Customer Retention and Win-back
Whether we’re selling goods or services, selling in B-to-B or B-to-C markets, most companies like
to think that everyone they have ever sold to is still a customer. In reality, this is just one
view of a two-way relationship.
We have to consider the customer’s point of view as well. Does the customer still consider our
company as their preferred supplier? In practice, their loyalty depends largely on their most
recent experience of our company. How can we find out whether we have won their loyalty? Customer
satisfaction surveys will provide some answers, but the ultimate proof is whether the customer
continues to buy from us.
What is the probability that they will buy from us again? How can we be sure they’re not going
to buy - or haven’t already bought - from another supplier? There are proven techniques for
finding out which customers are likely to buy again and which ones are at risk of going to another
supplier.
Recency / Frequency analysis is one of the most reliable techniques. Experienced direct marketers
know that customers who have bought recently and / or frequently are far more likely to to buy
again from the same supplier than those who have not.
The Recency and Frequency of a customers purchases can be expressed as ranking index. The ranking
allows you to compare customers. You can clearly see which are your most valuable customers and
which are of marginal value.
More importantly, you can use the Recency / Frequency ranking to show the customer life cycle - how
the relationship with each customer evolves over time. Some customers will aways be small customers;
some will grow to become major accounts. A few will become key accounts.
Customer lifecycle patterns are highly specific to each industry, company and group of products.
Once you know what the typical customer lifecycle patterns for your company, you can take a
strategic approach to crucial issues. You can design eMarketing campaigns to maximise the
duration, volume and value of the relationship. For specific customer groups. For specific product
groups.
When a relationship is at risk sales become erratic. The average order falls by volume and value;
the time cycle between purchases becomes longer. The Recency / Frequency analysis enables you to
identify customer relationships that are at risk and take action.
eMarketing to optimise customer retention
Once the Recency / Frequency analysis has identified the target groups, you can prepare eMarketing
campaigns to address specific business goals.
• Loyalty programmes aim to keep customers satisfied and minimise defection
• Retention programmes that target customers as soon as there is a clear indication
that defection is possible
• If defection occurs, win-back programmes will identify whether there is an opportunity
to re-establish a mutually beneficial business relationship.
eMarketing gives you a fast and effective way to take action.
When did you last contact your customer? Are the same contacts still in the same
decision-making roles? eMarketing also provides you with a low-cost method for nurturing the
relationship in between buying cycles. You can keep in touch with your customer contacts on a
regular basis. Newsletters allow you to identify their interests and supply them with the
information they need. Acquiring new customers takes so much resource, that it’s well worth the
effort keeping the existing ones happy.
Retention and Win-back Seminar
Whether you’re company is new to eMarketing or already has experience, the Ansaco eMarketing
Retention and Win-back Seminar is an excellent way to get your plans off on the right foot.
Together, we’ll review the Recency / Frequency patterns of your customers and establish the
typical lifecycle patterns of key customer groups. We’ll identify campaigns for specific products
and services, identify offers and the relevant target groups, establish the criteria that the
sales team needs for effective qualification, and set up Retention and Win-back calendar for the
next quarter.
The Agenda for the one-day seminar typically comprises:
• Standard presentations = 10%
• Company-specific issues = 90%
Ansaco can also execute and measure the impact of Retention and Win-back campaigns to your
existing customers. We can design eMarketing campaigns that are designed to maximise customer
loyalty and customer retention. We will include automatic processes for passing qualified leads
on to the appropriate member of your sales team, too. We will also create the reports that enable
you to accurately measure the financial impact of your Retention and Win-back campaigns.
For further details, please email
emarketer@ansaco.de
or phone us on: +49 (0)6221 6568 475.
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Customers
Organisations that we have supported with our eMarketing experience and insights include:
Deutsche Investment Trust, Dun & Bradstreet Germany, Field Fisher Waterhouse, Miltenyi Biotech, Pivotal Corporation, SAP AG.
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