cpSTRAT: Customer Profitability Strategy

If you do not know where you are going, any road will get you there.

The critical success factor? The selection of practical strategies that can be implemented and delivered quickly for revenue improvement, but will also be the building blocks for long-term sustainability.

Unfortunately for many businesses, their efforts to figure out "best practice" goals often don't translate into customer-driven strategies that will bring long term results. Without the ability to act upon customer data appropriately, misdirected operational efforts fail. This is why you need a practical strategy, delivered to the right customers.

Description

At the customer level: customer value is driven by just two key variables: customer revenue and cost. Revenue in turn is linked to just two key variables: sales per customer and customer retention. The key deliverable of cpSTRAT is the identification of a set of customer strategies that will capture incremental customer value by:

• Driving down cost per customer
• Driving up sales per customer 
• Driving up customer retention

There are a great many potential customer strategies that an organisation can undertake to deliver these outcomes;

• Cross-sell,
• Up-sell,
• Product bundling,
• Touch point cost management,
• Customer loyalty programs,
• Service quality management, etc.

Identifying which set of strategies match your business capability, while also being appropriate for each customer's individual current and potential value profile is the challenge.

Genroe works with you, using our cpSTRAT process, to select the mix of customer strategies that will achieve your business goals. The cpSTRAT process explicitly incorporates a series of key traits to arrive at an optimal customer strategy solution:

• Alignment with the strategic business goals for the organisation
• Alignment with customer value: current and potential
• Organisational acceptability in terms of return on investment and corporate mission
• Feasibility that it can be delivered with the resources and constraints of the organisation

Benefits

The cpSTRAT process ensures that your organisation devotes resources to the optimal set of customer strategies. The benefits of the cpSTRAT process include:

• Optimisation of the ROI for each strategy based on each customer sector
• Focusing on the right strategies increases the opportunity for successful outcomes
• Explicit alignment of your organisation's resources with the prioritised set of strategies 
• Implementation of practical strategies, targeted at the right customers

"We brought [Genroe] into a business project that was not delivering as expected with stakeholders from individual lines of business dissatisfied with key project deliverables. I cannot speak highly enough of [Genroe's] expertise in customer retention as [they] managed to assess, conceptualise and document our strategic plan simply and also effectively brought all key stakeholders together to deliver it for our business!"

Kellie Shewring (Head of Customer Retention, Bankwest)