Consumer Life Time Value
Quantifying the “value” of customers is absolutely essential in regain management. In fact, the percentage of profit a company makes from continued sales to its own customer base is consistently higher than the profit made on original sale..
Each of the customers then delivers an income stream and the stream of profit far exceeds the value of original purchase. Income streams contribute cash flows in terms of years for any single product.
Regain Strategies:
• Customization
• Differentiation Strategies
The lost customer would be segmented differently from the existing customer. Base and the company could provide additional features and benefits to win them back.
“Wow” Syndrome
For example, a client checks into a hotel and his/her room isn’t ready. The clerk could respond by “You are in luck! Your room isn’t ready. That means you get to eat breakfast “on us” and use our business centre for free!”
Quantifying the “value” of customers is absolutely essential in regain management. In fact, the percentage of profit a company makes from continued sales to its own customer base is consistently higher than the profit made on original sale..
Each of the customers then delivers an income stream and the stream of profit far exceeds the value of original purchase. Income streams contribute cash flows in terms of years for any single product.
Regain Strategies:
• Customization
• Differentiation Strategies
The lost customer would be segmented differently from the existing customer. Base and the company could provide additional features and benefits to win them back.
“Wow” Syndrome
For example, a client checks into a hotel and his/her room isn’t ready. The clerk could respond by “You are in luck! Your room isn’t ready. That means you get to eat breakfast “on us” and use our business centre for free!”