Analytic Solutions are designed to enhance other programs, but can be standalone as well. These offer a deep dive into the data to truly understand customer behaviors and their triggers.
CUSTOMER RISK MODEL
Most companies lose between 4% and 20% of their customers each year. Which of your customers are most at risk of defecting in the next 6 months?
The LRC’s Customer Risk Modeling identifies those customers by examining how recent quits differ from the rest of your customer database. Do they purchase in different patterns? Have they recently been involved with your Accounts Receivable department? Do they tend to be in certain geographies or demographics?
The output of this program identifies the customers in your database that are most at risk in the next six months. This enables you to build a set of support, marketing and sales programs to intervene and stem those defections.
OPPORTUNITY ANALYSIS SOLUTION
For many companies, existing customers are the best source of revenue growth, primarily through a larger share of spend or cross-purchase of more of the product line.
Which existing customers represent the best opportunity?
This program identifies those opportunities by customer to help you target your marketing and sales effort. The LRC builds a model to profile your entire customer database, indicating the strength of opportunity, the dollar value of that opportunity and the products and services they are most likely to buy.
FINANCIAL MODELING AND SIMULATION
Findings from a variety of sources, including primary LRC research, indicate that the customer base represents a significant component of the total asset valuation for most companies. The LRC finds that organizations tend to get over 65% of their asset valuation from their Loyal customers – typically 30% of their total customer population. They get less than 10% of their overall asset value from their Vulnerable customers – roughly 20% of their customer population. Create more Loyal customers (and fewer Vulnerables) and the value of your enterprise will increase.
This modeling takes the results of a Loyalty Assessment Program, couples it with financial metrics and produces a financial valuation of the customer base. This usually is broken out by various segments. The modeling provides a guide to planners in determining which segments to address. A further aspect is a simulation effort that demonstrates how the financials will change if customers can be migrated from one relationship segment to another.