The Insider's Guide to Increasing Ecommerce Customer Lifetime Value

Today’s fastest growing ecommerce companies achieve 79% higher customer lifetime value — how? That was the question Anita Andrews, VP of Client Success and Morgan Jacobson, Hubspot’s Ecommerce Sales Manager set out to answer for our most recent webinar.

Armed with the data from today’s top performing ecommerce companies — provided by Anita — and real-life examples of how fast-growing companies acquire and maintain these customers — provided by Morgan — RJMetrics and Hubspot lay out how ecommerce companies can move into the top performing quartile by increasing customer lifetime value.

You'll learn:

  • The 4 drivers fueling performance in today’s fastest growing ecommerce companies
  • How to get more of your very best customers (the kind worth 18x more than the average customer)
  • Strategies for turning one-time purchasers into loyal customers

Transcript

Susannah Morris: Hello, everyone, and welcome to the Insider's Guide to Increasing Customer Lifetime Value. I'm Susannah Morris and I work on eCommerce Marketing here at Hub Spot. Today, we'll have 40 minutes for our formal presentation followed by a question and answer session with our presenters Morgan and Anita, who I will Introduce in a moment. Just a couple of administrative notes before we get started. Throughout the presentation, you can ask your questions in the chat pane and I will keep track of them for the Q and A session. And if you wanted to go back and repeat something you might have missed, we are actually recording the webinar and we will email all registrants a copy tomorrow.

So let's get started! I'm happy to introduce our speakers today. We'll be hearing from Morgan Jacobson who is Hub Spot's eCommerce sales manager. He specializes in helping eCommerce companies direct more revenue through deeper customer insight. He'll be talking about best practices and examples of how you can increase customer lifetime value. We'll also be hearing from Anita Andrews who is VP of customer success at R.J. Metrics, who works on the human side of analytics. Our geometric builds software that helps online companies take their mountains of data and use it to improve their businesses. She'll be taking a deep dive into the data around customer lifetime value.

On our agenda today, we're first going to look at what is a normal customer lifetime value, then we're going to dig into strategies to achieve higher customer lifetime value. So first is acquire more customers, acquiring better customers, increasing our reorder value, and keeping customers coming back. Then we'll look into making this work for you, followed by Q and A. With that, I'll turn it over to Anita to get started.

Anita Andrews: Great, thank you, Susannah. So let's start out by setting a baseline for what a normal CLV looks like. We often hear what's a good CLV, but let's talk about what a normal CLV is. A few caveats that I need to jump into this conversation with. When you're looking at benchmark numbers, you have to remember your metrics will vary. A single benchmark isn't the end all be all of your business's performance. You should use these numbers to guide how you think about the dynamics of your business. So with that out of the way, let's start at the highest level. Here's what average CLV looks like. When we first did this analysis, we looked at actual lifetime value, then we looked at three year lifetime value, and what we found is that analyzing the data in this way, limited our ability to uncover really great insights, while actually adding very little additional value because the vast majority of lifetime value comes in the first 30 days, and almost no additional value is added after the first year. ECommerce customers just don't stick around that long. So that's what average looks like.

Now let's look at our top performing companies. As part of our research, we split our sample size into 4 quartiles, the top 25% representing the fastest growing companies. We saw that the fastest growing companies have a CLV 79% higher than their peers. Their average customer spends more per order and also orders more times over the first year. We're going to go much deeper on these during the course of the webinar, and before we jump into that, I want to point out another important difference about these companies. They also acquire customers dramatically faster. Look at that line. So top performing companies are acquiring more customers that spend more per order and purchase more frequently. What you've already seen from the data is that CLV and company performance go hand in hand. It's certainly possible to build a successful eCommerce company on one time purchases, but it's going to be very difficult.

What we found in our research, and none of this is very surprising, is that the growth of those top quartile companies is being driven by these four things: faster customer acquisition, smarter customer acquisition, higher average order value, and higher customer retention. So now let's go a little bit deeper on all of these. While this isn't the case for every company, when we're talking about the fastest growing eCommerce companies, quality and quantity in customer acquisitions go hand in hand. So for the rest of this discussion, I'm going to keep them grouped together. I showed you earlier that the best companies acquire customers dramatically faster and the average customer is worth $154 in their first year. So now let's dig into what's behind those averages. When we look at customers by percentiles, we see a dramatically different picture. The top 10% of customers is worth six times than the industry average. The top 1% is worth 18 times more. So again, let's leave the average behind and filter out these outliers and look at the median.

