In my latest article, I’m going to talk about getting new customers and the value they bring to your organisation throughout the time that they are your customers.
You have to take your time for them to get to know you and your product or service. Get to know you to such a rate that they fall in love with you and start buying your product or service.
In every business niche, there are always competitors to be found, advertising costs are rising, implementing a good content marketing strategy for long-term SEO success take time and money and even specific acquisition campaigns you’ve started might not return customers quickly enough.
When you look at the value a customer is bringing to your organisation; it is tempting to only look at the here-and-now. Someone clicks on one of your ads buys your product or service, and there is a specific ROI you can calculate as a result.
But that is only a one-off set of money coming in. What about the lifetime value of that customer? What could that customer be worth over a longer duration of the relationship that she or he is having with your brand?
When you start to understand your Customer Lifetime Value (CLV), you will begin to see the evidence that it is indeed much easier and cheaper to sell to an existing client than it is to acquire a new one.
Instead of you having to run awareness ads, using lead magnets, hiring a staff to do sales calls, you can merely upset the people you’re already having.
So in my latest post on the Inbound Rocket blog, I will be diving into CLV, what it is, how you can calculate yours, and how you can improve the relationship you have with your most profitable customers so you can focus on them and grow your business.
Today they are playlists, yesterday they were mix tapes. Either way, we still have the ultimate summer playlist ready to go at a moment’s notice!
We all have a different moment of musical awakening. Was it the first time you heard Nirvana on the radio? Was it the time you went to a fair in your hometown and heard that amazing country song? How about hip hop? Let’s not forget the songs that give us dance inspiration and remind us to be carefree from time to time. Remember when you had to wait all day to hear your new favorite tune on the radio just to press record to on the cassette player? You really had to work hard to make the ultimate mix of party music and pop hits! Thankfully technology has come a long way and you won’t have to wait all day to hear your favorite song, it is easily at your fingertips and accessible to listen to 100 times. I still love blasting my stereo with the windows down on a beautiful summer day and forgetting my troubles. When thinking about the perfect summer playlist of boy bands, iconic divas and those one hit wonders, what would you include on your ultimate summer playlist?
I’ve slowly developed into a novice audiophile over the years and have certainly enjoyed hearing new music, seeing live shows and finally expanding into the last unheard genre for me, country. Plus, the amount of free music available to us now is greater than ever before! Spotify, Pandora and SoundCloud have given us the gift of endless playlists and the opportunity to break in the main stream. Whether it’s lying on the beach or stuck in traffic we can easily sail away when our favorite songs come on!
Now that you’ve already started your walk down memory lane, let me share some great summer inspired tunes!
The rise of beauty bloggers and YouTubers is having a profound impact on the European makeup market and encouraging consumers to be bold in their product choices. Millennials are the main target, but already brands are looking to their younger sisters, Generation Z, who are even more digitally engaged and adore beauty. This trend is creating a rich, fast-moving environment for brands to launch exciting and innovative products.
According to Euromonitor International, Western European makeup sales approached $12.8 billion last year and are forecast to grow 3.8% annually to 2021. The UK is the strongest European makeup market with 2016 sales of more than $2.8 billion, followed by Germany at nearly $2.1 billion. The biggest growth driver in the UK has been millennials, who are a key target for makeup brands, largely due to the demographic’s love of selfies and penchant for tattoos and piercing. In Germany, brow products have been a major trend with almost all brands promoting eyebrow products in various formats.
The NPD Group valued the UK premium makeup market at more than $1 billion in the 12 months to June 2017 period, more than double any of the four European markets it covers (France, Italy, Spain and the UK). The UK’s growth rate was an impressive 11%, compared to 5% for Spain, 2% Italy and no growth for France.
“This year, makeup remains the key growth driver category in prestige (channels), strongly influenced by millennials and social media activity as in past years,” commented Mathilde Lion, beauty Europe industry expert, The NPD Group.
She observes that lip color in particular has been strongly pushed on social networks and has benefited from strong innovations such as liquid matte lipsticks and audacious colors.
“We can also bet on a ‘lipstick effect,’” she continues. “In a period of uncertainty and weak economies in some countries, women can treat themselves and allow themselves to spend on one of the less expensive categories in prestige. It’s easier to buy and use a lip color from a prestige brand at $30-$35 than a bag at more than $2,000.”
GlobalData’s European research into makeup confirms this trend. According to Mayu Teeven, associate analyst, GlobalData, more than half of UK consumers claim that general appearance is importance and a further third are willing to increase the number of products they use to improve their appearance.
“These factors create an opportunity for makeup since consumers will make more indulgent and expensive purchases since they are considered an affordable luxury,” said Teeven.
The latest usage data by Kantar Worldpanel shows that three out of four Polish women wear makeup every week, the highest of any European country. Elsewhere, the average penetration is 50-60%. Polish women apply makeup more frequently than their European neighbors, averaging 17.1 times in a week. Most European women put on makeup for work or school, but Polish women are much more likely to use it as part of their look whenever they go out. Some 35% of Polish women wear makeup to give themselves confidence and to feel attractive with one in five using it to define the shape of their eyes or to create a specific look.
Much product innovation in makeup is aimed at the younger generation of millennials and their younger sisters, Generation Z, aged 14-21. At the Packaging Innovations Beauty Forum 2017 in London, Sara Jones, partner at design agency Dew Gibbons + Partners, presented research showing that for Gen Z, digital is embedded in everything they do. These young consumers are addicted to YouTube makeup tutorials, but are not brand loyal and will readily switch if a friend recommends a product or they see something new that catches their eye, usually on Instagram or Snapchat.
“Beauty brands will need to think digital and fast or miss out with this hugely engaged demographic,” she explained.
Her recommendations to beauty brands were to use simple, large, clear icons and bold block colors that work on every device. Her examples included ASOS, Topshop, Wet n wild, 3INA and Glossier Cloud Paint.
Cushion makeup, a South Korean invention, has been adopted by many big beauty brands, including L’Oréal, Lancôme and Bobbi Brown. One notable UK launch, according to GlobalData, was Estée Lauder’s Double Wear foundation line, which now includes Cushion Stick Radiant Makeup with a built-in removable sponge tip for cleaning as well as taking excess product back into the container.
“The functional packaging differentiates the product from other cushion makeup items on the market as it addresses hygiene concerns and helps avoid waste,” observed Teeven.
Another Korean inspiration is the cute Sephora Collection Blush to Go in France, which imitates the appearance of Eastern Asian makeup packaging. This range of blush sticks combines a cream texture and powder finish and is aimed at younger women who like to share their beauty regime and brands they use on social media.
Convenience is a major factor in the development of new makeup formats, such as eyeliner and lip products. For example, Lancôme Grandiose Eye Liner, on sale across Europe, features a unique bendable, pivoted applicator that can bend up to 35 degrees to make application easier and allow consumers to modify the application method. The handle on the closure locks securely into position with an audible click, which Teeven said could be potentially added to mascara closures, again to improve the application process.
Benefit Cosmetics’ new They’re Real! combination lipstick plus liner. This 2-in-1 product features a tear drop shape that is darker at the tip to create the lipliner effect, while the lipstick is applied by swiveling the product.
Looking forward, there are strong opportunities for brands to develop products that consumers can tailor to their mood, lifestyle or makeup needs. Teveen predicts consumers will be able to blend formulas “fresh” for a bespoke makeup experience. Whether this trend will appeal to the all-important youth demographic, only time will tell.
Imogen Matthews is a respected consultant, journalist and researcher focusing on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles. Every year in April, she publishes The Premium Market Report, focusing on trends in the UK premium beauty markets.
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