To know the clients’ interests based on their relationship with the company and predict their future behaviour
Strategic and operational decisions are made increasingly, based on high-value information and not on personal inner knowledge. Each day it is more important to have high-value information. Knowing our customers and their needs becomes a vital process for decision making and generating business benefits.
It is essential to know the client’s current needs and to anticipate future needs for early action to maximize benefits for the company.
Customer Life Cycle (CLC) describes the progress made by the client through the company. This form of analysis allows a client marketing strategy, focusing on the customer and not the product. The CLC is a unified view of current and future clients that integrates all levels of interaction between the customer and the company. It is a tool to support decision making to help improve the company’s business activities and maximize the value of the firm.
CLC is based on a Map of States that defines the set of states through which a customer can pass through and contemplates whichever change to make in trade policy and needs.
CLC calculates the probability of belonging of each client to each state, generating a customer signature. Based on a historical data set of the CLC it is possible to predict the evolution of the membership status of each client, which allows one to:
– Anticipate customer development and take preventive commercial actions.
– Understand the future needs of the customer and generate a portfolio of products related to their needs.
– Perform impact simulations and analyse the influence of commercial activity to align business strategy and enhance maximum benefit.
The predictive ability of CLC will allow the generation of two types of information in the future:
– Calculating the most likely route that each customer will take in the future.
– Optimum route calculation that every client should continue, to maximize business objectives.
CLC compares both routes, getting the points of diversion and temporary moment, offering the best commercial action to maximize customer over the ideal path.
CLC provides benefits in two areas of business; marketing and sales.
- Provides comprehensive and unified customer needs, to define business strategies and resource allocation by product line.
- Provides an ideal strategy for clients to maximize their value to the company.
- Helps to achieve strategic objectives:
- Providing an ideal business strategy plan.
- Generating ideal target audiences
Benefits of Marketing / Commercial
- Allows one to know customers and their current and future relationship with the company.
- Tool support resource allocation.
- Support the definition and generation of products.
- Allows direct commercial activity by prioritising customers.
- Improved trading results, directing actions towards customers with higher affinity.