Whether executing intensive customer acquisition programmes or increasing revenue and customer loyalty from an existing customer base, we achieve results for our clients. We add real value through our expertise in customer segmentation allied to our understanding of our clients’ strategy and objectives.
Our customer acquisition team has enjoyed unparalleled success. We have successfully acquired hundreds of thousands of customers for high profile utilities, telecoms and entertainment clients.
Customer Retention & Win-Back
Most firms consider the lost customer a lost cause. In this recession period, PRISM Research proves that winning back lost customers can be a rich source of renewed revenue and customer loyalty for any firm. With the average company losing 20 to 40 percent of its customers every year (for Web-based companies, defection rates are substantially higher), it is imperative that firms create outsourced strategies, not only for acquisition and retention but also for win-back.
In the field of Customer Retention & Win back PRISM Research is the big giant, providing the world class services in U.K. and entire world.
We are committed to delivering quality research. We are a complete Market Research Company to serve your business needs.
Customer Win Back
There are three main marketing objectives:
1. Acquisition of new customers
2. Retaining and developing existing customers
3. Winning back lost customers. When solving his tasks a marketing manager has to focus on both customers and potential customers who are the most loyal and profitable ones. Calculation of CLV will be a wise way to decide where or not to invest in the market.
Because of an increasing defection and churn in most market sectors (say Telecom and the Financial Services Industry) and increasing acquisition costs the interest of how to Win Back successfully the most profitable lost customers is now a major focus area in many companies. The problem is that the know how and data about Win Back is lacking because of Win Back being an unexploited area so far. Most companies still do not have a Win Back strategy. Most companies still only make ad hoc transitional Win Back activities.
Therefore Loyalty Management has developed a new Win Back concept/product. The consultancy solution is aiming at helping clients to create and implement a Win Back strategy based on both customer loyalty and profitability.
The definition of Win Back is: “A structured process for regaining the most loyal and profitable of the lost customers”.
New international research reports have concluded that not all defected customers are worth winning back. This is similar to the fact that not all potential customers are worth acquiring to become new customers. Further research reports have concluded that the CLV (Customer Lifetime Value) of a regained customer will not be the same CLV as before the customer defected.
Therefore Loyalty Managements Win Back concept differs between the First CLV (CLV before defection) and the Second CLV (CLV if regained).
It may sound strange, but the fact is that a customer who has defected and has been regained will usually have a higher CLV than before he or she defected. There are several reasons for this paradox.
* The company might have improved its customer service or changed other factors that caused the defection.
* The customer may have tried other suppliers since defecting and realised that the original
company offers better added value. This is a good situation: the recovered customer will be less interested in competitors’ communication and it will be more difficult for a competitor to entice him away.
* A recovered customer might choose to buy more products from the company than before the defection, and might thus become a Total customer with a higher Retention rate and a higher CLV.
Before a company decides whether to try to win back defected customers it needs to realize that not all defectors are worth winning back. Thus it is wise to at least segment lost customers into a four- quadrant matrix based on two criteria: The profitability of the second CLV and the probability of winning the customer back. The figure below shows the matrix.
A structured Win Back project at least includes the following steps:
* Analysing of the situation (defection causes etc)
* Making a business case for Win Back (including reporting international best practise)
* Defining Win Back objectives
* Creating a Win Back strategy
* Planning the implementation (including organisational development and Win Back processes)
* Evaluating the economy and resources needed
* Measuring results
The process of conceptualizing and then conveying a final product or service worldwide with the hopes of reaching the international marketing community. Proper global marketing has the ability to catapult a company to the next level, if they do it correctly. Different strategies are implemented based on the region the company is marketing to. For example, the menu at McDonald’s varies based on the location of the restaurant. The company focuses on marketing popular items within the country. Global marketing is especially important to companies that provide products or services that have a universal demand such as automobiles and food.
Global Markets! The buzz word of modern finance has generated intense interest during the past few years. Yet it is a phrase often misconstrued to describe numerous separate, and interrelated activities in the world economy.
Global markets have come to be seen as the epitome of the information age, where the instantaneous transmission of data results in immediate transfer of capital, material, and other resources to wherever the yields seem most advantageous.
The extent to which the world economy has progressed towards efficient global markets depends upon how these markets are defined. Markets which have historically been tied to international trade are most readily identified as being global. Trade in primary raw materials and manufactures has been recorded throughout history, with goods produced in many regions and exchanged in markets around the globe.
Global markets in this context comprise a number of local exchanges, operating in tandem, and influencing market prices through the generally accepted interaction of supply and demand.
The Definition of a Global Market
In the 20th century, globalization took hold of the worldwide economy, creating new concepts and ideas designed to control and explain the conditions now existent for investors. What is the definition of a global market? This article will explain the theories behind the facts.
