The Solution – 2
It is time for marketers to not fall victim to the streetlight effect and approach the problem differently. The starting point has to be to focus on the bird in hand (existing customers) before imagining the two in the bush (future customers).
The new agenda for marketers (and CEOs) need to be the following. Think of the attention of customers as the starting point rather than focusing on transactions. Use atomic rewards via Web3 (crypto tokens) to solve the attention recession problem and improve retention. Leverage Martech 2.0 solutions to get past the limitations of Martech 1.0 to drive repeat transactions. Use Velvet Rope Marketing to prioritise the creation of differentiated experiences for Best Customers and maximise customer lifetime value. Consider referral marketing as zero-cost acquisition. Replace reacquisition with reactivation. Use martech data to sharpen targeting for new customers to reduce adtech spending and thus reduce wrong acquisitions.
Here then are the five shifts which brands need to make:
- Retention: shifting focus from transaction to the upstream (attention, engagement and habit creation), to stop customers ignoring push messages and thus creating an omnichannel and persistent hotline to them
- Solutions: Messaging 2.0 (especially Email 2.0), and Crypto Tokens (Mu)
- Repetition: shifting focus from ordinary/commoditised experiences for all customers to memorable/differentiated experiences for Best Customers to maximise their CLV, complemented by crypto/Web3 incentives
- Solutions: Velvet Rope Marketing (with CDP, CLV, BCG) and Martech 2.0 full stack for Unified Customer View
- Referrals: shifting focus from inefficient link/code-based requests to targeted marketing which leverages network effects, thus sharply reducing cost of new acquisition
- Solution: Referrals 2.0, and Crypto Tokens (Mu)
- Reactivation: shifting focus from using reacquisition via adtech platform to leveraging a new-gen martech product-led agency to reduce deactivation and drive reawakening
- Solutions: Progency, which works on KPIs and is paid based on performance
- Replenishment: shifting focus to from random new acquisition to smart, high-value acquisition
- Solution: Adtech-Martech Bridge, with use of martech data to drive targeted new acquisition
Martech 2.0 brings a connected suite of solutions for winning customers’ hearts and money for life. It is anchored on two new ideas: atomic rewards (micro-incentives for changing behaviour) and Progency (a product-led agency that works as an extension of the in-house team, and works on KPIs – just like adtech agencies). Web3 adds a crypto layer via tokens – to power pan-brand atomic rewards. The crypto tokens, overseen by a DAO (decentralised autonomous organisation), are not a property of a single entity; they are a form of value change between brands and customers, without an intermediary.
This integrated construct of Martech 2.0 and Web3 brings together ideas from loyalty, gamifying and crypto to solve the 3 biggest problems faced by brands and marketers: attention recession, limited loyalty, and a cost-effective solution for new acquisition. It is about working at a new level (existing customers instead of new customers) and a new model (using own zero- and first-party data rather than Big Tech data).
These 5 Rs are the secret to exponential forever profitable growth. My belief is that for every additional dollar spent on martech, brands will be able to shave off two dollars from their adtech budgets. The savings thus generated will help drive the profits.