When we ignore those outliers, we see something very different. The median eCommerce customer is worth about $65 in their first year. But somehow these companies are getting higher value customers and more of them. What's happening here? I'm going to hand it over to Hub Spot to talk about some of these specific strategies they see that can help you get more customers and get the kind that are worth 18 times more than your average customer.

Morgan Jacobson: Ok, great. Thank you so much, Anita. And as she just mentioned, we're going to talk about identifying these customers that you do and don't want on your website. We'll talk about the difference between algorithmic and narrative personas, and then talk about conversion opportunities that go beyond the checkout. So let's start off with the kind of customers that you do want. All right? So to acquire better customers, you really need to answer two questions, and developing personas is going to help you with this. So the first question you have to answer is this one. So you're trying to get the right message, to the right people, at the right time. Buyer persona is a way for you to identify the kinds of customers that you want. All right? So there's two different kinds of information that we use, demographic and behavioral information. Really what types of content or experiences attract them, and what kind of messaging and channel influences their behavior, all right? So a really good example from a company called Got Beauty. These are the personas that they created. They market to different personas differently and can track across the different leads, qualified leads, and customers who are actually converting and spending the most amount of money.

So you can also use personas to identify who you don't want on your website. And these are the four different kinds of those customers that you really don't want that just suck up money: Service demanders, these are the folks that hog your support line, your chat, or your customer service reps. Revenue Reversers, these are people that buy things and then return them. Promotion Maximizers use up all of your promos and bleed through your margins. And then Spending Limiters. These are people who are never going to spend enough to recover the actual marketing costs. They don't respond to any cross sale or up sale opportunities at all. All right? So in addition to just algorithmic personas, we want to really ensure that we're creating personas for the different kinds of behavior that people experience. So, a really good example is just because someone bought a running shoe, doesn't mean they want another running shoe. A narrative buyer persona would include thinking outside of the box and then sending them ancillary products like a running hat or a running watch that can help them to track their progress. Okay?

Now that you have these personas, you need to connect with them. So on a basic level, you just need to bring together the right content at the right place at the right time. Just make sure that your marketing is relevant and can really be helpful to your prospective customers. Content brings them in, but then context brings them through the funnel to purchase. It's a really critical part of your strategy to convert more and better customers and enables you to differentiate yourself from the other eCommerce customers out there. Which brings us to the conversion opportunities most eCommerce websites actually use. So, we all know the subscription, right? Subscribe for an email, subscribe to the blog.

There's discount opportunities, right? Giving 10% off. And then lastly, there's adding something to your actual cart, right? So how do you create another conversion opportunity to help you learn more and engage with your persona? The answer is pretty clear, and it's what we're talking about. It's using content at the right time. It's a really good opportunity for you to learn about your prospective customers via forms, and we'll look at some examples shortly, as well as an opportunity to start your conversation with them when they're in that really early research phase in the buyer journey. So competing in the research phase will definitely give you a leg up on your competition because you begin building that relationship with your customers even before they're actually ready to buy something.

You really do need to create a framework of offers that appeal to visitors who aren't quite ready to buy but will like to learn more. And by placing these on highly trafficked pages on your site, you can cultivate a database of contacts to engage with via email marketing, enroll in automated email nurturing to continually drive revenue. But what do these offers look like, getting started with a pretransactional lead generation strategy we know can be challenging, so we prepared a few examples of content that you can actually use for these kind of offers.

So here's a company called Yale appliance. They obviously sell appliances, lighting, plumbing, heating, and things like that, larger ticket items that are a much more considered purchase. So to help folks who are doing research online long before they're ready to buy say a new oven. How to find an oven that is perfect for you, or the refrigerator buying guide, counter depth refrigerator buying guide. So a product buying can consist of what folks should consider when buying a certain product. It could be a brand comparison with reviews, a feature break down of different models and brands, or frequently asked questions. They've got a resource center that's really geared towards educating, and they've done a great job of growing their followership using that.

Another business model that's been exploding is the subscription box business that I'm sure you've all seen. Everything from snacks to clothes to pet treats. If you want it, you can get it delivered to you monthly in a curated box. So since signing up for a monthly box service can be more of an impulse purchase than a research driven purchase, pretransactional offers are harder to find. A prime opportunity to capture lead information is allowing visitors to actually preview a box based on their preferences. Right? So while this can require a little bit of coding, the result is a quick and easy way to give those tirekickers a taste of what they would be signing up for, while gathering their email address and some preference data.

