Customer Insight
Customer needs/wants/expectations
Understanding the voice of the customer, their needs, wants and expectations for your products and services enables you to understand what problems your offering is resolving for them. Understanding this and how it evolves generates product and service innovation opportunities to improve customer satisfaction.
Consumer expectations reflect past and current product and service evaluation and user experience. The voice of the customer helps identify gaps between expectations and experience, with any misalignment impacting customer satisfaction.
Customer Segmentation
People are diverse, play different roles depending on the situation and are all customers of organisations both at work and home. A segment is a group that reflects similarity amongst its members, common characteristics identified via internal and external information.
Segmentation enables customisation of sales, marketing and customer service interactions for new, existing and prospective customers. The goal of dividing the customer base into segments is to maximise the value of each customer to the organisation and ensure services/products align with customer expectations.
Customer Lifetime Value
Customer profitability is crucially important for continued business success. It identifies whether customers are profitable or loss-making (yes some of your customers may well be costing you money). Understanding the customer lifetime value allows your business to actively manage the services and products it provides to customers to increase overall business profitability.
Average Revenue Per User (ARPU) identifies how much revenue is being generated by a customer or segment, however it doesn’t predict their behaviour or how profitable they are.
Customer lifetime value incorporates the current and predicted future customer revenue, predicted activity based costing (fixed and variable recruitment costs, x-sell costs and cost to serve) and predicted churn levels over a defined period plus a terminal value.
Customer Relationship Management
The more technology advances the more integrated it becomes in our lives and the boundaries between channels blurs. Maintaining a clear and consistent dialogue with customer across all channels is key to ongoing success. Customer Relation Management (CRM) centres on next best action, personalised interaction with customers to improve loyalty and return on investment for marketing activity.
Multi-channel combines offline and online channels to target and engage customers however channels are generally siloed with little if any interaction/knowledge transfer between channels. Omni-channel provides a seamless experience, consistent messaging and offers, across all communication channels (desktop, mobile, telephone, social media or bricks and mortar store) with your customer offering, enhanced customer experience leading to improved retention, reduced complaints and growth.
