UK brands struggle to manage Customer Lifetime Value due to lack of marketing coherency and poorly managed systems

British brands are unable to measure and manage customer lifetime value (CLV), despite more than three quarters (76%) recognising it as a core requirement in building customer loyalty and sustainable lifetime value, according to new research by Sitecore.

The ‘‘Customer Lifetime Value (CLV): Building Loyalty and Driving Revenue in the Digital Age’’ report reveals that the concept of CLV is alive and kicking among most brands, but just over one in ten (11%) ‘strongly agree’ that they can accurately measure it.

The survey of 500 brand and agency marketers from across 11 vertical sectors, reveals that more than a third (35%) believe their organisations are too siloed and lack coherent marketing, while 34% feel that poor systems or lack of integration is hindering the customer experience they provide.

Encouragingly, delivering a more cohesive, connected and improved customer experience is now high on the planning agenda. Almost two thirds (64%) of brands and 58% of agency respondents highlight this as a priority, making it the most important strategy for increasing CLV in the future.

Brands pinpointed a single customer view as the most effective tool for enhancing CLV, followed by customer experience management solutions (28%), dedicated retention staff (27%) and more interaction between online and offline channels (27%).

In terms of tactics and strategy, personalisation is earmarked as an important factor with just over a third (34%) of respondents siting this as a top-three method for boosting CLV. Exactly half (50%) of the sample recognised that making better use of digital as a top priority in achieving this.

Shawn Cabral, marketing director for Sitecore UK, comments: “The research reveals that brands recognise the importance of delivering a great customer experience, but they must re-define the meaning of customer experience, to embrace every interaction with their brand. To provide this holistic experience, it is not just about technology, but also being able to be ‘multichannel’ within an organisation. All departments company-wide must ensure that they use their data and customer insight to collect, connect and predict – so they deliver an exceptional customer experience.”

Linus Gregoriadis, Econsultancy research director, comments: “Enhanced customer lifetime value is dependent on the integration of activities that straddle the digital and physical worlds. This requires the kind of joined-up approach within organisations that is often difficult to achieve.”

To download a free copy of this report, please click here.

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Media Contacts

Tom Briffitt, Threepipe

Sitecorepr@threepipe.co.uk

0207 632 4800

About the research

There were almost 900 respondents to the research request, which took the form of an online survey in October and November 2013.

Respondents included both client-side (in-house) organisations and agencies, vendors or consultancies (supply-side).

Information about the survey, including the link, was emailed to Econsultancy’s user base and promoted online via Twitter and other channels. The incentive for taking part was access to a free copy of this report just before its publication.

About Sitecore

Sitecore is the global leader in customer experience management software. The company delivers highly relevant content and personalised digital experiences that delight audiences, build loyalty and drive revenue.

With Sitecore’s experience platform, marketers can own the experience of every customer that engages with their brand, across every channel. More than 3,500 of the world’s leading brands – including American Express, Carnival Cruise Lines, easyJet and Heineken – trust Sitecore to help them deliver the meaningful interactions that win customers for life.

For more information about Sitecore, visit www.sitecore.net

About Econsultancy

Econsultancy’s mission is to help its customers achieve excellence in digital business, marketing and ecommerce through research, training and events. Founded in 1999, Econsultancy offices in New York, London and Singapore.

Our blog is read by over 500,000 professionals around the globe each month, with 250,000 subscribers having additional access to research, market data, best practice guides, case studies and elearning – all focused on helping individuals and enterprises get better at digital.

For more information, visit www.econsultancy.com