And this preference data is super valuable because you can actually use that to personalize the emails that you send to them after and give them different content based on their preferences. You can deliver the customized box preview via email or reroute them to a page with a preview, but the end result is really the same. You get a new lead in your database that you can nurture into purchasing. So a fantastic example of a box preview offer is Citrus Lane's How It Works page, right? This call to action encourages you to put in the month and day of your child's birth to see what's inside the box. Then based on your child's age, you're given different examples of the kinds of products that the box includes and you also have the option to explore example products for other age groups.

For a health and wellness eCommerce site, there's a few different directions you can go, so I've actually included two examples. One for a recipe book and one for an educational guide. Recipe books are really good way to engage your website visitors with fun and tasty content. Think of five to ten delicious recipes that incorporate your products, then add attractive images and easy to follow instructions. So Radiant Life Company has created a series of recipes books called the Radiant Life Guide to Real Food. This series includes a guide to making coconut flour bread, which is a fantastical example of a recipe book, as one of these pretransactional offers. As you can tell from the example below, it combines really nice photographs of coconut flour bread with simple, clear recipes, instructions, and tips.

The second example is a more educational guide. So with this type of guide you can provide detailed information about your most popular products including their origin, why they benefit the consumer, scientific facts and data, and best practices on how and when to consume them. Greens Plus offers the Beginner's Guide to Super Foods that does all of that. So much like appliances, people will often do research online before starting a new diet, or supplement, or anything like that. So, the general theme here is to provide helpful and informative content. It's going to make them much more likely to purchase from you, especially if you follow up with email nurturing. All right? And content also gives you more opportunities to learn about your prospective customers, as you can see from the form here. The more you know, the more you can personalize their experience on your website with relevant and timely products.

Susannah Morris: Great, so the next thing top performing companies are getting right is around AOV. Top companies have an AOV that is 36% higher than the other companies. Morgan, can you share some examples of what you see your clients getting right in this area?

Morgan Jacobson: Sure, so there's really three main strategies that we work on with our clients to increase that AOV. One is on site personalization and segmentation, there's also product page recommendations, and then upsale and cross sale opportunities. So let's first look at on site personalization and segmentation. This a customer called US Patriot. They provide this relevance to their prospective customers, you're really helping their personas by showing them the things that they're interested in. So in this example, their entire homepage can be based on your interests, from the banner to the items on display, brands, categories, and things like that. Looking closer, here's the first two sections of the website for someone with just a general interest who we don't have any data on. They sell apparel to different areas of the military. So you can see there's a number of different examples.

Now once we've already made a purchase, they actually personalize their website, in this example specifically, for the Airforce persona, we know they purchased Airforce products in the past, so we serve up relevant products right there on the homepage related to what they previously interacted with. Another example of on site personalization beyond your entire homepage, like US Patriot, is actually using product page recommendations. It's a great opportunity to drive up sales and cross sales by getting products that your customers may be interested in and in front of them. And you guys probably see this a lot. In addition to on site, you can do this in your email marketing as you can see, there's a few good examples here, where you get the follow email after the purchase, and you can actually really develop that up sale and cross sale strategy right there in the follow up email.

Susannah Morris: Great, so we saw, at the beginning, that the fastest growing companies have a higher average number of orders. You can see this play out here in a different way. By year three in business, top eCommerce companies are generating nearly 60% of their revenue from repeats. And remember, this is while they are maintaining aggressive acquisition numbers. This is particularly impressive when you look at how difficult it is to get customers back. Most of them will simply never purchase a second time. But those that do come back, tend to purchase again, and again, and again. So how do you get them to that second purchase?

Morgan Jacobson: Sure, so another three bullet points that we'll cover here are abandoned cart nurturing, reorder marketing, and then re-engagement campaigns. So there we go. Abandoned cart nurturing is definitely one of the easier ways to keep folks coming back, so if they've already added something to their shopping cart, we know they're interested in making a purchase. Instead of trying to find new customers, you should really work to engage those prospective customers who are interested but, for whatever reason, haven't made a purchase. Automization and personalization are great ways to do this. And as you can see, about 60% of eCommerce marketers don't even know that rate, so definitely something to start tracking. So ModCloth is a great example here. This was the first response on twitter. People have figured this out.

