Just wanted to share some thoughts. While I am used to work for larger CPG/Insurance / Telco/ Banking/ Entertainment/ etc clients providing customer centric solutions, I recently had rather an interesting client. What this business was going through, from the marketing and overall CRM strategies point of view, I found rather bizarre. However on a second thought, it might be a typical situation for many medium and small businesses whose profits strictly depends on customers’ involvement and customers’ loyalty.
I’ll be brief, but let me know what you think.
No names. The company is a small ‘start up’ company, and it’s global, and it’s online. I don’t call it start up, because the business has been around for more than 15 years quite successfully. The business has a positive revenue growth every year, quite stable. However the company struggles to invite new customers, especially customers who is willing to be profitable customers. The company also have some competitors who literally eat their lunch.
I was invited to help with analytics. Primarily, customer centric analytics. I started with my usual routine investigation: do they have the right data, do they use it in the right way, what is it they already know about their customer, about their customers’ value and their needs.
What I fund was really puzzling. The company had massive amount of data stored and refreshed using multiple servers, and some of this data was even stored in the sufficient, from analytics stand point, way. The company invested in Google Analytics and some additional trendy software. But the company didn’t know what is the monthly customer churn rate. No clue. I asked “Do you know what’s the average tenure of the customer", and the answer was, ‘We never thought about it”. Huge investments in analytics tools, but those investments couldn’t answer simple questions: who are the most and least valuable customers, what’s their potential, what kind of products they are looking for, who are most likely to get on board and bring revenue, and who are whose customers who bring the highest revenue today but will leave tomorrow. And this is only a starting point.
And not only those questions were not answered, they were never actually asked. When I started my work, the company was already on their way of purchasing from yet another analytics vendor, hoping that maybe it’s finally the right one.
I will not go into details on what kind of solutions I created to get at least initial understanding of what’s going on. I want to know your opinion:
How often do you see something like this happening?