Retention & cross selling

Retention
means
“ holding on to customers “

• Company must arrive at definitions of former

and current customers.
Exploratory analysis
 Which variables to be included in the final
model?
• Investment behavior
• Number of products that the customer
purchases
• Earned rate of return
• Customer satisfaction
 Cross-Selling
“It is the sale of products to current customers
who are already purchasing one or more
products from the supplying company.”
 Forms of cross selling
• Cross-selling over time
- A customer who buys more than one of the same product during a
contact
- A customer who buys two or more different products during a
contact
- A customer who buys a second or third product at a later time.

• Cross-selling within the product range

- A customer who buys another product within the same product
category
- A customer who expands the products he or she buys from the
organization by buying a product from another category
Exploratory analysis: Economic significance
of cross-selling
The effects of marketing
activities
Evaluating the effects of marketing activities
on the customer value
• Effectiveness of the sales process
• Effectiveness of targeting
• Contribution of marketing activities to the
lifetime value
Effectiveness of the sales process
 The effectiveness of targeting
• Who do we select for a specific sales process?
• From the perspective of the relationship
strategy, who should be approached with the
offer?
 Allocation of resources
Growth Retention

Attracting new Follow –up leads

customers
Contribution of marketing activities to
the lifetime value
• Each interaction takes the relationship one
step further
• influences future interactions and the
direction of the relationship
• Welcome call, a complaint, a reward for
continuing the relation, a price discount
during a sales week
Experiments
 The learning organization
“know-how is expanded and deepened in all of
its aspects”

• Learning is the process in which knowledge is

created from the experience gained.
Knowledge management
Thank you!