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Why Tying Communications to Business Outcomes is Your Key to Success


“Communications” used to be the department many viewed as a cost center, more decorative than meaningful to the bottom line. The place you turned to when you needed a press release or someone to manage a PR problem.

 

Not anymore. Effective communications are no longer "nice-to-have" — they are a vital business function that directly impacts your bottom line, whether increasing sales, enhancing customer retention, or expanding market share.

 

Business success doesn’t come just from providing great products and services. It comes from how you communicate their value and how you make people feel connected to what you’re offering.

 

But, like any other business expense, your communications efforts should be tied to measurable business outcomes so you can justify marketing budgets, make smarter decisions, and stay competitive in the market.

 

So, how can you effectively link communications metrics to business outcomes? Here are some examples:

 


Great Communication Drives Sales!

 

Remember when people thought content marketing was a waste of time? Now it’s the workhorse of any good sales funnel. You might have the best product in the world, but if you don’t make people see how it benefits their lives, you won’t sell a thing.

 

Content marketing attracts, engages, and nurtures potential customers at every stage of their buying journey by giving them valuable, relevant content in forms like blog posts, videos, and case studies. At the top of the funnel, content generates awareness and leads. As prospects move down the funnel, content like product comparisons can help them convert into paying customers and post purchase engagement like loyalty programs can turn them into promoters.

 

Are your customers seeing the real value of your product, or are you leaving it to chance? What could happen if you gave them the content they needed to fully understand how your product impacts their lives?

 

Engaged customers stay longer and spend more.

 

And everything can be measured. From tracking the number of leads generated through content, to how many of those leads convert into customers, to the long-term value of customers who first engaged with your content.

 

 

Customer Retention Is More Powerful (And More Achievable) Than You May Think.

 

Acquiring a new customer costs five times more than retaining the one you already have. Every time a customer leaves, it’s not just a lost sale—it’s a lost relationship. By improving retention by just 5%, you’re not only saving costs but also strengthening the emotional connection that keeps your customers coming back, which can boost your profits by up to 95%.

 

So, the smartest move is obviously to keep the customers you’ve got happy and engaged. How do you do that? By communicating with personalized, targeted messages.

 

When Telus launched its Customer First program, it focused on improving customer retention through clear and frequent communication and creating personalized experiences for their existing customers.

 

They were proactive. They reached out to customers before issues arose and reduced dissatisfaction and churn by offering tailored solutions before customers considered switching to a competitor. They personalized billing information and offered tailored promotions to keep customers satisfied.

 

As a result, for several consecutive years, Telus had one of the lowest churn rates in the industry, the highest Net Promoter Score (NPS) among major Canadian telecom companies, and a 5% increase in its operating revenue with Telus attributing much of this growth to their “strong and enhanced customer loyalty​”.

 

But improving customer retention isn’t the only way effective communication can drive growth. Let’s look at how thought leadership can expand market share.

 


Gaining Market Share Through Thought Leadership

 

To increase your market share, start positioning yourself as the leader.

 

When companies consistently provide insights and expertise through content like blogs, videos, events or public speaking, they position themselves as leaders in their field. People like experts so this content attracts the attention of potential customers.

 

A great example of a thought leadership strategy fueling growth is Lululemon, who wanted to be known as more than just an apparel brand. They wanted to be leaders in the wellness space.

 

As part of the “Power of Three” growth strategy, they emphasized holistic wellbeing, mindfulness, and community-driven initiatives, through in-store events, brand ambassador programs, and educational content on wellness.

 

Lululemon CEO Calvin McDonald has publicly credited their thought leadership strategy for contributing to its growth (revenues increased from $3.3 billion in 2018 to $6.25 billion in 2021) especially in areas like product innovation and community engagement.

 


Personalized Communication Enhances Brand Loyalty and Customer Lifetime Value

 

Making your customers feel seen and appreciated builds loyalty. And loyalty leads to higher customer lifetime value.

 

But this devotion isn’t built overnight. It’s the result of consistent and meaningful communication that keeps customers engaged and coming back.

 

In 2018, Canadian Tire launched the Triangle Rewards program, which personalized offers and rewards based on a customers’ shopping habits. Using customer data from in-store and online purchases, they delivered customized promotions, exclusive discounts, and tailored communications via email, mobile app notifications, and even direct mail.

 

Frequent customers of automotive products would get targeted offers for car accessories, while regular sports customers might see personalized deals on athletic gear.

 

These communications provided not only personalized offers but also reminders about points balances, rewards expirations, or special events to drive further engagement.

 

The communication strategy had a clear result. The program reached over 11 million members within two years, personalized communications contributed to a 20% increase in active engagement with the loyalty program​, and their customers who received customized offers, spent 20-30% more than non-members.

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The Bottom Line

Effective communications strategies can directly impact your profitability and should be a core part of your business strategy, not an afterthought. It is a proven engine for growth which can and should be linked to real, measurable business results.

 

Every message, every campaign, every interaction should move the needle to:

1.      Generate measurable sales through targeted campaigns.

  1. Retain customers and reduce churn by leveraging personalized messaging.

  2. Expand market share by positioning the brand as an industry leader.

  3. Enhance customer lifetime value with data-driven personalization.

 

Start investing in your communications today. Align every message with measurable outcomes and watch as your business skyrockets. The time to act is now.

 

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