When casting around for ways to increase sales there are really only two options you can take: find new customers or sell more to the existing customers. Of these two the second, sell more to existing customers, is often the easiest and the one with the highest ROI. Today we’ll talk about why you should be focusing more efforts in this area and how you can improve your success rate. [Read more…]
Customer retention takes place as soon as you get a new customer. Ensuring that service is attentive and appropriate and knowing that your sales team can ensure a high rate of renewals is key. This series of blog posts explores both.
We prefer to use the concept of a 3 x 3 ‘Value Map’ to guide our marketing strategy and execution, as we discussed in this previous post on customer value . The concept of ‘captured customer value’ is pretty straightforward for most clients, but the ‘uncaptured value’ can get people to scratching their heads.
So before we move onto the promised discussion of ‘marketing allowable’ for each Value Map cell, I’d like to briefly discuss how to calculate ‘Uncaptured customer value’.
In financial services markets, the example given in the initial post is a good approach. With (typically) contract based products and services, comparing the product holdings (and therefore typical income) of a customer with ‘best customers’ like her, allows you to determine what products she could reasonably buy from you. She either does not have these accounts (for example) or has them with a competitor, but these are uncaptured potential value for you for this customer. [Read more…]
We rarely have to argue with a client when we sagely advise them to ‘align marketing investment with current and potential customer value’. Nobody wants to squander budget on customers that have little interest in what we have to sell or do not have the capability to pay; that only annoys both sides of the customer-supplier relationship.
But it is surprisingly hard to move from this in-principle agreement to actually allocating different marketing spending to different groups of customers on the basis of their known and projected value. So how do you get started? [Read more…]