The following is from the October 2009 Drilling Down Newsletter. Got a question about Customer Measurement, Management, Valuation, Retention, Loyalty, Defection? Just ask your question. Also, feel free to leave a comment and I’ll reply.
Q: I have recently purchased your book Drilling Down and going through the many interesting concepts.
A: Thanks for that!
Q: I work for a membership Organization and we would like to conduct some analysis into who we may lose and approach them even before their membership lapses. But the only problem here is that we carry data only on the purchases made (though many of our members do not purchase our products and stay a member) and web site visits.
A: Are you *sure* that’s all the data you collect? I once worked with a professional membership org that thought they only had one data source, but turns out they had 8 – from 8 different areas of the org – that nobody really knew about.
Q: How do I know if a particular member is going to resign and lapse soon with this limited amount of behavioral data. Recently it’s been a concern that we are losing members who have been with us for more than 10 years and who are in their mid career profession (aged between 30 to 45) and indicated no specific reason for resignation.
This has been going on for the last few months and now we would like to strategically target these customers and approach them even before they react negative. What concepts could help me to do this? Your guidance would be much appreciated.
A: OK, my answer will be in two sections: if you (hopefully) find you have more data than you think, and if you really don’t have any other data to fall back on.