Guest: Sam Mallikarjunan, Head of Marketing at BirdEye.com

Topic: Increasing Customer Retention and Lifetime Value

In this episode, Sam Mallikarjunan discusses strategies to enhance customer retention and improve the lifetime value of customers. With his extensive background in digital marketing and experience at HubSpot Labs, Sam provides valuable insights into leveraging current customers to drive revenue growth.

Key Takeaways:

• Sam’s Career Journey (00:02:00 – 00:06:00)
  • Transition from AM/FM talk radio show host to digital marketing expert.
  • His innovative approach to getting hired by HubSpot through targeted ads and a personalized website.
• Importance of Customer Retention (00:07:00 – 00:10:00)
  • Example of Starbucks’ focus on lifetime customer value rather than individual transaction value.
  • How investing in customer retention allows companies to spend more on acquiring new customers.
• Calculating Customer Lifetime Value (00:11:00 – 00:14:00)
  • Basic formula: frequency of purchases multiplied by profit margin.
  • Importance of understanding profit margins and adjusting marketing strategies accordingly.
• Strategies for Retaining Customers (00:15:00 – 00:22:00)
  • Humanization of the brand: Example of Delta’s personalized and empathetic customer service via Twitter.
  • Building long-term relationships through personalized interactions and understanding customer needs.
• Utilizing Influencers and Reviews (00:23:00 – 00:30:00)
  • Power of customer reviews and community engagement in driving growth.
  • Importance of leveraging satisfied customers to attract new ones.
• Challenges of Subscription Models (00:31:00 – 00:34:00)
  • Subscription models can be effective but are not the only solution.
  • Importance of offering value and maintaining customer engagement without relying solely on subscriptions.
• Actionable Steps for E-commerce Businesses (00:35:00 – 00:40:00)
  • Focus on product usage and customer satisfaction post-purchase.
  • Collecting and utilizing customer feedback to improve the overall experience.
• Sam’s Fun Fact (00:41:00 – 00:44:00)
  • Sam was once homeless and lived in a pool house while running his campaign to get hired by HubSpot.
  • Importance of humility, self-doubt, and continually reinventing oneself for career growth.

Guest Info and Resources:

Sam Mallikarjunan is the Head of Marketing at BirdEye.com, the world’s leading reputation marketing and customer experience platform. Sam is the former Head of Growth at HubSpot Labs and taught Advanced Digital Marketing at the Harvard Division of Continuing Education. He is also the co-author of the book “How To Sell Better Than Amazon.”

Connect with Sam:

• Website: BirdEye
• Twitter: Sam Mallikarjunan
• LinkedIn: Sam Mallikarjunan

By focusing on building strong relationships with customers, understanding their needs, and leveraging their feedback, e-commerce businesses can significantly enhance customer retention and lifetime value, leading to sustained growth and competitive advantage.