Do you really know your customers? Find out in this short presentation. We take a TYPICAL retail e-commerce account. We show how under 10% of the customer base is worth 50% sales. Then we use Net Promoter to find the top 2.5% and market to them. Result: $65 PER EMAIL sent. This is how the CustomerGauge Revenue Accelerator system adds value. http://customergauge.com

1. DO YOU REALLY
KNOW YOUR TOP
CUSTOMERS?
© CustomerGauge / Directness BV
Revenue Accelerator

2. Learn about your best
customers with
CustomerGauge"
Revenue Accelerator
Adam Dorrell
18 September 2013
© CustomerGauge / Directness BV
Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

3. About a customer base: “Super-Pareto”
$
37,500 customers
49% revenue
$71m
351,800 customers
91%
=
51% revenue
$73m
Typical split for a B2C company:
Less than 10% Customers account
for HALF Total Revenue
© CustomerGauge / Directness BV

4. About a customer base: Revenue
9% customers
Average Spend*
49% revenue
HIGHER VALUE
CUSTOMERS
91% customers
(8x lesser value customers)
Average Spend
LESSER VALUE
CUSTOMERS
Based on typical b2c customer.
With 2 year Lifetime value of 400,000 customers, $150m
Average spend was normalised to $100 average (actually $323)
NPS 41 with Response 23%
© CustomerGauge / Directness BV
$483
$58

5. About a customer base: NPS
8% customers
49% revenue
HIGHER VALUE
CUSTOMERS
NPS 51
(1.3x or 20 points higher than lesser value customers)
Response
41%
(2x lesser value customers)
92% customers
LESSER VALUE
CUSTOMERS
NPS 39
Response
20%
Based on typical b2c customer.
With 2 year Lifetime value of 400,000 customers, $150m
Average spend was normalised to $100 average (actually $323)
NPS 41 with Response 23%
© CustomerGauge / Directness BV

6. NPS Detail by Detractor & Promoter
Detractor 0 - 8
HIGHER
VALUE
Top 8%
customers
49%
Revenue
Promoter 9 - 10
No response
Top Promoters:
2.5%
$11m
Ave $517
of customers =
$20m
Ave $517
14% revenue
$92m
Ave
$275
From NPS Responses
35%
Revenue Covered
LESSER
VALUE
Bottom 92%
customers
51%
Revenue
$8m
Ave $64
$10m
Ave $67
$Total for segment
Ave $Spend per customer
Customers that respond to NPS
account for 35% revenue (even though
response was 23%)
Promoters (9,10) alone are 21%
revenue
Top promoters are 14% of revenue but
only 2.5% of the customer base!
© CustomerGauge / Directness BV

7. Email Campaign: Revenue Accelerator
8% customers
Email sent to top
promoters
2.5%
of customers =
Dear Customer,
Thank you for saying you
would be likely to recommend
us.
10,000
Emails sent
Here is a gift from us for you:
$25 XYZ122333444
Existing customer
(upsell)
And something for 2 friends
so they can try us too.
Coupons sent by
email to approx
10,000 customers.
Typical campaign,
spring 2013
© CustomerGauge / Directness BV
$25 XYZ122333666
$25 XYZ122333999
New Customers
(referral)

8. Email Campaign: Results
TOTAL VALUE OF
CAMPAIGN
VALUE PER EMAIL
SENT
$645,000
$65
Existing customer (upsell) used 2113 coupons.
13.5% Redemption
(18% emails open and actioned),
Coupons sent by email
to approx 10,000
customers.
Typical campaign,
spring 2013
Based on Gross Sales
before discount).
Total sales based on
projected lifetime sales
$550 of new
customers)
© CustomerGauge / Directness BV
$220 Average Order
New Customers (referral)
331 New Acquired
$182,000 Value

9. CustomerGauge Life Cycle Report
• AUTOMATICALLY
Identifies your high
spending clients and their
NPS results.
• Based on Pareto 20/80
• Available in
CustomerGauge together
with EmailEngine
Marketing Tool
© CustomerGauge / Directness BV

10. THANK YOU "
INFO@CUSTOMERGAUGE
© CustomerGauge / Directness BV
Revenue Accelerator