2. Webster defines
as a natural & gradual reduction
In business, Attrition is defined as a loss of customer, revenue & profit
To grow 15% this year, you need to first
cover your attrition rate
3. Profit Risk Factor:
To acquire 20% new customers this year,
you need to first cover your attrition rate
On average, financial institutions lose 15% of
their clients each year
Your goal in reality becomes 35%
10. Capitalize on data you have to better understand
relationship profitability and engagement practices
11. A loyal customer is an
advocate who actively
endorses or recommends
your product
Do you know who are they?
12. 2. Be engaged & Cross-sell
Successful cross-selling or upselling is to
focus your efforts on meeting the
customer’s needs, rather than simply
pushing more products & services
Artwork by Hugh MacLeod
13. How can companies identify needs that customers themselves may not recognize?
VOICE OF THE CUSTOMER
“Companies can identify needs that customers
themselves may not recognize through empathic
design.” (Harvard Business Review)
Empathic design means to understand a
customers need thru observation. Watching
customers use products or services in their
own environment, in the context of normal,
everyday routines.
It is necessary to both listen to what customers say they do and observe them in their natural
environment to uncover their true behaviors & processes.
14. If you overload customers with too many
crossselling suggestions, you may lose the entire opportunity.
15. THE CUSTOMER
Understand their circumstances & needs
Be fair to their needs and not yours
Customers don’t care about policies, they
want reasonableness
Never say “NO”
16. Did you know! Regular service/product bundles don’t work anymore!
Lifestyle Solution Bundling
It requires to imagine the client/consumer not as a target with a particular
demographic profile, but as an individual with stresses, problems, needs &
desires, some of which they might not be aware of
17. Listen to what your
are saying
about you online
Listen and identify your
Connect via social media &
strategize to
• Be engaged
• Be interesting
• Be Authentic & Transparent
• Be committed
18. 3. Reaching out
Your marketing goal is not to attract
buyers, but to convert buyers into
loyalists, into enthusiasts and evangelists
19. Integrate a Relationship Expansion Plan
TO INCREASE STICKINESS
Build several relationships with the client’s organization. Expand
& deepen your existing relationship with key individuals who
play different roles
Hello
yes
Hi
20. Do this first by connecting to your client’s agenda and be agile in talking
about their business issues – and then build trust in your ability to help
address them
22. 4. Track & Monitor
Everything
must
be
tracked
and
monitored
to
ensure
a
successful
relationship with top tier clients
23.
24. Monitor & track your current
churn/attrition rate is.
Companies with higher retention rate grow
faster. Knowing how many are defecting &
why is the reflection of knowing how many are
staying & why.
25. Customer Retention Equity
Monitor your CUSTOMER RETENTION
EQUITY, which is defined as the total of
the discounted lifetime value of all the
firm’s customers
In other words, a firm is only as
good as its customers think it will
be the next time they will do
business with that firm.
Keeping one existing
customer is 5 to 7 times
more profitable than
attracting one new one.
Lifetime Value
26. SHARE OF WALLET & POTENTIAL WALLET VALUE
Customer wallet is defined as the total amount this customer can spend in a specific
product category. The share of wallet then is how much they spend with a particular seller.
By understanding the total wallet & share of wallet you can identify which customers
are the most “loyal” & which customer have the greatest growth potential
27. Measure & monitor CUSTOMER TRUST
Trust is build through frequent interactions
How are you measuring customer
trust? And when was the last time
you mapped all your customer touch
points & the frequency of interaction
per touch point?
The most important factor in building
trust is “Quality products & services.”
28. Track CUSTOMER LOYALTY
Behavior is more important than attitude. Customers show their loyalty by the direction of their feet.
Are your customers staying or defecting? Do they serve as advocates ? Do they
proactively endorse your company?
What customer
behavior can you
measure to
DEMONSTRATE the
company is improving
customer loyalty?