A lot of people will just automatically abandon their cart so they can get a discount, and then they actually tweet it to their whole network, so you want to be a little more creative. Personalized emails improve click through rates by 14%, and there are many ways to personalize your abandoned cart nurturing that we can cover. Again ModCloth, really good example here. They include the item in the abandoned cart as well a call to action for why you should come back and buy it, because it's nearly out of stock. So rather than just saying here's a 5% discount, we say, "Hold up, you better hurry up and come back." Okay. They personalize based on the abandoned item as well, and combine it with up selling and cross selling. So guilt goes with the upsell, they include the abandoned cart email as well as a more expensive option to try to get some more AOV for the individual customer.

And in this case of West Elm, they go for the cross sale, where they include items that you might want to buy, like a dining table or a bed, etc. If your product is consumable in any way, just like your abandoned cart workflow, you should use marketing automation to set up reorder marketing. Cringle Candle, really good concept here, they know their candles typically burn through in about 20 days, so 25 days after purchase, they automatically trigger an email including a recommendation for a similar product like the fresh and airy collection based on what you purchased previously.

Tied into reorder marketing, you can also add a subscription option on a consumable good. It's an easy way to give your customers the option of becoming repeat customers with a single click, increasing their lifetime value. Now even if your product is not consumable, you can create re-engagement campaigns to bring customers back. They've already bought from you once, re-engagement to purchase from you again. And as you can see Wild Idea Buffalo and the Gap are both really good examples of this. Just make sure that you are staying top of mind and you're personalizing in some way and it will work out for you. So how do we make this work for you? There's four drivers fueling performance in today's fastest growing eCommerce companies, and again, it's acquiring more customers, acquiring better customers, increasing that average order value, and then keeping them coming back. These are the four things that everybody has in common.

Another common thread, you have to think about the entire lifecycle. People who are early in the relevance phase are not going to respond in the same way to folks who are actually ready to make a purchase, you have to be cognizant of that. And then optimizing for...

Anita Andrews: Thanks Morgan, I know you were probably getting ready to get started here, but really, one of the best ways to get started with all of what we've been talking about here is optimizing for quality and that's about marketing ROI and attribution. One of the most common mistakes we see companies making is calculating ROI based on their first transaction. Using CLV in your ROI measurements will show you the campaigns that bring in customers who spend again and again. This is how top performing companies are fueling growth. They're able to get off the acquisition hamster wheel by investing in campaigns that bring in repeat customers who spend more. Without that layer of loyal customers, accelerating growth is difficult if not impossible.

Susannah Morris: Thank you so much Anita, just a quick plug here, we actually have a dedicated team of eCommerce specialists focusing on helping you succeed and helping you increase customer lifetime value. If you're interested in a personalized assessment, feel free to follow this link, we'll also send it out in the followup. So we now have about ten to fifteen minutes to take some questions from the audience. Thank you to everyone who's already participated, but you can submit questions in the chat team if you haven't already and we'll get to as many of them as we can. So I'm going to start out with a question from Ted for Anita. The question is what are some characteristics of top performing companies.

Anita Andrews: So I think what's interesting is that the top performers' rapid growth is likely a result of their product and market fit, it's not just the marketing. That's about the amount of orders. By about 6 months, top quartile companies are bringing in over three and a half times the number of monthly orders as the next quartile. And top performers maintain this rate throughout the three year mark. So they've got great marketing, they've got great analysis, but they're also really focusing on the fit between their product and the market.

Susannah Morris: Great, thank you Anita. We actually have a question for Morgan up next. It's a question from Spencer. It's How do you create buyer personas, what is the process there?

Morgan Jacobson: Yeah, so there's a number of ways to collect information. You can do customer interviews, you can do on site behavior like the pages they look at, purchase history, etc. There's actually a free tool you guys can check out as well, it's called makemypersona.com. Helps you collect the information into a usable persona.

Susannah Morris: Great, thank you Morgan. And a question for Anita. How quickly do you need to get a customer to buy again after their first purchase?

Anita Andrews: Well, most spending occurs in the first 30 days after the first purchase, so your window is actually pretty small. And this is why here at R.J. Metrics we actually, with all of our ecommerce companies, who obviously get so busy with the end of year holiday season stuff, we say the time to start retaining your customers is not once the holiday rush is over and into January, it's the day after the purchase. Right? So while you're working on acquiring customers in the holiday season, you need to be working on retaining them right away as well.

Susannah Morris: Ok, great. And Morgan, you touched on negative personas. What should we be doing to avoid them?

Morgan Jacobson: Sure, so there's plenty of analytics tools that allow you to track your marketing efforts and really identify what's bringing those bad folks in. So it's possible that some of your marketing attracts more of your negative personas, like if you're sending out a bunch of discount emails, and people only buy on discounts for example, something like that. So you want to see if there's ways to identify them before they purchase as well.

