Grow Your Customers
Depending on the industry, several methods for increasing customer value exist. Here is an example of increasing customer value through spend and frequency analytics. Match customer segments to the right spend program.
In order to identify and understand the needs of customers, the first step is to segment the customer base according to frequency of spend and value of spend. This is illustrated in the figure below.
Segments are then assigned differentiated customer service levels. For example, the high spend and high/medium frequency segments are granted access to a premium customer hotline, while low spend and low frequency segments a served through a lean service backbone.
To understand segment needs and preferences, a deeper analysis of customer transaction histories and qualitative attributes is carried out across segments. The knowledge from here is used to design a small set of experimental product offerings and marketing messages with the potential of engaging the customer further. Finally, messages and offerings are tested empirically. A new cycle can begin.
Are you currently matching the right customer to the right service level? Innohead can help you grow your customers through actionable CRM analytics.