customer experience articles » Customer Profitability

Customer Profitability - A Balanced Scorecard Approach

Customer Passion LLC — Wed, 15 Nov 2006 17:19:21 +0000

The ability to measure profitability at the individual customer level allows companies to consider new customer profitability metrics such as “percentage of unprofitable customers,” or “dollars lost in unprofitable customer relationships.” Such customer profitability measures provide a valuable signal that satisfaction, retention, and growth in customer relationships are desirable only if these relationships contribute to [...]

Measuring Customer Value & Marketing Performance

Customer Passion LLC — Wed, 16 Aug 2006 14:35:47 +0000

Basic customer value metrics can be calculated without tracking results by individuals, but individual data allows more precise reporting of individual customer’s previous value, current status and predicted behaviors. From a metrics standpoint, it also allows companies to track customers as they move through the buying process and to estimate the long-term impact of marketing campaigns that may not generate an immediate response.

Filed under Improving Customer Profit Margins.

The customer is always right

Customer Passion LLC — Fri, 17 Feb 2006 15:59:55 +0000

Don’t ever underestimate the intelligence of the American consumer, because he or she is far smarter than we often give credit for. Garner a reputation for providing great customer satisfaction and you can charge a price premium that goes straight to the bottom line. Saddle yourself with a reputation for marginal customer satisfaction and the only way to build market share will be through discounts and other incentives that will wreak havoc on your bottom line. Filed under Improving Customer Satisfaction and Increasing Customer Profit Margins.

Customer Experience Management Study Shows Executives Do Not Love Customers

Customer Passion LLC — Thu, 16 Feb 2006 14:00:11 +0000

The annual global Customer Experience Management 2005 study indicates a decline in commitment to customers and a continuing poor understanding of the value of customers, and therefore the reasons to invest in customer relationships. A majority of companies fail to grasp financial aspects of their customer relationships and therefore fail to execute customer strategies effectively.

Filed under Improving Customer Experience, Increasing Customer Profit Margins, and Improving Customer Satisfaction.

Smells Like Brand Spirit

Customer Passion LLC — Fri, 21 Oct 2005 12:00:00 +0000

The idea of using a signature scent as a brand identifier has been slower to catch on outside the fashion industry (where certain retailers have long used fragrance as part of the sensory environment in their stores). But as it becomes ever more difficult to gain consumers' attention in an increasingly cluttered environment, more and more companies are looking to fragrance to help distinguish their brands from the competition.

Elasticity of Lifetime Value to Retention (24p PDF)

Customer Passion LLC — Mon, 10 Oct 2005 22:00:00 +0000

Reducing defections by 5% boosts profits 25% to 85%. The basic premise is that a relatively small increase in customer retention (loyalty) will drive relatively large increases in profits.

Private Screening with NetFlix CEO

Customer Passion LLC — Fri, 30 Sep 2005 11:14:21 +0000

Reed Hastings, founder and CEO of Netflix — and Fast Company’s Customers First Award winner — talked recently with Fast Company Associate Editor Jena McGregor about customer experience, the Amazon and Blockbuster threats, and what’s in store for the online DVD rental service company.

Profitable Player Runner-up: Best Buy

Customer Passion LLC — Thu, 29 Sep 2005 11:02:59 +0000

The board frowned when Brad Anderson approached it about spending $50 million to begin his “customer centricity” strategy, which would evolve into a companywide focus on developing employees into more customer-oriented leaders, and a transformation of Best Buy’s more than 650 stores. In the first quarter of this year, comparative sales increases for the almost 200 converted stores were twice those in traditional stores, and gross profit margins were higher, too. “The intellectual view underlying the strategy is that if you’re spending on the talents of the employees and [have] faith that that is valuable enough to the customer, you’ll get a return.”

High-Tech Runner-up: Talbots

Customer Passion LLC — Wed, 28 Sep 2005 12:03:11 +0000

Talbot’s innovative online reservation system fits the customer well. Shopping online for clothes could be a huge time saver for busy professional women - if only they matched the exact size and shape of the models wearing the goods. In February, classic-apparel retailer Talbots went high tech to solve that disconnect with Style Search, a feature that puts the inventories of its more than 1,000 stores at the fingertips of shoppers.

Profitable Player Runner-up: Virgin Atlantic

Customer Passion LLC — Wed, 28 Sep 2005 12:02:48 +0000

Virgin isn’t afraid to spend big on customer amenities, and the business is flying high. At a time when rival airlines are pulling pillows and charging passengers for stale turkey wraps, Virgin Atlantic has poured money into upgrading the customer experience in the air and on the ground. Luring more passengers, of course, helps bring more profits: Fiscal 2004 earnings were $120 million, more than triple the previous 10-month fiscal year’s.