Calculate your customers’ lifetime value and cost of lost customers; determine a strategy to focus on the right customers for highest profits

Attendees: executives and managers in marketing, sales, customer service, finance

Duration: 3 hours, pending customized exercises and the organization’s specific needs

Overview:

• Allocate budget and manpower for the highest return on investment by identifying your customers who fit the 20-80-30 rule components: 20% of your customers generate 80% of your company’s profits, half of which are lost serving the bottom 30% of unprofitable customers
• Calculate the cumulative revenues, costs, and profits of your customer segments
• Calculate cost of acquiring customers and cost of lost customers
• Establish guidance for marketing, sales, and customer service decisions
• Train front-line employees to appreciate the lifetime value of profitable customers
• Determine methods for migrating low-profit customers to high-profit levels
• Identify methods for transitioning unprofitable customers to competitors’ customers

Approach:  

• Begin with worksheets for calculations, customer segmentation, and decision criteria
• Learn best known methods as well as foundational principles behind this methodology
• Use case studies to contrast successful and unsuccessful planning and execution
• Set up guidance, communications, and methods for immediate implementation

Deliverables:  

• Worksheet templates for calculations, segmentation, guidance, and training
• Customized procedures for development and implementation of each phase of the methodology
• Tips for communication, leadership, and change management

Measurable Results: compare baseline and ongoing data for revenue, cost, profit, customer acquisition, customer retention, lost sales, employee satisfaction, customer satisfaction, cross-sell, up-sell, sales cycle time, customer service cycle time, RMAs

About the Instructor: Lynn Hunsaker founded ClearAction to help organizations “Act

on clear insights!” about their customers. A veteran high tech marketer and university instructor, Lynn is an AMA Certified Professional Marketer, ASQ Certified Quality Manager, and Qualified MBTI® Practitioner. She earned her MBA with concentrations in international marketing and finance from Vanderbilt University.

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