80% of companies future revenue comes from 20% of their existing customers
Get it right, and you’ve got fans for life.
80% of company's future revenues come from 20% of existing customers. (Gartner) Retain 5% more customers and increase your revenue by up to 95%. (Bain and Company) It costs five times more to acquire a new customer compared to retaining an existing one. (invespcro)
If you continue to invest more time and money in your potential customers compared to your existing ones, you will both lose money and annoy the most important people in your business. Get it right with a Customer segmentation. A crucial analysis for every company that aims to be customer-centric.
+ Understand how your existing customers are divided between Retention, Lapsed, Irregular, Oneoff, and Opportunity pool.
+ Understand what characterizes a Retention (highest value) customer and what is typical of a customer who is less profitable
+ Understand how you can extend the life of customers in the retention pool through targeted efforts for increased loyalty/satisfaction
+ Understand your customer's lifetime value (CLV) and learn how you can increase your customer's total value
+ Understand how you can move customers upwards in terms of value. From a one-off pool to a retention pool
+ Understand which customers are unprofitable and should be removed
Get started with a transactional segmentation
A transactional segmentation is based on all previous interactions your customer has had with your brand. You'll get a map of five segments (or customer pools as we call them) that stretch from your most valuable down to your least valuable customers. This division gives you a great tool to better understand, improve and predict retention.
Deepen your understanding of your customer's pools. For example, what are the behaviors and attitudes that differentiate the most profitable customers from less profitable customers?
Deepen your understanding of how your customers migrate between the five pools. For example, what is required for your lapsed customers to return to the retention pool? How can you better communicate with these?
Deepen your understanding of your new customer's behavior. For example, how can you already during the customer's first year find out if he or she will become a repeat customer or a oneoff?
... and a layer of loyalty
Based on the outcome of the transactional segmentation we create priorities within each segment by grading each individual's loyalty.
By rating each customer in three types of loyalty, we create a loyalty profile for each and every one of your customers. Based on this profile, we can divide each segment into 4 priority levels (5 levels for oneoff).
A feedback loop keep you on track
After the initial analysis, we create a feedback loop that allows you to always have an accurate view of your customers.