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CHAPTER 2: CUSTOMER JOURNEY MANAGEMENT (a part of strategic CRM) - Coggle…
CHAPTER 2: CUSTOMER JOURNEY MANAGEMENT (a part of strategic CRM)
Customer journey: Awareness -> Consideration -> Purchase -> Retention -> Advocacy
3 core elements
Customer acquisition
Customer acquisition model (projected loyalty, potential profitability)
Performance indicators (KPIs)
The number of new customers
The cost of acquiring each new customer
The value of the new customer throughout the relationship
Customer retention
Decide on the best customers to retain
Customers who have strategic value to the company
High future CLV customers
High volume customers
Benchmark customers
Inspiration
Door openers
Recently acquired customers
Highly significant customers who are not commited to the company
4 types of customer engagement
Cognitive engagement
Affective engagement
Behavioral engagement
Social engagement
Measuring customer retention
Raw customer retention rate
Sales-adjusted rentention rate
Profit-adjusted retention rate
Customer development
Loyalty ladder: Suspect -> prospect -> first-time customer -> Repeat/ majority/ loyalty client -> Advocate
The conversion model
Customers
Commited -> Maintain and Engage
Entrenched customers (unlikely to switch)
Average customers (unlikely to switch in the short term)
Uncommited -> Find causes and solutions
Shallow customers (some are already considering switching)
Convertible customers (likely to switch)
Non-customers
Open non-customers -> depend on customer value, create strategies
Available non-customers
Ambivalent non-customers
Unavailable non-customers -> enhance communication, make offer more interesting
Weakly unavailable
Strongly unavailable
Strategies for managing relationships with unprofitable customers
Make offers become profitable by raising prices or cutting cost-to-serve
Reduce the cost-to-serve
Unbundle the offer
Respecify the product
Reorganize sales, marketing and service department