Our news and views relating to Data Analytics, Big Data, Machine Learning, and the world of Credit.
The right customers are important for every business. Marketing to and serving customers who are not profitable removes your focus from your best customers and ensuring they remain loyal to your business. (Click to Tweet!) Scorecards can help you identify and focus on your ideal customers by ranking your customers by the common criteria historically shown to be shared by your best customers.
According to Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, the probability of selling to a new prospect is 5 to 20%, while the likelihood of selling to an existing customer is 60 to 70%. Your customer growth strategy is an easy way to grow your bottom line and improve your revenue.
According to this article by Frederick F. Reichheld in the Harvard Business Review, the average company loses about half its customers in a five-year period. When customers see a loss of value, they churn. The ultimate goal of a great loyalty strategy is to increase the perception of your solution’s value in the eyes of your customer, exactly when you need to. To achieve that, you need to be able to predict churn, many in the industry turn to leading (or lagging) indicators to indicate where efforts need to be focused.
An average customer’s attention span is less than that of a goldfish, according to the National Center for Biotechnology Information. While a goldfish can focus its attention for 9 seconds, in 2015 customers were found to lose interest after only 8, down from 12 seconds in 2000. (Click to Tweet!) The reduced attention span, makes the initial impression all the more critical, especially in a call centre environment.
As the pressure of intensifying competition mounts every day, companies must look to boost customer loyalty, considering that it costs five times as much to onboard a customer than it is to retain one. And with consumer influence now stronger than ever, businesses that fail to respond to their customers’ needs will feel the impact on their sales figures. A recent study by Bain & Company revealed a 10% increase in customer retention levels results in a 30% increase in the value of a company, and a 5% increase in customer retention rates increases profits by between 25 and 95%.