In today's challenging economy, marketers are being tested like never before. Customers are more informed, more demanding, and less willing to release their cash. The competition is using technology in innovative ways to compete for customers. Despite these challenges, senior leaders and stakeholders want results quickly. So when marketers identify a qualified lead, it stands to reason that they should do their level best to maximize profitability. Unfortunately, the majority of them are not.
Three key obstacles stand in the way of marketers garnering good insights into retention rates and customer profitability: (1) a lack of real-time data and analytics that capture insights from multiple customer touch points; (2) information being selectively gathered, inaccurate, or incomplete; and (3) data being siloed and its use restricted across organizations. As a result of these obstacles, critical business decisions are made based on conjecture and not on empirical data and intelligence.
This paper explores the dilemma of looking into retention rates and customer profitability and offers a solution to this dilemma. You'll also learn how to increase customer loyalty and retention while increasing revenue.
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In today's challenging economy, overwhelming 76 percent of seniormarketers are being tested like never marketers stated that they are notbefore. Customers are more informed, realizing the full revenue potential ofmore demanding, and less willing to their customers. The report revealsrelease their cash. The competition is some alarming insight into why this isusing technology in innovative ways to happening: Less than half, only 46.5compete for customers. And, despite percent, of senior marketers say theythese challenges, senior leaders and have good insights into retention ratesstakeholders want results quickly. So and customer profitability.when marketers identify a qualifiedlead, it stands to reason that they should With the latest technologicaldo their level best to maximize advancements in CRM, why are soprofitability. Unfortunately, the majority many marketers still struggling toof them are not. garner good insights? The CMO studymaintains that three key obstacles standAccording to the December 2008 study, in the way: (1) a lack of real-time data"Routes to Revenue," by the Chief and analytics that capture insights fromMarketing Officer Council, an multiple customer touch points; (2)October 2009 Sponsored Content
information being selectively gathered, challenging economy and the high company to truly understand theinaccurate, or incomplete; and (3) data costs of sporting events, more customer experience and select criticalbeing siloed and its use restricted across consumers are opting for less-expensive areas of improvement, pinpointingorganizations. As a result of these home entertainment. This is a plus for what needs fixing.obstacles, critical business decisions are media and entertainment companies,made based on conjecture and not on but they must capitalize now. And, The next step is selecting an advancedempirical data and intelligence. they must make their decisions based CRM system that enables anon what is known, not what is organization to run campaigns that"The business of customer relationship surmised, Compton advises. With the align with its customers' preferences,management and the business of right system and processes in place tightly integrate marketing across allmarketing have been somewhat these companies can, for example, send inbound and outbound channels,notorious for people making decisions their customers special offers for increase sales productivity by providingbased on what they thinkthe market is birthdays and holidays; packages for customer insight, manage marketinggoing to do or what they feelwill football and baseball seasons; and and sales resources more efficiently, andhappen, instead of competing on telephone, Internet, and TV service turn contact centers into profit centers.intelligence, instead of competing on plans for new homeowners. Implementing the right solution willanalytics," says Tony Compton, director make the business of customerof CRM product marketing at Infor. But before purchasing a CRM system, relationship management easier andCompton recommends that a company provide an economic value andCompanies can no longer afford to run examine its existing customer competitive edge that every enterprise istheir businesses this way. Marketers interaction strategies. He suggests searching for.must be able to understand their walking a mile in customers' shoes bycustomers' needs and react to changing navigating through your company's THE CONNECTED ENTERPRISEmarket forces. Fortunately, CRM Web site, testing your toll-free support Bell Canada understands this well. Insolutions exist to help organizations line, walking into one of your stores or 2000, the company needed to makeimprove their understanding of branch locations and purchasing some changes to the way it interactedcustomers and markets and realize the something or making a transaction, and with customers. The company movedfull revenue potential of their emailing the support department with a quickly to improve its customercustomers. With the right systems and request. "You may be surprised how interaction strategy, enhance theprocesses in place, companies can many companies don't do that, don't interaction among its CRM applications,leverage real-time customer information put themselves in the shoes of the and maximize the ... [download for more]