What is the definition of a global market? In terms of investing and capital flow, a global market is the main driving force behind international finance and trade. It deals with concepts on both a micro and macroeconomic scale. Concepts such as futures, swaps and options are a centralized concern in terms of the global economy, impacting the success of investments in different markets. While one geographical region may provide a better value for certain commodities or industries, others often reward the investor with a higher rate of return for the same amount of capital influx.
marketing strategy app.
How much have you invested in sales and marketing over the last few years? Thousands? Tens of thousands? Millions? Tens of millions?
Customer retention is about keeping the customers you’ve spent that money to acquire. And if you’re in an industry where they make multiple purchases over the years, your entire team should be very focused on retaining those customers:
- Delivering service that’s consistent with your value proposition and brand
- Cross-selling, up-selling and asking for referrals from existing customers
- Developing programs to increase customer loyalty and decrease turnover
- Knowing the lifetime value for different segments and using that data to improve your marketing
- Prioritizing retention as a major focus in your annual marketing plan
Studies say it costs ten times more to generate a new customer than to maintain an existing one. If you have a small number of customers, losing a few could cripple your company. Even if you have a large number of customers, a small increase in your retention rate should dramatically increase your profits. In fact, in his book The Loyalty Effect, Fred Reichheld writes that “a 5% improvement in customer retention rates will yield between a 25 to 100% increase in profits across a wide range of industries.”
With strong retention marketing, it’s much easier to grow your revenue and profitability. Do you see your company in any of these scenarios?
Your company is focused on customer retention and it has paid off. Renewals are high; you put a lot of effort into campaigns and service for existing customers. Sales reps are incented to keep customers happy, and you use financial modeling and surveys to identify problems and focus on vulnerable customers. Your revenue has grown substantially each year because you’re adding new customers without losing current ones.
You know how important it is to retain customers. The reps who service existing business are good, but you’ve lost some customers that you shouldn’t have. You’ve done surveys but haven’t done anything major as a result. And you struggle with the commission for current business – some people argue that you shouldn’t pay at all because they’re house accounts.As a result, you have to replace current customers each year.
You don’t formally market to your current customers. You know your service could be better, but you haven’t had the time to develop an improvement plan. You definitely have more turnover than you’d like.As a result, you’re continually investing to generate new customers. Your revenue profit margins are much lower than they could be, and the churning takes its toll on your organization.
Customer Retention Key Concepts & Steps
Before you begin
You can work on your customer retention strategy at any time, and marketing campaigns may be an important part of your strategy. You may also decide to increase your focus on retention when you’re writing your annual marketing plan. But if you’re losing customers, don’t hesitate to focus your energy on retention right now.
Determine your retention strategy
Your value proposition and brand strategy should drive your retention plan. For example, if your value proposition is customer intimacy, your customers are counting on great service. If they’re buying on price, you’ll usually focus more on automating service to minimize costs.
Build your team
In some industries, the original sales rep is the best person to manage an existing client — for example, the account may require ongoing selling. In other cases it’s better to transition the customer to an account rep who focuses on day-to-day management.
Once you’ve decided how to structure the team, determine how many people you’ll need and start recruiting.
Pay commission for renewals and growing the business
Your current customers are your most valuable asset; if your sales reps don’t earn commission on renewals, they’ll be incented to spend their time chasing new business instead.
Market to existing customers
Put as much effort into your current customer campaigns as you do the rest of your marketing programs. Know your audience, grab their attention, focus on the offer, measure your results. Use campaigns to
- Nurture your customer relationships
- Encourage them to buy again
- Expand your relationships by cross-selling, up-selling and asking for referrals
- Identify customers who are at risk of defecting
- Continually deliver on your value proposition and brand promise
Measure purchase intent and loyalty, not “satisfaction”
Customer feedback can help you improve your products and continue your relationship. However, it’s not effective to measure “customer satisfaction” because it’s so vague. “Satisfied” doesn’t mean they intend to keep buying. Instead, focus on behavior: Ask whether they intend to buy again and why or why not. Ask what three things you can improve and whether they’ll provide referrals. These questions provide more actionable insight than “satisfaction.”
Treat a survey as a marketing campaign. Give your customers a reason to respond, thank them and share the results.
Use data to evaluate large groups of customers
If you don’t have personal relationships with your customers, use data to identify customers who haven’t purchased in the normal timeframe. They may be at risk of defecting and you can launch retention campaigns and encourage them to stay.
After Customer Retention
Refine and improve your customer retention strategy and execution — they may deliver the highest ROI of all your marketing programs.
1 Frederick Reichheld, The Loyalty Effect (Harvard Business School Press, 1996)