CustomerIntelligence Report
Report ContentsLBM’s Customer Intelligence report is intended to provide you with asnapshot of your current customer base....
Better Acquisition – Profile AnalysisLBM Sector Description                                      UK Market   Customers    ...
Improved targeting and efficiency – Location Analysis                                         The ability to see where you...
Sell More to Customers – Product Analysis                       Customer       Product 1   Product 2       Product 3      ...
Improving Marketing ROI – Transactional Analysis                                                                          ...
Preventing Customer Loss – Churn Analysis  Customer Type                    Count                   %  Existing           ...
Why LBM ?LBM offer a wide range of lifecycle customer solutions, all designed to get thebest results and highest possible ...
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LBM Customer Intelligence Report

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LBM Customer Intelligence Report

  1. 1. CustomerIntelligence Report
  2. 2. Report ContentsLBM’s Customer Intelligence report is intended to provide you with asnapshot of your current customer base. This snapshot utilises six differentanalytical techniques to provide your business with a brief yet informativeoverview of your customers.The contents of the report are summarised belowProfile Page 3This section examines your relative penetration in different sectors and companiesto outline who your best acquisition targets are.Location Page 4This part of the report illustrates the location of your customers, and has manyapplications including sales force distribution, targeted regional marketing orcustomer service activity.Product Page 5Product analysis examines what your customers are buying from you. Insightgleamed from this will help your business target customers based on what they aremost likely to buy.Transactional Page 6This part examines how much, how recently and how often your customers spendwith you, and will help you identify and target your customers by these metrics.Attrition Page 7How many customers have you lost in the last twelve months ? This section will tellyou, allowing you to asses which sectors you need to target to prevent that churnfrom happening 2
  3. 3. Better Acquisition – Profile AnalysisLBM Sector Description UK Market Customers IndexAgriculture, Hunting and Forestry 131,436 1,208 178Hotels & Restaurants 288,111 2,460 166 The Index score is aWholesale & Retail 766,960 6,378 161 measure of theFishing 2,165 17 152 relative success inMining & Quarrying 4,212 25 115 each category.Manufacturing 394,215 2,267 112Construction 346,498 1,979 111 As an example, youTransport, Storage and Communication 190,094 1,076 110 would expect aElectricity, Gas and Water Supply 5,346 28 102 record in a categoryOther Community, Social and Personal Service Activities 472,858 2,048 84 with an Index scorePublic Admin and Defence; Compulsory Social Security 34,560 136 76 of 200 to be twice asEducation 129,336 343 51 receptive as those inReal Estate, Renting and Business Services 712,618 1,455 40 a category with anHealth & Social Work 257,259 394 30 Index score of 100Financial Intermediation 97,080 108 22Unknown 32,330 31 19Private Households Employing Staff 3,544 1 5Extra-Territorial Organisation and Bodies 693 0 0Total 3,869,315 19,954 Sector based analysis can be utilised for targeting prospect activity, and combined with other relevant variables to create an effective market segmentation. Turnover Band UK Market Customers Index <£50k 288,045 1,218 82 £50k - £100k 339,498 1,762 101 Predictive models can help to build a £100k - £250k 1,043,033 5,015 93 picture of your ideal customer. £250k - £500k 594,185 2,833 92 £500k - £1M 608,617 2,730 87 Turnover is just one of many £1M - £5M 577,249 3,829 129 different modelled business £5M - £10M 68,232 773 220 variables LBM can utilise to build £10M - £20M 30,148 463 298 £20M - £50M 18,857 353 363 that picture. £50M+ 10,248 236 447 Total 3,869,315 19,954 0 Employee Band UK Market Customers Index The smaller end of the market 1 to 5 2,545,437 11,333 86 typically contains the most 6 to 10 500,038 2,964 115 11 to 19 228,152 1,482 126 businesses, but is that your ideal 20 to 49 242,365 1,925 154 target market? LBM’s Profile 50 to 99 70,858 850 233 Analysis can give you the ability to 100 to 199 32,511 491 293 200+ 32,028 624 378 identify your best prospects. Unknown 217,926 285 25 Total 3,869,315 19,954 0 3
  4. 4. Improved targeting and efficiency – Location Analysis The ability to see where your customers are located enables your business to focus sales activity on the areas of highest need. Conversely, being able to illustrate where your prospects are located, allows your sales function to efficiently service that requirement.Maps can be adapted to notonly illustrate the locationof customers or prospects,but also to inform strategic sales activity by creating bespoke sales territories. Customised maps can be created that function from a UK wide level all the way down to Street level. 4
