Retain Customers
- 1. WHO AM I? GUESS IN 1945, I BORROWED $20,000 FROM MY IN-LAWS AND OPENED MY FIRST RETAIL STORE IN A SMALL COMMUNITY IN NEWPORT, ARKANSAS. IN 1950, THE LANDLORD REFUSED TO EXTEND THE LEASE AND KICKED ME OUT OF MY BUSINESS. IN 1962, I OPENED THE FIRST WAL-MART. IN 1992 WHEN I DIED I WAS THE RICHEST PERSON ON THE EARTH
- 2. WHO AM I? GUSS I WAS 33 YEAR OLD, IMMIGRANT. MY TWO PREVIOUS BUSINESSES FAILED MISERABLY. I HAVE NO MONEY LEFT AND I WANTED TO OPEN A TEA SHOP IN A 650 SQFT SHOP AT A WORST LOCATION POSSIBLE. CITY REFUSED TO GIVE ME LICENSE AND NEIGHBORS DIDN’T LET ME OPEN A PATIO. MY FIRST MONTH SALE WAS $70 IN ONE MONTH MY CUSTOMERS INCURRED ABOUT $175,000 IN PARKING TICKETS I AM SHELLY HWANG AND THIS IS THE STORY OF
- 3. MAKE GROWTH STRATEGY EVOLUTIONARY MOVES INSIDE THE BUSINESS THAT HAVE New REVOLUTIONARY Existing IMPACT ON THE MARKET Renewal New Existing Leverage Build Transfer
- 4. PROTECT & RENEW What did your dad tell you? Home Runs, or Singles & Doubles? “While home runs provide the opportunity for a quantum increase in the growth trajectory, they are unpredictable and don't happen all the time. Singles and doubles, however, can happen every day of the year. They result from a determined, day-in and day-out improvement in the activities and social processes of a company; they form the drivers of profitable revenue growth.” The Things Dad Gave Us by: H. Pants - Ram Charan, Man of Mystery
- 5. YOU‟VE GOT CUSTOMER EQUITY CUSTOMERS, NOW WHAT? A COMPANY IS ONLY AS GOOD AS ITS CUSTOMERS THINK IT WILL BE THE NEXT TIME THEY DO BUSINESS WITH IT. ACQUIRING NEW CUSTOMERS IS NOT THE END GAME: THE FUN STARTS ONCE YOU HAVE A CAPTIVE AUDIENCE.
- 6. IS CUSTOMER CUSTOMER SATISFACTION TRULY THE KEY? The only way you can afford to grow in tough times is through referrals. SATISFACTION Word-of-mouth has always been the Holy Grail and is trusted 78% of the time. 75% of a company’s business comes from repeat customers. Take the money you would have spent on marketing, put it into the customer experience, and let them market FOR you! Retention is the new Acquisition!
- 7. NET PROMOTER SCORE THE ULTIMATE QUESTION: How likely is it that you would recommend our offering to a friend or colleague? NET PROMOTER SCORE
- 8. NET PROMOTER SCORE: HOW TO CALCULATE NPS NET How likely it is that you would PROMOTER recommend us to your friends SCORE or colleagues? Please rate us on the scale of 0 to 10. Where 0 = Extremely Unlikely and 10 = Most Likely 79 PASSIVE 46 0 1 2 3 4 5 6 } 7 8 9 10 73 20 } 10 PROMOTERS 47 DETRACTORS NET PROMOTER SCORE = % PROMOTERS - % DETRACTORS
- 9. “COMPANIES BECOME CUSTOMER-OBSESSED CUSTOMER PROFITABILITY RATHER THAN CUSTOMER-FOCUSED. WHEN THE CUSTOMER SAYS „JUMP,‟ THEY ASK „HOW HIGH?‟ ” – ROBERT S. KAPLAN Only 20% percent of customers are responsible for 80% of the profit!
- 10. FINDING THE TREASURE Profitable You shouldn’t have WOW them with any customers special offers, and here; if you do, your charm is loyalty programs. Make them part not working on them: change of your family. your tactics. Provide them with tools to promote your products. Offer new and Understand exciting Breakeven customers’ Understand products. pain and find customers’ ways to win hesitations and them over. offer additional incentives. Be cautious and selective in promotions Be cautious and Unprofitable selective in You shouldn’t have promotions. any customers Seriously here; if you do, you are consider firing winning loyalty at a steep these price. customers. Detractor Passive Promoter
- 11. A CUSTOMER‟S LIFETIME VALUE IS THE CUSTOMER LIFETIME VALUE AVERAGE PROFIT THEY WILL GENERATE FOR YOU DURING THE TIME THEY ARE YOUR CUSTOMERS.
- 12. CUSTOMER LIFETIME VALUE Profitable Market Market Segment E Segment A Breakeven Market Segment C Market Segment B Market Segment D Unprofitable Bubble Size is the function of market segment size, and customer lifetime value Detractor Passive Promoter
- 13. START THE CONVERSATION & UNCOVER MANY REAL OPPORTUNITIES THAT MAY HAVE BEEN PREVIOUSLY HIDDEN IN PLAIN SIGHT. CPSPHERE IS AN INNOVATIVE MANAGEMENT CONSULTING FIRM, FOCUSED ON STRATEGIC SALES AND MARKETING AND ITS HANDS-ON EXECUTION. RESULTING IN INCREASED SALES AND IMPROVED PROFITS. WWW.CPSPHERE.COM | 310.645.0707 | GROWTH@CPSPHERE.COM 5777 W. CENTURY BLVD. SUITE 1250, LOS ANGELES, CA 90045