4. Retention Customer Cycle Acquisition Marketing Acquisition Marketing Presale Sales Process Post Sale Renewal Process Separation R e t e n t I o n M a r k e t i n g Predictive Modeling POS Analysis segmentation Customer Courtship Relationship established Relationship Nurtured Relationship Renewed Relationship Terminated Los t Revenue Normal Attrition Add’l Revenue Delivered Promises Made Up sell opportunities unfulfilled Preserved Revenue Met Dissatisfaction Expectation Set Retention Not met Churn Customers Saved customer
5. Strategic Partnerships Sales Centers Retail Stores Sales Collections Finance Retention Marketing Strategic Partners IT Save Desk Acquisitions Marketing Customer Operations Network Product Mgmt Promotions Activations Call Centers Establishing and managing these partnership are critical success factors
6. Presale “Period of prospecting and interacting with customer prior to agreement to purchase” Customer Courtship Sales and Marketing efforts should: Identify and be attentive to customer wants and need Make Customer feel appreciated and valued = “Special” Promises in marketing and sales campaigns should be: Deliverable – Meets Customer wants and needs Realistic – Insures customer wants and needs are in alignment with company and its strategic partners ability to deliver. Expectations Appropriately Set to be Adequately Met (ASAM) A customer can only be dissatisfied when their experience is less than expectations.
7. Sales Process Period between service agreement and delivery/installation. Transparent No surprises Installation (Service) Billing Confirmation All parties are in agreement on purchase Absent of assumptions Customer understands purchase. Few questions Purchase reinforcement through timely follow up Expectations (ASAM) Presale expectations met
8. Post Sale – Day 1- 360 “Period after delivery/installation of service thru end of 1st year of service” Continue the courtship Continue the behaviors and actions that made customers feel special. Early Life Focus on developing habituation Continue product/service education Service Issues Focus on solving the problem Eliminate the problem - Root cause Analysis Minimize reoccurence through root cause identification and resolution Expectations (ASAM)
9. Post Sale – Day 1 and Beyond “Period between delivery/installation of service and service renewal or termination” Proactive Retention True Proactive Elimination of Root causes Reactive Proactive Identification of issues and customer challenges and responding prior to the degradation of the experience to the point where the customer moves toward cancellation of service. Reactive Retention Enhance Save desk experience Maximize Save rate while minimizing cost per save Compensation/Incentives directly linked to problem resolution & extended service period Reward Loyal Customers Ensure that long-standing, high value customers understand and know that they are appreciated, valued and not taken for granted. Expectations (ASAM)
10. Service Renewal Continued Service Retention Predictive modeling Customer Segmentation Bundled option price lock guarantees VIP (Voice Internet Phone) Minimize “all services risk” Up sell unbundled satisfied customers Expectations (ASAM)
11. Separation Strategy for customers discontinuing service is not antagonistic and encourages customer to return void of resentment Voluntary Empathetic and invites customer to return if future circumstances change Involuntary Avoids permanent irreparable damage to the relationship even though terms of separation are under adverse circumstances
12. Program Management Essentials Segmented Customer “Swim lanes” identifiable Ability to return at strategic points in time Automated Human intervention on routine task minimized. Repeatable Easy to duplicate and perform over and over. Measurable Results can be quantified to be optimized Profitable Positive ROI
13. Effective Retention Marketing Essentials Analytics Accurate and actionable reporting Predictive Modeling Targeted Segmentation Employee Education Customer interaction self awareness Culture management Customer centric culture driven by Top management Management that “Walks the talk” Partnerships Strong External Strong Internal Program Management Incentives Success will be determined ultimately by how effectively relationships are managed!
