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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
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© CustomerGauge / Directness BV
DO YOU REALLY KNOW YOUR TOP CUSTOMERS?
Revenue Accelerator
© CustomerGauge / Directness BV Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.
Learn about your best customers with CustomerGauge"Revenue Accelerator Adam Dorrell 18 September 2013
© CustomerGauge / Directness BV
About a customer base: “Super-Pareto”
37,500 customers
351,800 customers 91%
49% revenue $71m
51% revenue $73m
=
Typical split for a B2C company:
Less than 10% Customers account for HALF Total Revenue
$
© CustomerGauge / Directness BV
49% revenue HIGHER VALUE CUSTOMERS
LESSER VALUE CUSTOMERS
About a customer base: Revenue
9% customers
91% customers
Average Spend*
$483 (8x lesser value customers)
Average Spend
$58
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
49% revenue HIGHER VALUE CUSTOMERS
LESSER VALUE CUSTOMERS
About a customer base: NPS
8% customers
92% customers
NPS 51 (1.3x or 20 points higher than lesser value customers)
Response
41% (2x 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
NPS Detail by Detractor & Promoter
$11m Ave $517
$8m Ave $64
$20m Ave $517
$10m Ave $67
$92m Ave $275
$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!
Detractor 0 - 8 Promoter 9 - 10 No response
Top Promoters: 2.5% of customers = 14% revenue
HIGHER VALUE Top 8% customers 49% Revenue
LESSER VALUE Bottom 92% customers 51% Revenue
From NPS Responses
35% Revenue Covered
© CustomerGauge / Directness BV
Email Campaign: Revenue Accelerator
8% customers
Dear Customer, Thank you for saying you would be likely to recommend us. Here is a gift from us for you: And something for 2 friends so they can try us too.
$25 XYZ122333444
$25 XYZ122333666
$25 XYZ122333999
Email sent to top promoters 2.5% of customers =
10,000 Emails sent
Existing customer (upsell)
New Customers (referral)
Coupons sent by email to approx 10,000 customers. Typical campaign, spring 2013
© CustomerGauge / Directness BV
Email Campaign: Results
Existing customer (upsell) used 2113 coupons.
13.5% Redemption (18% emails open and actioned),
$220 Average Order
New Customers (referral)
331 New Acquired $182,000 Value
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)
TOTAL VALUE OF CAMPAIGN
$645,000 VALUE PER EMAIL
SENT
$65
© CustomerGauge / Directness BV
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
THANK YOU "INFO@CUSTOMERGAUGE
Revenue Accelerator
