1. Retain existing customers; reduce churn — very important during an economic downturn
2. Acquire new customers
3. Move customers up the customer hierarchy — from “satisfied,” to “loyal” to “raving fans”
4. Deselect and let go of unprofitable customers — help them find a good alternative to you
5. Win-back lost customers
6. Increase lifetime customer value
7. Target/reward more profitable customers
8. Build long-lasting, profitable customer relationships
9. Create advocates for your business
10. Adjust your pricing, and reward, strategy to improve profitability
11. Respond to competitive challenges and remove your competition from your loyal customers’ “considered set”
12. Select products and services you offer or feature more effectively
13. Optimize merchandising and sales planning
14. Reduce promotion and advertising expense
15. Select new targets based on profitable customer profiles
Do you know who your most profitable customers are?
Have you asked them why they buy your product or service?
Do you understand why your loyal customers are loyal?
Have you asked them what you should start doing? Stop doing? Continue doing?