August 08, 2005
A Quick Intro To Individualized Lifecycle Marketing
Individualized Lifecycle Marketing provides a straightforward, customer-driven alternative to traditional marketer- or offer-driven targeting tactics.

Today, marketers compete in a world where customers are in control, expectations are high and rising, and every interaction can make or break a relationship. Acquiring, retaining, and growing a strong, valuable customer base has never been more difficult--which is why timing and relevance have never been more important in an organization’s outbound marketing strategy. Now, more than ever, more marketers must have a clear understanding of the complete customer lifecycle, as well as the ability to leverage that knowledge to send highly relevant messages to prospects and customers when they are most receptive.
Individualized Lifecycle Marketing lays the foundation for more successful outbound marketing. It provides a clear roadmap and proven methodology that guide marketers in creating an overarching strategy to propel prospects and customers to more valuable stages of the buying cycle--from awareness to trial, and from purchase to loyalty. By helping marketers tailor their messages and tactics to the lifecycle of the individual customer, this approach dramatically improves their ability to acquire, retain, and grow customer value.
In May, 2005, JupiterResearch found that, in conflict with profitability goals, marketers largely dismiss relevancy as an important aspect of their e-mail campaigns while ignoring the evidence that highly targeted campaigns outperform offer-oriented campaigns. According to the survey, relevant campaigns increase net profits by an average of 18 times more than do broadcast mailings, despite additional campaign costs (The ROI of E-mail Relevance, JupiterResearch, May 2005). In addition the study shows tactics that improve relevance (e.g., lifecycle marketing) deliver substantially higher improvements in revenue and net profits. Clearly, taking a more targeted approach to outbound marketing based on a contextual awareness of the customer position in the lifecycle has proven business value.
E-mail Marketing Success with Individualized Lifecycle Marketing
Leading marketing organizations in every industry are implementing lifecycle programs with impressive results. Individualized Lifecycle Marketing is helping companies build stronger, more profitable customer relationships that increase profitability. Responsys, a provider of on-demand e-mail marketing solutions, has adopted this new approach to treating marketing as a process of strategically planned programs, instead of one-off campaigns. Using the lifecycle as a framework, Responsys works with companies to more effectively match tactics to business objectives and create outbound programs customized for individuals and the stage of the process they are going through--as opposed to some forms of database marketing where everyone would get virtually the same message or offer.
Case in Point: PETCO Improves Efficiency and Campaign Results
PETCO, a large pet specialty retailer, needed to improve the relevance, and ultimately the results, of its e-mail marketing campaigns. The company wanted to test the impact that refinements in its mailings had on its e-mail subscribers, and correlate the buying behavior of e-mail subscribers with non-e-mail subscribers. PETCO also wanted to launch the most successful campaigns in an automated fashion to create campaign-management staffing efficiencies.
After testing various message formats and frequency, PETCO determined subscribers should get no more than four messages per month, including newsletters, product notifications, and other recurring and ad-hoc mailings. Using Responsys, PETCO set up triggered messages called "fetch my sales" that would trigger offers based on customer purchase behavior and shopping lists. PETCO also launched an automated pet birthday message, and found one-half of customers purchasing from these messages had never before purchased from PETCO online.
Use of both triggering and personalization has allowed it to attain improved sales. For example, testing of personalized cross-sell messages revealed those who received them spent 15 percent more than those who did not. By testing message frequency, content, and personalization, PETCO has dramatically improved click-through rates by more than 100 percent, and generated more online sales. By employing automated and triggered campaigns, PETCO fielded an increased number of comparatively more effective campaigns, without impacting staffing levels.
Summary
About one-third of the market will soon adopt contextually relevant tactics (e.g., targeting top performers, cart abandonment campaigns). During the next 12 months, however, the ability to implement these campaigns in a short period of time will represent a significant competitive advantage over the masses that remain mired in fielding undifferentiated broadcast campaigns.
Individualized Lifecycle Marketing provides a straightforward, customer-driven alternative to traditional marketer- or offer-driven targeting tactics, which often have limited relevance to a customer’s current situation and result in annoying interruptions, rather than compelling communications that create value for both the customer and the company. By adopting this aligned, customer-focused way of marketing, companies can create an intentional, differentiating customer experience that drives ROI in a fiercely competitive market.
Scott Olrich is chief marketing officer of Responsys, which provides e-mail and lifecycle marketing solutions. The latest version of its product, Interact 5, was launched on August 8, 2005. You can find out more about the company and its products at