” But here is a list of tracking options that the Facebook Pixel can perform:

1)     Measure conversions across multiple devices

2)     Optimize delivery to people who are more likely to take action

3)     Create custom audiences from visitors to your website

4)     Give you more data about your website traffic

How to Set Up the Facebook Pixel?

Adding the Pixel to your website isn’t difficult. You can even do it yourself if you can access your website’s code, you can step-by-step instructions using Facebook’s Help Centre, or you can have your developer set it up for you. Most people and businesses prefer the latter option.

Last but not least

If you’re just starting out, it would be a good idea to embed the Facebook Pixel into your website early on so you can track your audiences and their actions across your site. It will collect the data from your visitors and send it back to you.

“By targeting broader ranges of people you think will respond positively on your site, you’ll help feed the hungry pixel much-needed data that will later help you build lookalike audiences,” says Adage.com.

What Is Facebook Lookalike Audience?

Facebook is a common go-to advertising platform, offering various audience options for advertisers including today’s topic: the Facebook Lookalike Audience.

Having surpassed the 2.6-billion daily active users mark, Facebook will remain a top contender when it comes to advertising dollars.

What is Facebook Lookalike Audience?

Facebook’s Lookalike Audience is one of several audience types Facebook allows advertisers to target when creating ads on its platform.

Like its name suggests, a lookalike audience is similar to your current audience.

Basically, you are telling Facebook “This is my audience now show me who is similar to them so I can target them with my ads.”

Here’s what Facebook says about its lookalike audience option: “[It’s] a way to reach new people who are likely to be interested in your business because they’re similar to your best existing customers.”

Facebook notes that when it’s time to “grow your business,” that’s when you use your custom audience to create a Lookalike Audience.

Lookalike Audiences are lists of people to target with advertising who are similar to (or ‘look like’) the people currently engaging with your business,” Facebook explains.

HubSpot describes Facebook Lookalike Audience as a “sophisticated audience matchmaker for marketers.”

Cool, right?

Benefits of Lookalike Audience

This Facebook audience type allows advertisers to reach and target the best customers for a brand. It is like levelling up from Facebook Custom Audiences, which you use as the basis for your lookalike audience.

Lookalike audiences “increase the probability of generating high-quality leads and offer more value on ad spend,” explains HubSpot.

How to Create a Facebook Lookalike Audience

Like the Custom Audiences, you can get your targeting data from several resources. These can include:

Customer information: You can generate this from a landing page, newsletter list, website traffic, or a survey filled by customers.

Visitors: People visiting your website are a great resource and offer tons of data that can be used to re-target them across Facebook. You will need to have a Facebook Pixel to compile this data.

Mobile app activity: With a mobile app for your business or e-commerce store, you can integrate it with active Facebook SDK event tracking. This collects data from people who have installed and used your app.

Engagement audience: This is an audience who has engaged with your brand or posts across Facebook or Instagram. Engagement, according to Facebook, entails actions such as likes, reactions, comments, or shares. It also includes filling forms, video views, and actions on your Facebook page or Instagram business account.

Offline events: If you have an offline or brick-and-mortar store, you can create a list of those who have visited your store. The information collected can include interactions such as in-store visits or calls.

Last quick tip

When you’re using Facebook Lookalike Audiences, include people who are more likely to buy from you or those who have already purchased your service or product.

“Many successful marketing campaigns are built on email lists containing individuals who have taken key actions already, such as adding an item to their cart or purchasing an item,” says Adage.com.

This helps narrow down audiences and gets your brand closer to people with a bigger chance of buying from you.

Last but not least, creating Facebook Lookalike Audiences is omnichannel marketing tool. It’s also based on having a customer segmentation strategy.

Facebook Custom Audiences: A Short and Easy Guide

It’s common knowledge that Facebook ads are one of the most widely-used social media ads in the world. Businesses swear by them, especially when they get their Facebook Custom Audiences done right early on.

This shouldn’t come as a surprise, considering that the social media platform 2.6 billion active monthly users by the end of the first quarter of 2020, making it largest social network globally, according to Statista.

Facebook Advertising

Facebook offers businesses and individuals alike a wide array of advertising options. Whether you’re targeting clicks, traffic, awareness, subscribers, or selling as an e-commerce store, there’s something that Facebook can help you with.

One of the top benefits to using Facebook advertising is its wide-ranging targeting options, which offer filters that help brands, companies, and e-commerce stores to reach relevant audiences with their products and messages.

Facebook ads allow advertisers to reach those customers who are more likely to respond to your ad. For example, if you want to get clicks to a blog post on your website, Facebook allows you to target people are more likely to click on links instead of those who don’t click.

But to advertise correctly, you need to be aware of the different audiences Facebook works with. This is exactly what we will be covering in this series of articles.

Types of audiences on Facebook

Facebook Custom Audiences

Facebook describes its custom audiences as “an ad targeting option that lets you find your existing audiences among people who are on Facebook.”

How? You upload resources like customer lists, website traffic, app traffic, or engagement on the social platform to create those audiences.

A Facebook Custom Audiences is an audience you’re already aware of and who are familiar with your business.

This custom audience is created from information you, as a business, have collected, which may include: e-mail addresses, phone numbers, addresses…etc.

Benefits of Facebook Custom Audiences

“Custom Audiences are one of the most highly-targeted forms of marketing, making them increasingly popular with ecommerce stores who want to keep their brand top-of-mind with interested consumers,” explains BigCommerce.com.

It adds that Facebook’s Custom Audiences allow stores to target “contextual advertisements directly at consumers” who recently visited those brands’ websites. This attracts people better as the products are “still fresh in their minds.”

When was the last time you visited an e-commerce store’s website only to find the products you’d been considering – or even added to your cart – showing up again on Facebook? That’s part of Facebook Custom Audiences and re-targeting.

Facebook Custom Audience Options

The social network allows you to create several types of Custom Audiences. These are:

  • Website Custom Audiences (based on traffic and data from your website)
  • Mobile app Custom Audiences (based on traffic, data, and actions from your mobile app)
  • Custom Audiences using a customer list
  • Engagement Custom Audiences

According to Facebook, each ad account can create up to 500 Custom Audiences.

Ideas for using Facebook Custom Audiences

Sometimes customers may go through an e-commerce store only to leave or forget about their shopping carts. But with Facebook Custom Audiences, you can target those audiences once more, reminding them of their searches but in a different environment.

This allows you to test different ad messages and see which converts better.

Sometimes users truly do forget what that they had a shopping cart somewhere. By creating a kind-of-reminder with a limited-time offer, you’ll be able to attract them to your store once more and to completing their purchase.

But that shouldn’t be your end target. It’s important to analyze the ads you create and see which gets the best response on Facebook.  

In addition, using Facebook Custom Audiences, brands can even do micro-targeting. This allows them to target users who visited specific pages on their website.

Last tip!

The secret to creating any good audience is to have a customer segmentation strategy that helps you understand your customers and their behaviors.