cpMap
Understand your customers by behaviour, current and potential value
Sales organizations and marketers spend countless hours analyzing data to learn more about their customer base. While market research can help you to better understand customer's buying habits and the breakdown market segments, some of the most valuable information may be missing from these reports.
Each customer is unique, with their own triggers and "sweet spots" that drive purchasing decisions. Retaining your customers and keeping them loyal requires a deeper understanding of their individual characteristics and potential value to your company so you can focus your marketing investment on the customers of greatest opportunity.
According to a recent survey, 85% of publicly listed companies do not have a clear view of their individual customer's "value". Despite the fact that all of these companies employ in-house marketing analysts, and some external resources, they are unable to see the constant "ebb and flow" of customer value moving in, out or through the customer base. Even worse, 90% of the organizations surveyed said they cannot determine the potential value of each individual customer's "share of wallet", compared to the customer base as a whole.
In most cases, organizations rely on customer metrics that are based on averages, or face value numbers, for making business decisions. However, this information can be misleading. Using a "customer value" perspective paints a very different picture; one that is effective in driving profitability.
Description
How do you leverage your customer's "sweet spots" in order to drive improved profitability? Well, first you will need to determine where they are.
Using the Customer Value Map framework, you plot all customers on a nine-sector algorithmic map. Not only does this clarify their specific behavioral characteristics, it allows you to see "Current Value" versus "Uncaptured Value", as defined by the financial metrics most relevant to you. For example, as an insurance company you may use "COR" or "Written Gross Premium", if you are a telco you may prefer to use EBITDA or ARPU metrics.
Benefits
Using Genroe's cpMAP will help you...
- Better understand your customers - from an individual customer-level perspective to a total customer base view.
- Move away from reporting on "averages", which disguise intrinsic customer value, and understand your clients from a customer-specific viewpoint.
- Quickly identify the current value of your customer base and determine the potential customer value you may be missing
- Monitor customers as they migrate across value sectors to see how this churning process increases or decreases overall customer value
- Assess the areas where the best return-on-investment can be found, by targeting customers with the right current vs. potential value.