customer portfolio.pptx bnusiness process
- 2. • A customer portfolio is a collection of customer groups that encompasses a business's customer base. It helps the business understand the behavior, needs, and demands of its clients, or customers. Accordingly, firms categorize their customers into groups depending on their needs and the nature of their relationship
- 3. A customer portfolio can be used to: • Understand customer behavior: By understanding the different customer groups in a portfolio, businesses can gain insights into how customers behave and what they want. This information can be used to improve customer service, product development, and marketing campaigns.
- 4. • Manage customer relationships: By grouping customers according to their needs and the nature of their relationship, businesses can better manage their relationships with customers. This can help businesses to retain customers, upsell to customers, and cross-sell to customers. • Identify growth opportunities: By analyzing the customer portfolio, businesses can identify opportunities to grow their business. This could involve targeting new customer groups, expanding into new markets, or developing new products or services.
- 5. someof the factors that can be usedto segmentcustomerportfolios: • Revenue: This is the most common factor used to segment customer portfolios. Customers are typically grouped into categories based on their annual revenue. • Profitability: This is another important factor used to segment customer portfolios. Customers are typically grouped into categories based on their profitability. • Lifetime value: This is the total amount of revenue that a customer is expected to generate over their lifetime. Customers are typically grouped into categories based on their lifetime value. • Customer type: This refers to the type of customer, such as B2B or B2C. Customers can also be grouped according to their industry or sector. • Customer behavior: This refers to how customers interact with the business, such as their frequency of purchase or their level of engagement.
- 6. BASIC DISCIPLINES FOR CPM •market segmentation •sales forecasting •activity-based costing (ABC) • customer lifetime value estimation • data mining
- 7. market segmentation •Market segmentation is the process of dividing up a market into more-or-less homogenous subsets for which it is possible to create different value propositions.
- 8. Market segmentation processes can be used during CPM for two main purposes • potential markets to identify which customers to acquire • current customers with a view to offering differentiated value propositions supported by different relationship management strategies
- 9. companythat sells cloud-basedsoftwaremight segmentits customerportfolioby: • Customer value: The company might segment its customer portfolio by customer value, such as high-value customers, mid-value customers, and low-value customers. This would allow the company to allocate resources and attention to each customer segment accordingly. • Customer needs: The company might also segment its customer portfolio by customer needs, such as customers who need basic software features or customers who need more complex software features. This would allow the company to tailor its products and services to meet the specific needs of each customer segment.
- 10. • Once the company has segmented its customer portfolio, it can then develop marketing campaigns and customer relationship management (CRM) strategies that are specifically targeted to each segment. This will help the company to improve customer satisfaction, increase customer retention, and grow its business. • High-value customers: The company could offer exclusive discounts or benefits to high-value customers. • Mid-value customers: The company could offer personalized customer support to mid-value customers. • Low-value customers: The company could offer cross-selling or upselling opportunities to low-value customers.
- 11. Individual activity • How business markets are segmented?
- 12. sales forecasting • Sales forecasting is the process of estimating future sales. It is an essential part of customer portfolio management (CPM) because it helps businesses to allocate resources and attention to their customers more effectively
- 13. two main types of sales forecasting • Top-down forecasting: This type of forecasting starts with the overall market and then breaks it down into smaller segments. This type of forecasting is often used by businesses that sell to multiple industries or regions. • Bottom-up forecasting: This type of forecasting starts with individual customers or accounts and then aggregates them to get an overall forecast. This type of forecasting is often used by businesses that sell to a single industry or region.
- 14. different methods that can be used for sales forecasting • Time series analysis: This method uses historical sales data to predict future sales. • Trend analysis: This method identifies trends in historical sales data and uses those trends to predict future sales. • Judgmental forecasting: This method relies on the judgment of experts to predict future sales.
- 15. example of how the company might use sales forecasting • The company might forecast sales for the next year to be $10 million. This would give the company a realistic goal to work towards. The company could then use the forecast to develop a sales plan that would help them to achieve their goal. • The company might forecast that sales in the healthcare industry are expected to grow by 10% in the next year. This would indicate that the company should focus its attention on the healthcare industry. The company could then develop a marketing plan that would target healthcare businesses