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Boosting the performance of your marketing

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Who are your top customers by Profit or Life Time Value?

Have you ever stopped and calculated who are your best customers?  It sounds simple but how often do you identify and rank the customers who drive the most profit for your business?

Ranking these customers from highest to lowest by Profit or Life Time Value lets you see which individuals or groups drive an outsized portion of your business results.  When you can look at a single list and see your main customers you have the power to identify the unique characteristics of your customers and work hard to attract more.  Is it who they are, where they live, or what they buy?

Knowing that answer can be more valuable than just making a sale. By focusing your customer service, marketing, promotions and sales offers you can build the long-term value of these customers.  You can also find more existing and new customers who share the same characteristics as well as empower these customers to become advocates of your business.

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

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It would be funny if it wasn’t so true!

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Corporate Social Responsibility accreditation for e-nexus

We are delighted to announce that we have been awarded a Silver award for 2018 by the Bournemouth Chamber of Trade & Commerce Corporate Social Responsibility Accreditation Scheme. We were awarded the Silver award at the Chamber’s BH Banter event on Monday evening in recognition of our voluntary support for charities and SMEs in Bournemouth.

CSR accreditation
Awarding of Silver accreditation

You too could sign up and be recognised by the scheme that is designed for businesses to encourage their support for charities, employees and local businesses. Find out more by visiting the Chamber’s CSR blog.

Quote of the day

Success is the result of good judgement, which is the result of experience, experience is often the result of bad judgement. – Tony Robbins

Connecting insight, data & creativity to transform your marketing – e-nexus evening seminar – 25th June 2018

Want to transform the impact of your marketing? In our next seminar taking place in Southbourne, Bournemouth on 25th June we’ll show you how best to connect data, insight and creativity to boost your marketing efforts & ROI. During the session we’ll focus on:

• The benefits of using data and insight to measure & monitor your marketing efforts.
• Identifying the types of marketing data you have access to and how you can begin to fill any data gaps.
• How you can turn your marketing data into meaningful insights for your business.
• How you can connect your data and insights with your creative approach to engage more of your customers successfully.

Who should attend?

This seminar is ideal for anyone who wishes to enhance their marketing and wants to better understand how to connect data, insight and creativity to optimise their marketing efforts.

The seminar is hosted by Richard Milton – a career long marketer who specialises in marketing strategy, performance and measurement. Richard spends his time working with business owners, managers and marketers, supporting them to improve their marketing decisions, investments and impact.

Book NOW to claim your ticket – space is limited so please book early to avoid disappointment.

17.30 – Registration & networking
18.00 – Seminar
19.15 – Q&A
19.30 – Seminar closes

Location:

Brewhouse & Kitchen – Southbourne
147 Parkwood Road
Bournemouth
BH5 2BW

 

 

Retention rates

3d  puppet, installing the diagram. Objects over white

Do you know what you spend on gaining new customers compared to keeping the customers that you already have? How effective are you at keeping your current customers? With all of the time, resources, and money put into acquiring customers it is important to know that your efforts aren’t wasted when customers don’t remain loyal.

Your customer retention rate is a great way to measure how successfully you are maintaining customer relationships. On a more granular level, you also need to know which types of customer you are remaining loyal and at which point in the relationship a customer leaves, so that you can make the necessary adjustments.

According to a recent study by social media marketing software provider, Flowtown, they found that maintaining existing customers costs six to seven times less than acquiring new customers. A study by Bain and Company reported that increasing your customer retention rates by just five percent led to an increase in profits between 25 and 95 percent.

Calculating your customer retention rates

Step #1

The first thing you need to do to calculate your retention rate is identify the specific period of time you’re focusing on. Perhaps you’re looking at the last year or maybe the last six months.

Step #2

Next, you need to know how many customers you had at the end of that period of time. If you’re calculating a current retention rate at the end of the period during which you’d like to measure, it might be as easy as determining how many customers you currently have. This number is represented by CE in the formula.

Step #3

You also need to know how many new customers were acquired during the period of interest, so that you don’t include them as retained customers in your final retention measurement. This number is represented by CN in the formula. Now you’re ready to do your first calculation: subtract your CN number (new customers acquired during the period) from your CE number (number of customers at the end of the period).

Step #4

The final number you need to know is how many customers you had at the start of your period of interest. This number is CS in the formula. For your next calculation, you will take the solution to Step 3 (CE-CN) and divide it by how many customers you had at the start of your period (CS). This covers the first part of the equation: ((CE-CN)/CS)

Step #5

Finally, you want to turn that number into a percentage by multiplying it by 100. Your final number is your customer retention rate for your period of interest. ((CE-CN)/CS)) x 100.

Based on an article by on the socious community blog.

http://blog.socious.com/bid/70287/how-to-accurately-calculate-your-customer-or-member-retention-rate

Your top customers by Profit or Life Time Value

Sounds simple but identify your customers who drive the most profit for your business. Rank them and understand how impactful they are as individuals or as a segment for your business.

Ranking these customers from highest to lowest by Profit or Life Time Value lets you see which individuals or groups drive an outsized portion of your business results.  When you can look at a single list and see your main customers you have the power to identify the unique characteristics of this group and work hard to attract more.  Is it who they are, where they live, or what they buy?

Knowing that answer can be more valuable than just making the sale. By focusing your customer service, marketing, promotions, and sales offers, you can build the long-term value with these customers and find more existing and new customers who share the same characteristics.

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Returning vs New Customers

Do you have a good balance of returning vs new customers? How well you are maintaining your customer relationships over time?  How much do new customers compared to your returning customer spend with you?

The returning vs new customer metric can help you to compare the value an average new customer brings to your business vs a returning customer over the lifetime of your relationship. It’s worth considering with this metric the costs associated of attracting new customers compared to that of existing customers.

Use this metric to monitor the split over time or see how the business generated between the two groups varies over time. It can be an early indication of longer term customers views towards your organisation and their likely purchase intentions. For a product that supports repeat customers more so than one-time buyers, this can be the difference between struggling and thriving business.

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