Customer Lifecycle

Management
Capabilities needed to personalize an online experience over time.
Customer acquisition... Increasing
conversion… Reducing churn...
Forrester recently surveyed 221 marketing technology decision-makers and
influencers to discover their priorities and plans for technology adoption in
2021. Respondents resoundingly agree that improving customer

in particular,
experiences is their top technology theme —

improving online experiences.

Three reasons to invest in Customer touch point
management

Save Money An increase of customer loyalty of 1 percent is equivalent to a

10 percent cost reduction (source: Bain & Co.)

The probability of selling to a new prospect is only 5 percent

Increase sales to 20 percent while the probability of selling to an existing
customer is 60 percent to 70 percent (source: Marketing
Metrics)

Grow Profitability Customer loyalty accounts for 38 percent of margin, 40

percent of revenue growth and 38 percent of shareholder
value (source: Accenture Research).
Personalize the experience a customer has with you
over time

Retain

Customer
Engagement

Grow

Serve

Onboard
Acquire
Target

Customer Lifecycle
Personalize the experience a customer has with you
over time

Target: Deliver the right message at the right

time to the right channel

Phase 1: Recognize:
-Brand management
-Content Targeting
-Customer Segmentation
Retain
Phase 2: Anticipate
-Email marketing
Customer -Site marketing
Engagement -Geo targeting

Phase 3: Engage
Grow
-A/B Testing
-Predictive offers
-Mobile Marketing
Serve

Onboard
Acquire
Target

Customer Lifecycle
Personalize the experience a customer has with you
over time

Acquire: Persuade the customer that you will

meet and exceed needs

Phase 1: Recognize:
-Offer Management
-Persuasive content architecture

Phase 2: Anticipate Retain

-Community
-Recommendations
Customer -*Scenario management
Engagement -Rich media

Phase 3: Engage
-*Behavioral Targeting Grow
-Instant Messaging

Serve

Onboard
Acquire
Target

Customer Lifecycle
Personalize the experience a customer has with you
over time

Onboard: Convert prospects into customers

Phase 1: Recognize:
-*Commerce
-*Merchandising

Phase 2: Anticipate
-*Product configurations Retain
-*Rich Visualization

Customer Phase 3: Engage

Engagement -Guided Selling
-Contract Management

Grow

Serve

Onboard
Acquire
Target

Customer Lifecycle
Personalize the experience a customer has with you
over time

Serve: Allow customers to self serve in a

collaborative environment

Phase 1: Recognize:
-Account Management
-Customer Feedback
-Ratings
Retain
Phase 2: Anticipate
-Issue resolution
Customer -Real time alerts
Engagement
Phase 3: Engage
-Click to call
-Innovation management Grow

Serve

Onboard
Acquire
Target

Customer Lifecycle
Personalize the experience a customer has with you
over time

Grow: Deepen your relationship with your

customer base

Phase 1: Recognize:
-Online Community’s
-Special Pricing

Phase 2: Anticipate Retain

-Cross Sell
-Lifecycle dialogs
Customer
Engagement Phase 3: Engage
-Sales dashboards
-Event based workflows
Grow

Serve

Onboard
Acquire
Target

Customer Lifecycle
Personalize the experience a customer has with you
over time

Retain: Reduce your customer churn

Phase 1: Recognize:
- Enhanced content
-

Phase 2: Anticipate
-Event based dialogs Retain
-Knowledge Base
-Expert location
Customer
Engagement Phase 3: Engage
-Click to call
-Instant messaging
Grow

Serve

Onboard
Acquire
Target

Customer Lifecycle
Customer Portfolio Management:
Taking CRM to the Next Level
Overview

• Most companies claim to be customer-centric, but are not in reality

• Traditional CRM fell short of promise, because of process automation
at the tactical / departmental levels
• Customer Portfolio Management – a strategic approach to deploying
CRM
Customers: Assets or Marketplace?
• Customers are revenue producing assets
• Not an undifferentiated marketplace
• Do you know your customer segments?
• What metrics do you use to measure customer relationships?
• Few companies measure CR according to its strategic goals
• Fewer companies measure CR in terms of cost and capital to acquire
and retain them
The Transition from Market Share
to Customer Share
• “The best 20 percent of customers account for 150 percent
of total profits. The worst 20 percent typically lose money
equal to 75 percent of profits.” - Geoffrey Colvin (Angel
Customers & Demon Customers)
• Companies must focus more on identifying and preserving
valuable customers instead of retaining and growing market
share
• Acquisition of AT&T Wireless by Cingular
• The real motive was AT&T’s customers
• Each AT&T customer was worth $1,860 to Cingular
Do You Have Any Unprofitable
Customers?
• bottom 20 percent of a company’s customers
account for losses of up to 75 percent of total
profits
• cost of customer acquisition is much more
expensive than the cost of selling to the existing
base.
• Classify customers based on key metrics such as
• Needs, profitability, cost to serve, buying trends, and
strategic value
AGF – Investment Management
Company
• Facing a mature market, not much room for growth
• Used analytics to find that
• 29% of customers were responsible for all asset growth
• Yet, only 50% of them were receiving adequate support
• Was able to design programs that used resources more appropriately
Knowing the customer

• Use CRM tools to develop metrics

• Classify customers into groups
Customer portfolio
What next?

• Profit laggards – Identify cause of nonprofitability and control costs

• Revenue laggards – Valuable opportunity to readjust packaging and
positioning of products
• Unprofitable customers
• What makes them unprofitable?
• Any Plan of Action to make them profitable
What to do with them?
More specific suggestions