Home Advanced Analytics Customer Loyalty: It all counts!!!


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.


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