Agile Client Development
In this blog article, we discuss how digital marketing agencies can analyse, measure and push their own client development.
What you will learn from this article:
- Understanding of your current customer lifetime value
- How to setup scrum roles within your client development
- How to conduct agile retrospectives with clients
To explain the most important points in detail, we divided the content into the following points:
- Definition of customer lifetime value
- Scrum roles in client development
- Agile retrospectives with clients
1. Definition of “Customer Lifetime Value”
In easy words, the Customer Lifetime Value (CLTV) can be defined as the value a customer generates during their time as customer of a company.
To calculate the CLTV of your agency, you can use the following formula:
Our Tip: To make it easier for you at the beginning, you can use estimates to get a first idea of your numbers and standing.
In action, it could look like this:
The formula clearly shows that your client development potential is linked to your agency’s customer lifetime value. If you want to push the numbers / KPIs of your agency, we recommend you the following actions:
2. Roles in Client Development
We propose a scrum process for digital marketing agencies to develop larger accounts. If you want to know more about how a scrum process looks like or how it works, please read our blog article from February 2020.
In order to achieve an agile client development, you should keep the following 4 points in mind:
Summary of Roles in Client Development:
- It is important to think of all the roles and responsibilities in the client development sprint
- Differentiate between clients that can be developed and clients that can not be developed
- Define communication levels according to development potential of your clients
- Assign roles and templates that are used within each client development meeting
3. Agile retrospectives with clients
We propose five steps to develop a strategic roadmap with your clients:
1. Marketing Strategy & Customer Journey:
a) Discuss with your clients how they want to develop their market in 2021
b) Define an individual customer journey with your clients to understand the interdependencies of marketing & sales. Furthermore, define the re-purchasing cycle of your clients and derive the logic of retention vs. lifespan
c) Analyse your clients’ current customer base and derive their Recency, Frequency & Monetary Model (RFM)
2. Value Case & Strategic Roadmap:
a) Define a value case on basis of your clients’ individual needs
b) Define objectives with real numbers to reach the value case
c) Calculate business targets to reach
3. Media Mix:
a) Align on how to allocate the required budget among different media channels
b) Attribute your budgets according to your marketing channels
c) Define the See-Think-Do-Care funnel with your clients in a service map
4. Seasonal Campaigns:
a) Define the seasonal campaigns with your clients to push sales & increase basket value
b) Define your audience targeting for each of the campaigns and also the format video, display, text or audio
c) Discuss how a technology stack can be built that allows sequencing and optimisation of first party data
5. Operational KPIs:
Align on your operational KPIs to measure to see how to increase their performance
If you want to get to know more, visit our blog.
Your Amaze Growth Team
