Do you have Loyalty Data?

  • Do you know what makes a good customer?
    • Loyal, high value, cross buyers, up-traders
  • Do you know what makes a bad customer?
    • Fraud, poor payers, early cancellers, tyre kickers
  • Up grading usually depends on change
    • In life style, economy, social factors – what triggers it?
  • Do bad customers stay lost?
  • Good customers will give you information to help you manage them



Some Things You Have to Know :

  • To manage loyalty you have to know who your customers are
  • Whether they are worth holding onto
  • Whether it is feasible to hold on to them
  • Implies that you can sustain a customer relationship policy
    and . . .
  • That this is consistent over time and between products

Some Things You Have to Learn :

  • Customers will respond to loyalty schemes but they do not all work in the same way for all products
  • Not all customers respond in the same way
  • Not all customers require the same service
  • Segmentation by response and buying behavior is important – it can save a lot of money

Who are Good Customers?

  • Buy for value, not for price
  • Have good, long term value
  • Complain “reasonably”
    • and don’t talk too much!
  • Responsive to marketing communications
    • Respond, give information and enter into
      deeper (closer) marketing relationships

Who are the Bad Customers?

  • Broadly the opposite of the above +
  • Dishonest
  • Multi-sourcer
  • Hyper transacter
  • Rule breaker
  • Persistent
    • Complaints, queries,
      demands for service
    • Key Focus Areas

      • Find valuable (actual and potential) customers
      • Acquire valuable customers
      • Get valuable customers securely on board
      • Develop valuable customers
      • Keep valuable existing customers
      • Get to know actual and potential customers better
      • Develop value for valuable customers and . . . .
        arrange value chain to deliver it


      Hope the above information is valuable to you.




      Written by Shailendra Kumar
      Shailendra is a thought-leader and visionary in the cognitive and analytics space. With the sole motto of making money out of data, he has helped multiple organisations across the globe to generate incremental revenue or optimise cost using machine learning and advanced analytics techniques.


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