Jul
22
2014

Lowering B2B customer acquisition costs by identifying business owners in your existing consumer customer base

Identify Business Owners in Your Consumer Porfolio

In the 16th century there was a proverb related to medieval falconry. It went “A bird in the hand is worth more than two in the bush.” The proverb evolved over hundreds of years into “A bird in the hand is worth two in the bush.” The bird in the hand, a Falcon, is worth much more than two loose birds in the bush. When you think about this proverb and how it relates to modern times, particularly in B2B marketing and customer acquisition, aren’t your existing customers, patrons who are already doing business with you, worth more than “two prospects in the bush?”

Many companies often overlook their existing customers for new business opportunities, particularly those who may be using products from another part of their business. That’s a mistake because according to a recent study* the probability of selling to an existing customer is 60-70% while the probability of selling a new prospect is only 5-20%. Are you overlooking lower hanging fruit in optimizing your existing base for business? According to a recent Bain and Company study, a 5% increase in customer retention can increase a company’s profitability by 75%.

If you are a large airline for example, you may want to expand your existing relationship with those consumers who fly on your planes to vacation destinations by offering them an invitation to your business class frequent flyer program. If you knew that a cross-section of your customer base were business owners and entrepreneurs you might consider offering bonus miles as an introduction to commercial offers, further personalizing their experience with your brand to address their business needs. If you are a large wholesale club you might also like to establish relationships with restaurant owners or business caterers, people who do their grocery shopping on the weekend in your club, but own commercial businesses requiring produce, office supplies or general merchandise.

Today Experian Business Information Services unveiled Entity Linkage Service, a new business marketing service to help companies uncover qualified commercial accounts by identifying business owners and company decision makers within their current consumer customer base.

Laura DeSoto

Laura DeSoto, SVP Strategic Initiatives

“In today’s competitive business environment, many companies are exploring alternative ways to increase revenue while still keeping marketing costs at a minimum,” said Laura DeSoto, senior vice president for Experian Business Information Services. “We’ve created Entity Linkage Service to help companies uncover new business contacts, while reducing customer acquisition costs. Given that these new contacts are also existing consumer relationships, companies will increase the probability of successful contact, improve customer lifetime value and more easily identify potential cross-sell and up-sell business opportunities.”

How does Entity Linkage Service Work?

Through a highly accurate proprietary linkage system, Entity Linkage Service cross-references a company’s consumer customer database with commercial and marketing repositories to provide as many as up to 10 active businesses associated with each consumer contact. With information on over 25 million actively transacting businesses, Experian’s business database and architecture enables our clients to maximize the full potential of their current relationships, improve customer retention and segmentation, and optimize marketing spend.

In the below video, Product Marketing Director Adelain Sin describes how Entity Linkage Service can benefit companies with consumer and commercial offerings.

 

Learn more about Entity Linkage Service

Click here to visit the product page or view our pain point session, which goes in depth on how businesses can tap into the power of their existing consumer portfolio.

*Bane & Company – In a downturn, manage for the upturn, Crawford Gillies & Patrick Manning

share this blog with a friend