Shifting from acquisition to retention transfers the goals to a focus on establishing loyalty, advancing the relationship and building a sense of community, participation and affinity. The retention data strategy, as with prospecting, also must be built on determining which customers meet that "ideal" criteria.
Even minimal improvements in retention rates can lead to big improvements in profitability and overall ROI. With this in mind, look for factors that will feed back into the acquisition cycle to trim marketing costs and/or increase success rates. Analyze the trends in the length of customer relationships to help determine if something can be done to avert customer losses at critical points along the way.
All organizations that regularly update customer data should review and analyze it to pinpoint opportunities to up-sell, cross-sell and service sales. For example, sales data can reveal which customers are due for product/service upgrades or warranty extensions.
To guide development of a retention data strategy, answer the following:
* What are the characteristics of the best customers?
* What keeps them loyal?
* What's the potential for developing similarly loyal customers?
* What are the information and service needs of established customers compared to those of prospects?
* What prospect information, if any, needs to be saved once a relationship is established?
* Are there changes the organization should make as the relationship evolves?
* Why were products returned?
* How many service calls did customers place and why?
* How were service calls resolved and how long did it take?
* Why does one set of customers respond to opportunities when another doesn't?
Even minimal improvements in retention rates can lead to big improvements in profitability and overall ROI. With this in mind, look for factors that will feed back into the acquisition cycle to trim marketing costs and/or increase success rates. Analyze the trends in the length of customer relationships to help determine if something can be done to avert customer losses at critical points along the way.
All organizations that regularly update customer data should review and analyze it to pinpoint opportunities to up-sell, cross-sell and service sales. For example, sales data can reveal which customers are due for product/service upgrades or warranty extensions.
To guide development of a retention data strategy, answer the following:
* What are the characteristics of the best customers?
* What keeps them loyal?
* What's the potential for developing similarly loyal customers?
* What are the information and service needs of established customers compared to those of prospects?
* What prospect information, if any, needs to be saved once a relationship is established?
* Are there changes the organization should make as the relationship evolves?
* Why were products returned?
* How many service calls did customers place and why?
* How were service calls resolved and how long did it take?
* Why does one set of customers respond to opportunities when another doesn't?
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