  5. 5. Sell More to Customers – Product Analysis Customer Product 1 Product 2 Product 3 Product 4 Product 5 Product 6 998180 0 1 1 1 1 1 998180 0 1 1 1 1 1 15998075 0 0 1 1 1 0 1714764 0 0 1 1 1 0 40762572 0 0 0 0 0 1 40615420 0 0 1 1 0 0 4195151 1 1 1 1 1 0 Customer baskets tell you what products are bought together. This can be used to score customers with the additional product they are most likely to buy. This can be used to optimise cross-sell and POP marketing.Totals Count Customers who have onlyNumber of records 5 bought one product can beNumber of baskets 10 targeted for cross-sell activity.Average number of items per basket 5 Customers who buy multiple products can be identified andTotal Number of products sold 15 targeted with specific offers.Number of different Products sold 7Product Combinations CountNo products 2,000Product 1; Product 2; Product 3 3,000 Analysing whatProduct 4; Product 5; Product 6; Product 7 50 products combinationsProduct 2; Product 9; Product 10 20 are bought togetherProduct 11; Product 18 5 allows your business toProduct 13; Product 4; Product 52 5 create tailored, productProduct 16; Product 1; Product 36; Product 19 5 driven marketing.Product 2; Product 6 5Product 99; Product 50 2Product 21; Product 76 1 5
  6. 6. Improving Marketing ROI – Transactional Analysis Recency Score 3,500 Target customers for reactivationNumber of Customers 3,000 activity or for that all important 2,500 repeat purchase. Using Recency, you 2,000 can identify customers who bought 1,500 from you last month, and also those 1,000 500 whose last purchase was 6, 9 or 12 - months ago. Least Recent 2 3 4 Most Recent Frequency Score 5,000 Having the ability to identify and Number of Customers 4,000 target customers based on how many times they have purchased from you, 3,000 enables your marketing to reflect 2,000 customer behaviour. Combine with 1,000 Recency for real targeting power. - Least Freq 2 3 4 Most Freq Monetary Score 2,600 Utilising Monetary segments, you can Number of Customers 2,550 identify and target customers based 2,500 on spend levels over time. Combine with Frequency for a true average 2,450 spend, and? Recency for absolute or 2,400 targeting power. Least Spend 2 3 4 Most Spend Recency Score Monetary Frequency Score Grand Total With combined RFM scores you Score Least Freq Most Freq can target customers based on Least Spend 2,769 776 3,545 how many times someone has Least Recent Most Spend 1,367 1,427 2,794 purchased within a certain period Least Spend 1,733 1,017 2,750 Most Recent of time, split by the amount of Most Spend 1,206 2,294 3,500 Total 7,075 5,514 12,589 money they spent. This allows your business to target customers for winback campaigns using Recency flags, welcome campaigns using Frequency flags, or development campaigns using Monetary scores. Combining RFM scores allows you to drill down further into your customer base to create a comprehensive and segmented view of customer behaviour 6
  7. 7. Preventing Customer Loss – Churn Analysis Customer Type Count % Existing 18,451 63.42% Identifying how many customers you have lost in the last 12 months allows Lapsed 797 2.74% your business to act on attrition with New 9,845 33.84% a pro-active marketing strategy Grand Total 29,093 100% designed to reduce churn, and increase retention. Churn Rate 2.90% Acquisition rate 34.79% Acquisition and churn of Customers Extra-Territorial Organisation and Bodies Private Households Employing StaffOther Community, Social and Personal Service Activities Health & Social Work Education Public Admin and Defence; Compulsory Social Security Real Estate, Renting and Business Services Financial Intermediation Transport, Storage and Communication Hotels & Restaurants Wholesale & Retail Construction Electricity, Gas and Water Supply Manufacturing Acquisition Mining & Quarrying Churn Fishing Agriculture, Hunting and Forestry 0% 10% 20% 30% 40% 50% By using tailored churn analysis and modelling, your business can identify which customers in which areas require your attention, allowing you to focus your customer targeting where it can be most effective. 7
  8. 8. Why LBM ?LBM offer a wide range of lifecycle customer solutions, all designed to get thebest results and highest possible return on investment. From CustomerIntelligence to bespoke contact centre campaigns, LBM’s approach toIntelligent Contact will ensure the success of your next marketing campaign.Customer Intelligence is an essential element in any successful organisation.Knowing more about your customers and potential customers gives yourorganisation the edge in what is becoming a more complex and confusingmarketplace.To find out more about LBM, email us at intelligentcontact@lbm.co.uk or visitwww.lbm.co.uk. If you would like to discuss the content of this report, pleasecontact the Analytics Team on 0161 616 0631. 8

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