What is Customer Success?
So what is customer success? It is a no-brainer, right? Customers are successful in a company’s product. The above statement is just a part of it. The meaning of customer success depends on which side of the relationship you are on. From the other side of the relationship between customer and service provider, one could say that: A vendor is successful with its customers. Both the customer’s success and the service provider’s success should be considered when defining and setting up a customer success program. The first definition, based on customers being successful with the product, could mean measurement KPIs for customer success. Customer satisfaction, for example, with a focus on tactics such as more free resources, more free trainings or cheaper pricing. The second definition, based on the vendor being successful with its customers, could lead to more hard-nosed sales KPIs such as revenue and average revenue per customer,…
The Digital Transformation of Companies
Customer experience is at the heart of corporate strategy in the digital age. Companies need an ongoing digital transformation to achieve the sort of experience that customers seek out again and again. This article shows the several stages of digitalisation – including how digital and analogue companies differ – and explains how digitalisation impacts the customer experience. Digitalisation may be a thoroughly modern phenomenon, but it hinges on a classic concept of the purchase processes: Each and every customer goes through different touchpoints, with various companies, during his or her journey towards becoming a customer. Let’s start with the idea that every customer has a general problem or question that requires a solution. In this age of constant, data-driven solicitation by companies for customers, a purchase process often begins with entertainment: A problem or desire is created – for example, the desire for a sportier and safer car – even…
Data-Driven Marketing. Making Analytics Data Actionable
Remember Pareto? Eighty percent of your sales come from twenty percent of your customers. You’re in business largely because of a fraction of your customer base: your best customers. But who are they? And what to tell them when and where? The foundation for making these decisions is customer segmentation. Not all visitors have purchased identical amounts. Some have ordered more recently, some have ordered more often, some have ordered more, period. Consequently, not all visitors should be contacted with the same effort and expense. And the methodology for figuring out which ones to contact is RFM: Recency, Frequency and Monetary value. RFM methodology in a nutshellRFM uses primarily sales data to segment a pool of visitors/customers based on their purchasing behaviour. The resulting customer segments are neatly ordered from most valuable to least valuable. This makes it straightforward to identify best customers. The logic behind RFM is quite simple: Customers…