Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Customer retention - Commercial Excellence Forum

1,314 views

Published on

Customer retention: The shortcut to growth. Presented on 29 April 2016 at the Commercial Excellence Forum.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Customer retention - Commercial Excellence Forum

  1. 1. Commercial Excellence Forum Copenhagen, 29th April 2016 Customer retention: The shortcut to growth
  2. 2. 2 Agenda 1 Welcome and introduction to the topic of the day 3 Case from Stark: Keeping the right customers 2 Introduction to customer retention: The shortcut to growth 6 Wrap up (before networking and light lunch) 4 Case from Danske Bank 5 Case work: How to work with customer retention in your organization
  3. 3. 3 January 29th 2016 Key Account Management: Accelerate growth within your largest accounts April 29th, 2016 Customer Retention September 30th, 2016 Changing Behavior: How to change behavior in front-line through training, leadership and new kind of “touchpoints” November 18th, 2016 Commercialization and product launch: How to successfully commercialize and launch new products - and make them win in the marketplace Commercial Excellence Forum 2016 Planned meetings in 2016
  4. 4. 4 Next Commercial Excellence Forum is Friday the 30th of September The most important lever for organizational change: Changing behaviour • How to establish the right mix of competencies internally to orchestra changes in behavior (HR, Sales, Business Development, Marketing) • Learnings and experiences from large scale events • Insights on larger organizational roll-outs (globally and regionally) If you want to change an organization, you have to change the dialogue Ralph Stacey
  5. 5. 5 Agenda 1 Welcome and introduction to the topic of the day 3 Case from Stark: Keeping the right customers 2 Introduction to customer retention: The shortcut to growth 6 Wrap up (before networking and light lunch) 4 Case from Danske Bank 5 Case work: How to work with customer retention in your organization
  6. 6. ”It‘s 5 times more costly to acquire new customers, than to retain current ones” Harvard Business Review CUSTOMER RETENTION FACT #1
  7. 7. 7 In many commercial organisations, there is a tendency to focus primarily on sales when looking to grow revenue Solution: We need more focus on sales! Revenue last year Revenue this year Situation: We want to grow our revenue…
  8. 8. 8 Normally this would make it relevant to look at the different components of the sales growth equation Sales growth Winrate # Sales opportunities Avg. order size Sales cycle length
  9. 9. 9 Customers lost for good However additional sales is only half of the revenue growth equation Declining sales from existing customers Sale from new customers Up/cross sales Revenue last year Revenue this year * Implement’s Customer Retention Survey 2016 6,8% of annual revenue*
  10. 10. 10 Maybe we should focus our attention towards keeping customers happy and preventing them from churning CUSTOMER LIFECYCLE MODEL 1 3 2 PROSPECT LOST CUSTOMER CURRENT CUSTOMER ?
  11. 11. 11 Our experience tells that three things needs to be in place to succeed with retention Creating organizational awareness Understanding what drives churn Organizing for success
  12. 12. 12 Understanding the actual impact of customer churn is key to create the awareness and burning platform across the organization 47% 44% Knows the exact number of customers leaving Top management attention
  13. 13. 13 Identifying and tracking the drivers of customer churn is first step in sustaining the client base… 22% 6% 0% Understands the financial impact In depth driver understanding Identified leading indicators ≠ 47% Knows the exact number of customers leaving
  14. 14. 14 Top management must commit dedicated resources and proper incentives to ensure organisational buy-in 25% 16% 9% Designated role and responsibility Dedicated time in management team Retention incentives match sale incentives 44% Top management focus ≠
  15. 15. 15 The conclusion is therefore that our awareness is in place but that it is not always supported by a detailed understanding of churn drivers and aligned organisation Creating organizational awareness Understanding what drives churn Organizing for success
  16. 16. 16 Agenda 1 Welcome and introduction to the topic of the day 3 Case from Stark: Keeping the right customers 2 Introduction to customer retention: The shortcut to growth 6 Wrap up (before networking and light lunch) 4 Case from Danske Bank 5 Case work: How to work with customer retention in your organisation
  17. 17. 17 Agenda 1 Welcome and introduction to the topic of the day 3 Case from Stark: Keeping the right customers 2 Introduction to customer retention: The shortcut to growth 6 Wrap up (before networking and light lunch) 4 Case from Danske Bank 5 Case work: How to work with customer retention in your organization
  18. 18. 18 Agenda 1 Welcome and introduction to the topic of the day 3 Case from Stark: Keeping the right customers 2 Introduction to customer retention: The shortcut to growth 6 Wrap up (before networking and light lunch) 4 Case from Danske Bank 5 Case work: How to work with customer retention in your organization
  19. 19. 19 Discuss in your groups the following two questions Which specific initiatives have you managed to implement that have made a significant difference for your customer retention efforts? What did you do and why did it succeed? Please document your answers on the cardboards EXERCISE DESCRIPTION ILLUSTRATION Exercise: Identifying best practice examples
  20. 20. 20 Discuss in your groups the following two questions What are the critical barriers for succeeding with customer retention efforts? Why? Please document your answers on the cardboards EXERCISE DESCRIPTION ILLUSTRATION Exercise: Identifying Barriers to success
  21. 21. 21 Agenda 1 Welcome and introduction to the topic of the day 3 Case from Stark: Keeping the right customers 2 Introduction to customer retention: The shortcut to growth 6 Wrap up (before networking and light lunch) 4 Case from Danske Bank 5 Case work: How to work with customer retention in your organization
  22. 22. Change with Impact.

×