Full Picture
These three slides show the solutions, and their impact on profitability.
The 1250 basis points increase in profit margin can be largely driven on a performance basis – with the brand agreeing to share a fifth of that with the entities helping drive the upside, thus leading to a 1000 basis points increase being captured and retained by the brand.
This is the huge untapped opportunity in marketing. Globally this can lead to hundreds of billions of dollars in retained profits for B2C/D2C brands and open tens of billions of dollars for new age martech SaaS vendors willing to add a Progency complement.
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To summarise, here is a 5-step roadmap for marketers:
- Optimise Customer Segmentation: Utilise the BRTLNG framework (Best, Rest, Test, Left, Next, Guest) to understand customer behaviours and value.
- Reactivation for Revenues: Prioritise re-engagement of ‘Test’ and ‘Left’ customers to reduce ad spend waste, employing Email 2.0 Reactivation Progency to revive dormant and churned relationships and convert them into profitable ones.
- Enhance Customer Experience: Implement Velvet Rope Marketing to provide ‘Best’ customers with VIP treatment and use the Profipoly Stack to predict and influence ‘Rest’ customers’ behaviours.
- Refine Acquisition Strategy: For ‘Next’ customers, adopt a near-zero acquisition cost approach. Leverage the Best Customer Genome for better targeting, encourage referrals, and maximise identification of anonymous ‘Guest’ visitors.
- Performance-Based Profit Uplift: Capture a 1250 basis point increase in profit margins by sharing a portion of the gains with martech partners. By doing so, brands can keep a substantial 1000 basis point rise, thereby significantly improving profitability and paving the way for reinvestment in innovation and growth.
When executed with precision, the strategic approach outlined in this series has the potential to fundamentally transform eCommerce brands from their current state of marginal profitability or even loss-making (“profit-less”) to a state of exponential forever profitable growth, a “profipoly” (profits monopoly).
