CLM Measuring the Real Impact

886 views

Published on

Published in: Technology, Business, Education
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
886
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

CLM Measuring the Real Impact

  1. 1. CLM Activities Measuring the Real ImpactLuna Kawash
  2. 2. Objectives• Market Evolution•Customer Life Cycle; traditional Vs. CLM• Measuring CLM the impact
  3. 3. Objectives• Market Evolution•Customer Life Cycle; traditional Vs. CLM• Measuring CLM “the impact”
  4. 4. Market Evolution Introduction Early Growth Growth Maturity Penetration MarketEvolution 60-80% 15- 20% 5-10% • Basic voice • Basic voice • More advanced P&S • More segmented services services/ more & segmented products offerings products • Very high • Mobile phone users Market value • Medium to low value across all value • High valuehighlights subscribers subscribers join segments subscribers • 1-2 players • 1-2 players in the • Competition • Competition at in the market market increases highest
  5. 5. Customer Activity Analysis – Maturity Phase Introduction Early Growth Growth Maturity • Basic voice • Basic voice • More advanced P&S • More segmented services services/ more & segmented products offerings products • Very high • Mobile phone users Market value • Medium to low value across all value • High valuehighlights subscribers subscribers join segments subscribers • 1-2 players • 1-2 players in the • Competition • Competition at in the market market increases highest • Micro-segments are approached with customized offerings to meet their needs (BTLS and CLMs)Customer • Benefiting form advanced analytics to extract value & enhance usage activity analysis • Micro-segments are defined and analyzed • Advanced BI tools / professional analytical skills required from business users
  6. 6. Objectives• Market Evolution•Customer Life Cycle; traditional Vs. CLM• Measuring CLM the impact
  7. 7. Traditional Customer Lifecycle Entry Revenue Generation Drop / Churn Entry: • Customer acquisition, through channels and own shops (push and pull, landRevenue grab) • Minimum emphasis on collecting customer profiles and data (customer is only a number) Tenure (months) • Acquire then filter and retain approach Activity Cost L • Dealership compensation Success Rate on Retention H on line sales rather than value
  8. 8. Traditional Customer Lifecycle Entry Revenue Generation Drop / Churn Revenue Generation: • Revenue generation through using servicesRevenue • Customer interacts with different contact points ; contact centre, recharge platform, network, dropped calls, billing ..... (over all customer experience of the operator) Tenure (months) • Lack of Customer BI Activity Cost H Retention: • Loyalty programs are Success Rate on Retention L introduced at this stage • However, retaining customers who had a bad experience is expensive especially those with longer tenure •One Size fits all approach
  9. 9. Traditional Customer Lifecycle Entry Revenue Generation Drop / Churn Drop/Churn • A sudden change in customer behaviour is normally a dissatisfactionRevenue sign, or a bad experience at one of the channels • Customer with higher tenure tend to drop or churn if they were not appreciated Tenure (months) Retention: Activity Cost H • Timely detecting drop behavioural changes is a Success Rate on Retention L challenge • The retention offer is rather expensive especially if associated with bad experience.
  10. 10. Customer Lifecycle Management Entry Revenue Generation Drop / Entry: Churn -Through acquisition channel - Customer data and profile collected at minimal cost,Revenue alternative landline and physical address can be acquired for future win backs. - Line value incentives - Data profile incentives at dealership Tenure (months) L Activity Cost H Success Rate on Retention Retention effectiveness: -Retention efforts are least expensive and most effective a this stage in the CLT
  11. 11. Customer Lifecycle Management Entry Revenue Generation Drop / Revenue Generation: Churn - Creating an exit barrier through customized offers and engaging customers with interactive activities,Revenue - Standard treatment across all channels, priority on call centre, in shops - Customised loyalty program, in addition to encouraging customers to use different services - Prolong the life of the customer through a Tenure (months) consistent experience L across all channels Activity Cost - Enhance the value of H inelastic price points Success Rate on Retention - Depend on automated scoring models that detect Retention effectiveness: value opportunities in micro -Retention efforts are less expensive and more effective a this stage in segments the CLT -One size does not fit all
  12. 12. Customer Lifecycle Management Entry Revenue Generation Drop / Drop: Churn - Automated Scoring models for droppers (24hrs detection) - Droppers alerts across allRevenue contact channels - In non traditional approach customers reaching this stage should be significantly lower than traditional approach Tenure (months) L Activity Cost H Success Rate on Retention Retention effectiveness: -Retention efforts are most expensive and least effective a this stage in the CLT
  13. 13. CLM – Non traditional Objectives: Analysis -Prolong the lifetime of the customer - Increase the share of customer wallet Campaign Planning Measuring success?
  14. 14. Objectives• Market Evolution•Customer Life Cycle; traditional Vs. CLM• Measuring CLM the impact
  15. 15. CLM – Non traditional Mainly ATL ATL and Segmented BTL
  16. 16. CLM – Non traditional – measuring impact •The Green area is the increase in revenues and in life time due to adopting CLM •Calculating the green area by adopting the universal Control Group Methodology
  17. 17. Universal CG• Universe • Total Customer Base – Customers are exposed to all ATL and BTL activities• Universal Control Group: • Random Sample of the base reflecting a mirror image of the customer attributes, in addition to a monthly percentage of the new acquired customers. • Customers in UCG are not exposed to any BTL.• CLM impact: • A quarterly assessment of the impact of the overall BTL activities performance is measured by calculating total base LTV vs. UCG LTV, the increase in LTV in the overall BTL /CLM impact.
  18. 18. Thank You

×