Design for Online Engagement by David Holston
Author:David Holston [Holston, David]
Language: eng
Format: epub
ISBN: 978-1-4403-3448-1
Publisher: HOW Books
Published: 2013-07-15T00:00:00+00:00
Understanding Which Audiences Provide the Most Value
Like any communication, the more targeted and customized, the better the response rate. Brands that take a shotgun approach to their online communications are more than likely wasting time and money on audiences that will never bring any value to the brand. This is why it is important that the brand not only defines target audiences but defines the Most Valuable Customer (MVC) as well. Value can be defined as anything from overall lifetime spending to their role as evangelists for the brand. The MVC serves as the target audience for the online strategy. By taking this approach, brands are able to filter out audiences that are too expensive for the client to acquire, do not give an acceptable return or take a long time to become profitable. By eliminating these audiences and focusing on just the most valuable, brands can target their efforts and maximize their marketing dollars. Why spend money on low-return audiences?
The process for determining MVC status can be done a number of ways. At its most fundamental level, the brand must ask itself some basic questions:
Who contributes the most toward our revenues?
Does it cost a lot to maintain these customers?
Do they promote the organization?
Do they influence the industry?
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