Susannah Morris: Great, thank you. And another question for Morgan. If you can only do one thing to increase customer lifetime value, which of the best practices that you covered would you recommend?

Morgan Jacobson: It's definitely personalization, this is the hot topic that everyone's talking about and not everyone's sure about how to do it. So as an eCommerce company, you're collecting so much data on the purchase history and interests of your customers. Just make sure you're making the most out of that information and like we talked about today, personalize your email and other channels. So on a basic level, you need to bring together the right content in the right place at the right time to make your marketing relevant and helpful to prospects.

Susannah Morris: Ok, great. Oh wait let me...Bear with me for one second. So we have another question. For shopping cart abandonment, this is for Morgan, How important is it to include the abandoned item?

Morgan Jacobson: Yeah, you really need to make sure that you're doing that. Without the abandoned item, that's impersonal and it doesn't remind them as to why they were there the first time. So if possible, you always want to include that item and then maybe even a cross-sale item to see if you can get more.

Susannah Morris: Great. And just building off that, we have another question. For including those abandoned items, is there a way to have your shopping cart communicate with your email or what's the process there?

Morgan Jacobson: Sure, so there's tools out there like Hub Spot, for example, that allow that so you can pass over that relevant information and then actually use that for email. Cringle Candle, the example I mentioned earlier, a really good example, using their shopping cart Magento, syncing that up with Hub Spot, and then using that to send really personalized abandoned cart and upsale and cross sale emails.

Susannah Morris: Great, thank you. And another question. With people who have products that you can't necessarily have a guide for, you looked at some examples of content, but could you just recap other options beyond just a guide if you don't have a big ticket item?

Morgan Jacobson: Sure, it can be a recipe, it can be a contest, it can be anything that's not focused on getting the credit card number and this is where the creativity of us, as marketing professionals, has to come in. For example, Hub Spot has a tool called Website Grader that we give away, and it's been a really popular thing, something cheap and easy that we created that can lead to a lot of new email addresses.

Susannah Morris: Great, and going off that, it sounds like you didn't...you steered eCommerce retailers away from the coupon. I know that for a lot of ecommerce retailers, that's sort of the default. So are you saying that people shouldn't use coupons? That's actually a question coming in from Julianna.

Morgan Jacobson: Yeah, so it's not to say that you should never use coupons, but it's something you have to track. If that's bringing in a lot of people who are only purchasing on a coupon and not coming back, you can actually lose money and it can actually be a race to the bottom. So I'm not saying you have to completely stop using coupons, but you should incorporate good content marketing into the mix and really start building relationships with folks, rather than just saying this is cheaper today, and you can buy it for 10% off.

Anita Andrews: Yeah. And I'd like to build upon that. This has been an...I'm sorry, Susannah, is that ok?

Susannah Morris: Oh yes, of course.

Anita Andrews: Yeah, it's interesting that you mentioned the coupon and the dive to the bottom. Here at R.J. Metrics, what we see a lot of our customers spending time now on is exactly that analysis. So we all know that last holiday season [inaudible 00:28:25] the margins but, felt like they had to give away everything in order to compete with competitors or just the general landscape around evaluating where to spend your shopping dollars. And so I think what is a good thing for folks to...what we see our best customers honestly doing right now is as they're preparing for what's their marketing strategy,you know, not the brand marketing strategy but the actual campaigns going into the holiday season, which you really need to get under your belt now, is understanding what happened with those coupon customers.

Some coupons drive repetitive competitive coupon feeders, some campaigns or some coupons drive the folks who actually start to expand beyond that. And running that kind of analysis on your base of customers who, now you've got almost say 8, 9 months here of data is really going to inform what you decide to do at the end of this year. Which again, doesn't have to be a race to the bottom of just giving away large discounts.

Susannah Morris: Thanks for adding your perspective on that Anita. We also have another question for you. We talked a lot about the top quartile here, what should you do if you realize that you're not in that top quartile? Do those best practices still apply to you? Is that something you should still be pursuing?

Anita Andrews: Yeah, absolutely, this isn't a "Hey, if you're not in top quartile, give up and go home exercise." I don't think that...That's certainly not the message here. But I do think this a great time to spend a little bit on this whole notion of looking at benchmarks and evaluating yourself against it. Also what we see with our customers is not only are they evaluating themselves against benchmarks, or first trying to find the benchmarks and then evaluate themselves against it, but also they're trying...they've got investors, potential investors, future investors, etc. that are evaluating them against those benchmarks.

