- Someone who makes repeat/regular purchases
- Someone who purchases across product/service lines/categories
- Someone who refers others
- Demonstrates immunity from going to competition.
Calculate:
- R: Recency
- F : Frequency
- M: Monetary Value
And then Customer Life Time Value (LTV)
Value Pyramid of Customers/ Where is the opportunity to create loyal customers?
- Know your best customers: Who buys high order value? Who is a repeat buyer?
- What is the expected value in your segment?
- What is it about your service and product right now that makes the customer buy?
- Where does top percentage of your revenue come from? (Ticket size, geo, category, sub-cat, brand)
- What are they buying, When are they buying, How are they buying?
- When looking at top buyers - do look into returns and other data silos.
- Has the value of purchase/order value grown over the time?
- A) What are their unsolved problems? B) What are their headaches? C) What keeps them up at night?
- Make it easy for them to try or buy your new products and services.
- Are you doing Birthday/New Year promotions card? Do you use this opportunity to force feedback?
- "What is one thing we could have done better?"
- Seek out employee feedback. Make sure you empower employees.
- Communicate the vision of promotion to the front line.
Create such a visualisation:
Total Revenue 80% of Revenue
XXXX 0.8R
CUST ID REVENUE 80% REVENUE
1
2
3
4
5
6
7
8 R 0.8R
