> First Nine Chapters of Drilling Down Book (PDF)
> Lifetime Value, I’d Like to Introduce You to the CFO (whitepaper)
> Case Study: Cellular Loyalty Program Generates 252% ROI
DRILLING DOWN BOOK OVERVIEW
The first 9 Chapters are described below:
Chapter 1 Jonesin’ for Some ROI
Chapter 2 Customer Profile or Customer Model?
Chapter 3 Data-Driven Marketing and Service Drivers
Chapter 4 Customer Marketing Basics
Chapter 5 Customer Marketing Strategy: The Friction Model
These five chapters provide a basic introduction to the idea of customer modeling. Customer profiles and models are compared (they are not the same, but can work together!), and the fundamental ideas behind predicting customer behavior and customer value management are explained. These chapters lay the foundation for your three simple customer model toolkits. Each toolkit has an explanation of how and why the model works, provides examples, and then shows you step by step how to use the model to increase your profits. Includes the strategic Friction Model for mapping current and potential customer value and tracking the results of customer value management programs.
Latency Metric Toolkit
Chapter 6 Trip Wire Marketing
Chapter 7 The Hair Salon Example
Chapter 8 The B2B Software Example
Chapter 9 Turning Latency Data into Profits
Latency is the very simplest customer behavior model there is, and is very intuitive. If you know who some of your best customers are and have thought to yourself, “Gee, it has been a while since best customer X has been in” you are thinking about Latency. Your thought process is correct; but you have no method for determining when “been a while” means “they are not coming back,” and you have no specific action plan to turn your thoughts into increased profits. The Latency toolkit shows you how to measure Latency and set up “trip wires” that will tell you how to increase the profitability of your marketing.
Latency is often the preferred model to use in service-oriented businesses where there is a monthly billing arrangement or other “built-in reason” for repeat activity such as with utilities, insurance, telecommunications, and personal services such as hair salons.
Lifetime Value, I’d Like to Introduce You to the CFO (whitepaper)
Why does CRM “fail” so often? I believe at the core of this question is a conflict between value measurement systems – the periodic accounting system used to drive almost everything a company does, and the customer accounting system, the basis of LifeTime Value. How can a CFO (or CEO, for that matter) believe in the ROI of CRM if they can’t “see” LTV flow into the monthly, quarterly, and annual financial statements? No wonder they see “no ROI.”
These two accounting systems can be reconciled, and only the companies taking steps to do this reconciliation will ever truly prove CRM is a profitable approach to managing a business.
Fortunately, it’s not a big deal to do this, from a resource perspective. But it does take a little new thinking: embracing relative rather than absolute customer value as a yardstick, and tracking changes in potential value to look for where things are going wrong – or right – with a customer value management discipline.
The whitepaper is now available as HTML pages here.
Case Study: Cellular Loyalty Program Generates 252% ROI
Consumer cellular is one of the toughest proving grounds out there for a loyalty program, but this highly innovative loyalty program decreased the churn rate over 15% in just two years while driving best customer spending though the roof.
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Download Case Study PDF – 77 kb
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