Jim answers questions from fellow Drillers
Topic Overview
Hi again folks, Jim Novo here.
If you’re not really clear on what you’re trying to accomplish, designing a successful customer retention program can be a bit of a struggle. Hey, maybe you just don’t know what to look for / what needs fixing / where to start? Gotcha, fellow Driller, the current value / potential value matrix is a great place to start – for you, and perhaps more importantly, your boss / the CFO. Ready to try on some focus? Let’s get to the Drillin’ …
Q: I am totally getting into your book. I am up through chapter 17 and have completed my RF Scoring. My company [my day job] is a custom software company. It was difficult for me to get my head around the units thing yet, so I just used the “M” as you put it.
A: Thanks for the kind words, I’m glad it’s working for you!
Q: In term of companies, we are probably like the B2B example you used in Chapter 8. So, I could not get my head around the units deal yet because I have not studied the data enough to see if there is a progression. I think I would need to look at it year to year; but should I stop now and do it first?
A: Well, customer analysis always starts with an objective…what are you trying to look at / prove / do? It’s hard to comment without knowing the business problem or issue you are facing…and without any information on how your business really works. I can rarely find that out from looking at a web site…
“Units” would probably be the total number of “jobs” you have completed for a client. It also could be the total number of hours the client has used, if that is more logical for the business. It’s hard to tell without a bit more information. The point of the “units” variable is to look at the Frequency of commitment, so use whatever makes sense for the business.
Q: So, my question is, should I go back and do what you suggest in chapter 9 – setting up a look at Latency by customer to get the progression before I continue with Chapter 18.
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