Tuesday, May 08, 2018

How to Use Data to Reveal Your Brightest Star Customers

Obtained From: Marketing Profs

Just as the universe comprises a wide variety of types of stars, so does your customer base. And like the universe, where some stars shine brighter, some of your customers are better than others.
Now imagine the power of being able to separate your worst customers from your brightest star customers—and find more like your brightest ones!
Doing so entails evaluating and understanding what it takes to attract, acquire, keep, and grow your new and existing customers' value. And to find, keep, and grow the value of your customers requires a customer-centric culture and approach in your marketing.
Dr. Peter Fader, author of Customer Centricity, defines customer-centric marketing as looking at a customer's lifetime value and focusing your marketing efforts on the high-value customer segment in order to drive profits. The suggestion here is that by understanding who your current high value customers are, you are better positioned to acquire more customers like them.
That idea of customer-centric marketing entails placing the customer at the center of your marketing strategy so you can create and extract customer value. Gautam Mahajan, president of the Customer Value Foundation, defines customer value as "the perception of what a product or service is worth to a Customer versus the possible alternatives. Worth means whether the Customer feels s/he...got benefits and services over what s/he paid."

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