If I only had to pick 3?
14 Aug 2015
To help you here's what I think:-
1. How long have customers had a relationship with my business?
2. How much are my customer worth now ( in £££) to my business?
3. How old are my customers?
I know you will immediately disagree with this and quite rightly. I’ve totally ignored channel of preference, number of service calls, segmentation, complaints, x-product holding, prospect queries, web/mobile/app usage etc…..but I could only pick 3.
My reasons are:-
1. Measures loyalty, retention, brand affiliation, advocacy and stickiness
2. Measures profitability, margins, cost of service, value, net worth
3. Measures type of customer, market you play in, opportunism for new products
So let’s see what you lot think?
Hi John - how are you? Long time!
I agree John - I think it comes down to Recency, Frequency and Value...so totally agree with point 1 and 2. That being said, Frequency and value could be wraped into your point 2. Point 3, their age however, wouldn't be on my top 3 (perhaps top 5?). Number three depends so much on your product, service and comms strategy......so I would almost be included to say that "propensity" would be my third - as this would cover age, segmentation and channel to some extent.
Whyh? Say for instance Tesco's Financial products - home insurance perhaps.....is age a major factor or is propensity? (e.g. when their renewal is due, tenure of property, other banking relationships - and indeed other shopping relationships may have a greater impact than age? Presumably a renewal where the customer is a Tesco clubcard member and lives in a radius of a store is more likely to buy?
Triggers would also be on my list under propsensity - is someone more likely to require a credit card in the 6 months post move? Are they moving into a Tesco drivetime, will they take a clubcard and FS products. Also certain products around building a new home, having a baby, retiring....oh - I'm getting back to.......age. You win
Golley Slater Results Marketing
Managing Director