Costumer Potential Maximization

New customer acquisition costs are exponentially increasing and with the growth in retail market
and entry of new players there is no plateauing in sight, at least in the near future. It is thus imperative that brands and retailers actively focus on and engage with existing customers to maximize revenue from them at a much lower cost than run after new customer acquisitions.This requires reflecting upon current strategies with a renewed focus and fresh mindset.

From decades we have been hearing about how CRM programs have helped marquee brands and retailers create a loyal set of customers, who contribute a high percentage to their sales and for whom internal analytics shows exemplary results – high repeat rate, a much higher average bill size and other metrics. However, let us for this time concentrate not on the comparative metrics of how much more valuable these customers are vis.a vis. others, but on the potential lifetime spend of the customer and how much he or she is spending with a single brand or retailer. The results will surprise us how a single brand or retailer, even within the category it operates in, captures a very small share of the overall customer spend.…