A key feature of the ongoing sales revolution is the rise of subscriptions. This emerged as a response to increasingly fickle customers and low costs of brand switching. Internet-based services led on this front, with Amazon Prime a clear leader having crossed a hundred million subscriptions globally. Across industries such as retail, insurance, telecom and automotive, sales personnel are relishing this opportunity. Marketers Though need to take care to not go all out for this model without rethinking strategy. Business model changes need to be incorporated alongside these marketing innovations. Unilever for instance went the merger path, by incorporating Dollar Shave Club’s mechanism back in 2016. Businesses are realizing the importance of retention, so focusing on that using the metric CLV (Customer Lifetime Value). This retention is best tracked using tools such as NPS (Net Promoter Score) or CSAT (Customer Satisfaction). Once data warehousing has been done, it is used to predict the amount a customer will spend on during the lifetime. Customer retention can best be choreographed keeping in mind the ease, cost and experience.

Source:https://www.strategy-business.com/article/Why-You-Need-to-Keep-Your-Customers-Close?gko=22a16

Uploaded Date:20 July 2018