And really, the exercise here is to understand where you are now and make sure you're hitting the curves and the patterns that your quartile is subject to. Right? So if you look at our eCommerce benchmark report, which I know is available on the website somewhere, maybe we can get that tweeted out. But you want to make sure that if you're in that second quartile, make sure you've got the analysis in place and the practices in place to make sure that you maintain that second quartile. And then take some of these tactics and really look to see if you can start to bring yourself closer to that top quartile. But it's not about saying, "Hey, I'm not as good as that one, I shouldn't apply these practices," or, "This type of information isn't for me," or maybe, "There's no hope."

But the question of trying to understand where that delta is. Maybe you're getting the customers correctly and maybe they're spending enough on that first order, but you're not doing so well on the repeat and the lifetime value. And trying to figure out where those differences are between you and the next quartile up is where you can take these exact same things that we've been talking about and apply it so you can start to bend your own curve relative to your quartile in the right direction.

Susannah Morris: Great, thank you. And we actually have a question for Morgan. Going back to the negative persona thing, we have Dan asking, "How do you know when you don't want those certain customers?"

Morgan Jacobson: Sure, so it's the same as collecting your positive personas. You collect that information again. You look at their onsite behavior, their purchase history, and see if it's lining up with the positive margins. You can start creating and forming these personas based on that activity and then come up with a good marketing strategy to avoid bringing those folks in. If it's a certain kind of email that brings them in that you're sending out or a certain adware program that you're running that brings them in, it's time to reevaluate those programs.

Susannah Morris: And then, following up from that, in terms of actively trying not to interact with those negative personas, will that help you get into the higher quartile?

Morgan Jacobson: Yeah, exactly, 'cuz it's going to bring up that average order value. It's going to allow you to align yourself with the upsale and cross sale because you're getting those people who are actually responding to that thing, and all of those metrics that Anita brought up, this will allow you to start moving the dial if we're getting the right kind of folks there, by using the positive personas and avoiding those folks who drive those metrics down.

Anita Andrews: Yeah, and I would add onto that to say that not only if you focus on the right people will your averages go up, but it's important even before you start seeing that value or that return in your averages to run that analysis based on those different personas and ensure that you...It may be the case that you feel that you're in that second quartile based on looking at your entire customer base, but what would it look like if you took out the people that you really don't want, where are you really? Because that let's you know that there's...It gives you a much better sense of where your business truly is and what the potential truly is vis a vis whatever quartile you want to move to next, or honestly whatever KPIs you want to hit for your business. So taking those people out, even if you just run the data will help you have a better understanding of where things stand for you.

Susannah Morris: Great, and we have a question actually from Patrick. So we talked a lot about email today, this is for Morgan. Are there other ways that you can do this, say like in social media?

Morgan Jacobson: Yeah, totally. The best ecommerce businesses are also monitoring their social channels with any number of monitoring tools like Hub Spot. And you can actually see when there's say a customer service issue or people who are interacting with your brand or competitors' brands on a place like Twitter, and then very quickly respond to them with a helpful offer, a blog article, a guide, something like that, to get this whole process started.

Susannah Morris: All right. So a followup to that, from Patrick is, do you think you need a dedicated community manager to do that, or if you have a smaller marketing department, do you think it's possible for just your marketing team to do that?

Morgan Jacobson: Yeah, it depends on the business. Ideally, it'd be great to have somebody who's managing your community and their whole job is to build up that relationship online. We understand here that not every business has that ability, so as long as there's somebody spending some time and you have a streamlined way to get notifications about people mentioning certain things on social media, you can get by pretty well.

Susannah Morris: Great, and now a question for Anita. How do you measure your customers' lifetime value to determine which customers you want to target?

Anita Andrews: So I think there's a few different options here and it really depends upon the particulars of your business. If you're a longstanding business where the dynamics within it have stayed relatively stable, then I think you can look at any cohort and measure the transactional activity that they produced, and get a good sense of the CLV. On the other hand, if you've really changed some things in your business, for example, you've switched from straight AdWords spending to acquiring a lot more customers through lead gen or through social spending, etc., then you need to be able to look at where you are headed and filter out those customers, do that cohort analysis based on the customers that you're dealing with right now and measure the CLV from there.

Susannah Morris: Great, so thank you, Morgan, and thank you, Anita, for presenting for us today. And also thank you to everyone on the line who has joined us today. We hope you enjoyed the discussion as much as we did. Look for a recording of today's presentation by the end of the week, and stay tuned for future webinars. Have a great day.