How marketers can win in today’s value economy
Tifenn Dano Kwan, CMO at Amplitude, explores how businesses in Australia are adapting to an era where delivering consistent value is paramount.
The old saying is true: change is the only constant in business. And for businesses in Australia, the pressure is immense.
Over the past decade, traditional enterprises have pivoted their operations to embrace digital experiences and run their business online. At the same time, a new generation of startups has disrupted industries, introduced cutting-edge technologies, and irreversibly changed what people expect from their technology.
It’s no longer enough to just embrace digital channels. You need to deliver consistent and undeniable value. More than half of Australian consumers will switch brands if they are dissatisfied with their digital commerce experience, so the stakes are high. This brings us to the value economy, a new era where all sources of revenue need to correlate with the value products bring to customers.
So, what does this shift mean for marketers? And what should marketers do to stay ahead of the game? It’s time for marketers to rethink their strategies. Marketing-qualified leads (MQLs) are no longer enough. Teams need to devote more time and focus on building personalised experiences and creating long-term customer value.
Identify ownership of the online business
One of my favourite questions to ask is, “who owns your customer experience?” Of course, the correct answer is everyone. But that’s exactly what makes it complicated. Teams across ‘go to market’ and product development all play a role, and as a result, customer data and decision-making powers are scattered across multiple channels, systems, and teams.
In some cases, the chief marketing officer is the owner, overseeing web, growth, and digital strategy in addition to traditional marketing functions. At other businesses, we are seeing the rise of the chief growth officer as a distinct role, either within or outside the marketing department. In companies with dual online and sales-led revenue routes, the chief revenue officer may hold the entire number.
In product-led growth companies, the product team may operate as the general manager of the business, meaning they are responsible for — and must be well-versed in — the mechanics of driving online revenue. Last but not least, there are some cases where CMOs, CPOs, and CROs share ownership.
There is no definitive right answer regarding who should own the online business, as this varies based on the nature and resources of each business. However, establishing ownership is crucial for streamlining processes and utilising customer behavioural data in an effective way. A key consideration is the growth rate of your online business. While appointing a single owner is often the most likely outcome, starting with shared ownership can be a strong foundation as you work towards greater organisational maturity.
Focus on the entire digital customer journey
How many times have you downloaded an app, created a profile, and then never opened it again? You didn’t find value immediately, so you abandoned the product without a second thought. We’re all guilty of this, and it’s exactly why retention has become the lifeblood of any business.
While acquisitions were once the defining growth metric, revenue from existing customers is becoming critical for sustainable growth, especially given the economic pressures facing Australian consumers. Teams need to balance their efforts across acquisition, monetisation, and retention in order to drive better, long-term outcomes and returns.
Part of the retention equation requires leveraging customer behavioural data. This data reveals what features or experiences will likely make customers return or repeat purchases. But insights are only as powerful as the actions you can take with them. With behavioural data, marketers can double down on the preferred customer experiences to increase loyalty and purchases. Within highly competitive markets, the companies that successfully leverage behavioural data will set themselves apart, offering more personalised experiences within and beyond their digital product.
Demonstrate true ROI internally and externally
ROI should be at the centre of everything we do as a business, but can you truly measure it? Teams are quick to share online metrics like page views, bounce rates, and conversion rates, but those don’t always explain how their work ties to revenue.
Instead, companies should ask: How do you connect these online metrics to business growth? Economic impact measures like net revenue retention, annual cost savings, reduced churn, and lowered customer acquisition costs (CAC) have become essential. These metrics are invaluable for garnering deeper, tangible insights into your business. Marketing leaders are tasked with reporting to the C-suite or the board on ROI, and the more they can highlight the impact on revenue and cost savings, the greater they can drive business growth, trust, and predictability.
The other way to showcase product ROI is through customer stories. Historically, many companies have hesitated to disclose figures related to revenue growth or cost savings, but a growing number are now willing to share and celebrate these milestones. Late last year, we launched a targeted campaign to tell our customers’ success through ROI metrics. For marketers, highlighting ROI internally to leadership and externally to customers and future prospects is now an essential part of the job.
The value economy is here — and like any change, the companies and leaders who don’t adapt to the times will fall behind. People want products tailored to their tastes and preferences, and with the right data, marketers can adjust their strategies to deliver these experiences. By determining online business ownership, leveraging data from what drives customer acquisition and retention, and clearly demonstrating true ROI, online business leaders can power growth.
When you demonstrate lifetime value, you can win the trust of your C-suite executives and customers alike.
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