Most companies will use RFM (Recency , Frequency and Monetary Value) to determine who their best customer are. Using Information such as how much a customer has spent, how frequently they spend and when was the last time they bought your product/service will allow you to determine which customers are most likely to buy and which customers are likely to lapse. By analysing this information you could identify the top X% and the bottom X% of your customer base and profile them together to find similarities. In B2B you may notice that your top customers fall within a certain business sector, have a large number of employees or that a certain contact bought your product (e.g. IT Managers). In the consumer world you may notice a difference in the demographics or lifestyle of your customers. By analysing this information you can usually identify ways to increase the spend of your lowest value prospects and / or identify why other customers are more valuable than others. (maybe they are managed by a particular account manager etc) When looking at the profile of your top customers you can usually identify similarities (e.g. age, gender, business type, employee numbers etc) this will allow you to build a more targeted prospecting base for future campaigns.
Blue Tahiti provide online applications that allow marketers to analyse their customer data online by profiling, segmenting and analysing your customer, contacts and transactional data. Visit www.bluetahiti.com for more information or call 08456 383 277
We use two tools; an Ideal Customer Profile and "3 questions". The Ideal Customer Profile is a rating system that compares your companies unique or valued offerings with the customer's current and future needs. Your are looking to se how closely correlated your offerings are with your customers needs. The stronger the correlation, the better chance we have of winning.retaining that customer and creating a mutually beneficial relationship; basically their needs hit our sweet spot. Our Ideal Customer Profile looks at 5 categories (needs for our services, total possible volume, supplier involvement, collaborative culture and profitability). This helps rank our customers are focuses us in on where we need to work on our relationships.
The "3 questions" we always ask are 1) Do I like the people at the company? Could I go out and have a beer with them and enjoy myself? 2) Do I trust the company? 3) Can we both make money working together? If we can't definitely answer yes to all three questions, we know we are setting ourselves up for issues down the road.
I think it's important to first understand what it is you want to know about your customers. Quantitative information is easier to gather (sales, profitability, longevity, etc.) but the qualitative (loyalty, perceptions of products and service, etc.) requires more commitment and work. However, the qualitative can be far more revealing and affords your company the opportuntity to be in front of your customers in a very intentional way. One-on-one interviews are a tremendous source of customer intelligence.
My firm, CI Consulting, helps clients gain customer insights and then leverage that intelligence to drive strategy, growth and innovation.
3 Answers
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Most companies will use RFM (Recency , Frequency and Monetary Value) to determine who their best customer are. Using Information such as how much a customer has spent, how frequently they spend and when was the last time they bought your product/service will allow you to determine which customers are most likely to buy and which customers are likely to lapse.
By analysing this information you could identify the top X% and the bottom X% of your customer base and profile them together to find similarities.
In B2B you may notice that your top customers fall within a certain business sector, have a large number of employees or that a certain contact bought your product (e.g. IT Managers). In the consumer world you may notice a difference in the demographics or lifestyle of your customers.
By analysing this information you can usually identify ways to increase the spend of your lowest value prospects and / or identify why other customers are more valuable than others. (maybe they are managed by a particular account manager etc)
When looking at the profile of your top customers you can usually identify similarities (e.g. age, gender, business type, employee numbers etc) this will allow you to build a more targeted prospecting base for future campaigns.
Blue Tahiti provide online applications that allow marketers to analyse their customer data online by profiling, segmenting and analysing your customer, contacts and transactional data.
Visit www.bluetahiti.com for more information or call 08456 383 277
0
We use two tools; an Ideal Customer Profile and "3 questions". The Ideal Customer Profile is a rating system that compares your companies unique or valued offerings with the customer's current and future needs. Your are looking to se how closely correlated your offerings are with your customers needs. The stronger the correlation, the better chance we have of winning.retaining that customer and creating a mutually beneficial relationship; basically their needs hit our sweet spot. Our Ideal Customer Profile looks at 5 categories (needs for our services, total possible volume, supplier involvement, collaborative culture and profitability). This helps rank our customers are focuses us in on where we need to work on our relationships.
The "3 questions" we always ask are 1) Do I like the people at the company? Could I go out and have a beer with them and enjoy myself? 2) Do I trust the company? 3) Can we both make money working together? If we can't definitely answer yes to all three questions, we know we are setting ourselves up for issues down the road.
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I think it's important to first understand what it is you want to know about your customers. Quantitative information is easier to gather (sales, profitability, longevity, etc.) but the qualitative (loyalty, perceptions of products and service, etc.) requires more commitment and work. However, the qualitative can be far more revealing and affords your company the opportuntity to be in front of your customers in a very intentional way. One-on-one interviews are a tremendous source of customer intelligence.
My firm, CI Consulting, helps clients gain customer insights and then leverage that intelligence to drive strategy, growth and innovation.
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