The sales department
is spread too thin
Problem:
New customer acquisition
Customer Retention
Customer Expansion
We worked with the sales department of a publicly traded cloud-based business communications provider to identify segments of customers who close faster. The goal? To allow sales leaders to make better time-management decisions by weighing slower/larger sales vs. faster/smaller sales. The increased volume of smaller/faster sales through effective targeting ultimately led to the speedier acquisition of new customers.
Evaluate customer segments for dollar amount and length of time to close to increase sales velocity
Solution:
New customer acquisition
Customer Retention
Customer Expansion
New customer acquisition
Customer Retention
Customer Expansion
New customer acquisition
The marketing department doesn’t know who or where the most valuable customers are
Problem:
New customer acquisition
Customer Retention
Customer Expansion
We worked with an online genealogy platform to identify geographies and customer segments that had a notably higher LTV/CAC than others—the customers that were the most valuable to the company over the long term. Once identified, we found that the company wasn’t marketing to these customers effectively because the marketing department didn’t know where these users were located. They were able to course-correct with the right information in hand.
Similarly, for a video telecommunications company we identified geographies with highest LTV/CAC, including Sweden. But the company lacked Swedish speakers on their sales team. By hiring more, they were able to capitalize on their highest-quality customers.
Identify customer segments with the highest LTV/CAC to look for geographic clusters
Solution:
New customer acquisition
Customer Retention
Customer Expansion
Need short-term opportunities to increase revenue from existing customers
Problem:
New customer acquisition
Customer Retention
Customer Expansion
With aggressive growth plans, a $1 billion private equity-backed software company needed to understand its best short-term opportunities to increase revenue from current customers. In just a few weeks, we implemented a customer scoring algorithm that identified $71 million churn-risk segments. This allowed the company to move quickly to mitigate and revise models and investment strategies.
Identify cohorts with the highest risk of churn for more accurate revenue forecasting
Solution:
New customer acquisition
Customer Retention
Customer Expansion
Wasted resources on trying to retain all customers—instead of the right customers
Problem:
New customer acquisition
Customer Retention
Customer Expansion
A recent survey showed that the more products and customer touchpoints a company provides, the lower the churn and the greater likelihood of cross-sell opportunities.
The findings demonstrate the value in focusing on acquiring high value customers instead of focusing on retaining lowest value customers. The key is to be deliberate about your growth mix—if you pick lower cost and higher volume segments to chase, understand the anticipated effect on retention rates and how it impacts the need for increased acquisition in the future.
We acknowledge there may be strategic imperatives that require acquiring low-value customers. But our general recommendation, in line with Wharton Professor Peter Fader’s “Fader Effect,” is that you don’t have to focus on retention if you focus on acquiring the customers with the highest probability of staying. And in order to focus on acquiring the customers with the greatest retention profile, you need analytics-based segmentation.
Be deliberate about how much customer churn you can accept and how much to mitigate
Solution:
New customer acquisition
Customer Retention
Customer Expansion
Improve ability to surface the right product to the right customer at the right time
Problem:
New customer acquisition
Customer Retention
Customer Expansion
We partnered with a rapidly growing, privately held software company and used our proprietary platform to analyze data and develop precise, quantifiable answers to questions related to the best product to surface to each customer. We used a credit score-like approach to value customers, analyzing 30 million combinations of customer and product data points to produce 7.74 million scores for 70,000 customers. This included 96 cross-selling scores per customer. In just a few weeks, we identified more than $1 billion in total value.
Analyze combinations of product and customer interaction data to reveal the most probable cross- and up-selling opportunities
Solution:
New customer acquisition
Customer Retention
Customer Expansion
Departments use different information to make decisions
Problem:
New customer acquisition
Customer Retention
Customer Expansion
A large enterprise management cloud software company needed to reorganize their customer success team and better align the departments that had a hand in shaping the customer journey. Working across sales and marketing we allowed the client to re-run new segmentations daily as they continued to refine the variables, weights, and components of the algorithm.
Align sales, marketing, and customer success departments with daily updated algorithmic and segmentation analysis.
Solution:
New customer acquisition
Customer Retention
Customer Expansion