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Measure for Success

Boosting the performance of your marketing

Author

Richard Milton

Hello there! My name is Richard Milton and I'm the founder and owner of e-nexus. We are a Bournemouth based consultancy that specialises in Strategic Marketing Planning & Performance Measurement. I regularly blog sharing some of our latest thoughts on strategic marketing and marketing performance. Showing how they can influence and transform your marketing efforts. Please take some time to read some of our blogs and subscribe for future posts.

Quote of the day

“Make generosity part of your growth strategy.” – Anonymous

 

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How important are existing customers to your business? Do you know?

How important are existing customers to your business? Do you know?

Who doesn’t want a good base of individuals or businesses who are loyal, regular, repeat customers. We all do surely, it makes sound business sense.

But do you know how important existing customers are to you business? Are you confident that you are placing enough emphasis on retaining existing customers compared to attracting new customers? Perhaps now is the time to find out by calculating your Returning vs New Customer Metrics.

These metrics will help you understand the real value of these two groups to your business and enable you, as with any good metric, to make decisions on how much time and money you should put into your marketing for the different groups.

• Start by calculating your Total Number of Customers either at a specific point of time e.g. 1st January or over a point of time e.g. in 2018. Now split these into new customers and repeat customers to see your new customer to repeat customer ratio.

• Next work out the Value of an Average New Customer to your business vs that of a Returning Customer over the lifetime of your relationship. We generally recommend it’s worth also considering the costs you incur with attracting new customers e.g. advertising and retaining existing customers e.g. loyalty incentives. You can now see the costs of generating business and how the business generated between the two groups varies over time. Does that value change over the period a customer stays with you?

• Finally look at calculating the Average Time a Customer Remains Loyal to your business. This is a good indicator of your customers views towards your organisation, how good you are at maintaining existing customer relationships and their likely purchase intentions.

What next?

With this understanding conduct a review of what you do to attract new customers and keep existing customers. Think about the time, money and effort you put into these two groups. Have you got the balance right? Should you for example amend your advertising spend or customer relationship management approaches? Should you consider incentives to either attract new customers or keep existing customers? Perhaps if you discover customers aren’t particularly loyal you should consider loyalty schemes or enhancing the quality of your customer service.

Whatever you do with this knowledge you’ll be in a much stronger position as a business to maximise the benefits from both groups and drive your business forward.

About the author

Richard Milton is founder of e-nexus Ltd – a Marketing Consultancy based in Bournemouth specialising in Strategic Marketing Planning and Performance Measurement. He is a career long marketer, holding numerous senior marketing positions throughout his 20 years in the profession. Describing himself as a marketing strategist, performance and measurement specialist, Richard spends time working with business owners, managers and marketers to help them improve their marketing decisions, investments and impact by harnessing the power of data and insights alongside his strategic experience.

Richard’s biggest passion is to help marketers show the value of their efforts and give them the confidence and skills to be able to share the story with their senior managers. Richard helps organisations understand the importance of measurement and metrics as well as appreciate the breadth of data available to them in todays marketing world.

To find out more about e-nexus and the services we provide please visit www.e-nexus.co.uk

Quote of the day

“A satisfied customer is the best business strategy of all.” – Michael LeBoeuf

CSR-ONLINE now LIVE

We are delighted to announce that the team at e-nexus has just launched the Bournemouth Chamber of Trade & Commerce’s (BCTC) new CSR website which can be found at www.csr-online.org

The Bournemouth Chamber of Trade & Commerce scheme has developed the CSR accreditation scheme to enable more businesses to be corporately socially responsible by:

Supporting charities by increasing donations to charities, increase staff volunteering and increase payroll giving.

Supporting employees by encouraging employers to support staff with flexible working, home working, stress management, gender and disability equality.

Supporting local businesses by encouraging businesses to buy from local and UK based businesses to create sustainable business communities and economic stability.

Richard Milton from e-nexus said: “We are delighted that the first stage of this exciting project has been delivered. We look forward to continuing to work with the Bournemouth Chamber on this exciting new initiative .”

Quote of the day

“Failure is nothing more than a chance to revise your strategy.” – Anonymous

Supporting businesses in Bournemouth

Quote of the day

“You cannot be everything to everyone. If you decide to go north, you cannot go south at the same time.” Jeroen De Flander

How loyal are your customers?

What do your customers think of your business? Would they recommend you, your products or services to their family and friends? Calculate your Net Promoter Score (NPS) and gauge your customer’s overall satisfaction with your business and their loyalty to your brand.

Net Promoter Score is used by many companies to gauge the loyalty of a firm’s customer relationships and serves as an alternative to traditional customer satisfaction research. What’s more, it’s felt by many that there is a strong correlation between a high Net Promoter Score and company growth. Your NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent.

Calculating your Net Promoter Score

To calculate your Net Promoter Score ask your customers, most likely in a simple survey how likely they are to recommend your company to a friend or colleague, using a scale of zero to 10, with 10 being highest. Then work out the percentage of responses that scored your company between seven and 10, then zero and six. Subtract the zero-to-six percentage from the seven-to-10 percentage, and you have your Net Promoter Score.

You can also take the opportunity when surveying your customers to ask some further questions on how and what you can improve to potentially push your NPS even higher.

Measure4Success is the blog for e-nexus Ltd.  We are a Bournemouth based Marketing consultancy specialising in Strategic Marketing Planning and Performance Measurement.  Learn more about what we and get in touch by visiting our website at www.e-nexus.co.uk

Quote of the day

A vision without a strategy remains an illusion – Lee Bolman

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