Consumer Discretionary

Costumer Potential Maximization

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<p>New customer acquisition costs are exponentially increasing and with the growth in retail market<br />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.</p><p>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 &ndash; 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. Thus, there is much more potential in the customer than brands and retailers are able to seize and while it may be fantasy to capture a hundred percent, the paranoid pursuit to reach there is really what is required in today&rsquo;s hyper-competitive and hyper cluttered consumer markets. Through this whitepaper, Wazir in collaboration with Capillary Technologies looks at how brands and retailers can leverage smart technology to maximize the potential of their current customer base and achieve an ROI far superior to other initiatives taken by them. The whitepaper looks at how brands and retailers can engage with customers at the most appropriate time, through the right channel and with the right message/ offer, whereby the communication is of value to the customers and not another piece of marketing noise. Digital transformation is opening new frontiers and making possible what earlier was only in the realms of fantasy, and it is now available to all at costs that are miniscule when compared to returns.This Article elaborates on how brands and retailers can maximize customer potential by going through a digital transformation and also presents a self-evaluation framework, where business owners can self-analyze, where they are on this curve of &ldquo;Customer Potential Maximization&rdquo; and if they would want to ride the same and achieve superlative results.</p>
KR Expert - Baqar Iftikhar Naqvi