12-07-2013, 03:44 PM
Customer Retention: how to measure it, build it and keep it.
Customer Retention.ppt (Size: 4.41 MB / Downloads: 78)
How to retain them
Recruit the right customers to begin with
Once you have them, segment them by lifetime value
Communicate with them to build loyalty
Communications work!
Building a relationship with customers can be highly profitable
Using a database to recreate the old family grocer is a winning strategy
Relationship marketing is the way to go
What is lifetime value?
Net present value of the profit to be realized on the average new customer during a given number of years.
To compute it, you must be able to track customers from year to year.
Main use: To evaluate strategy.
What is the proper computation period?
Which is the correct lifetime value? 1, 2, 3, 4, 5 or more years?
They are all correct. Which you use depends on your product or service.
Long lifetimes: banks, insurance, utilities.
Short lifetimes: discount houses, package goods, catalogers.