FROM STRATEGY TO MENU
So far we have presented two models in this chapter. These two models are essential concepts of this book since they can help you to break down your objectives into the four core value disciplines within sales and CRM and help you make a generic CRM strategy.
As shown in Exhibit 2.7, the four value disciplines that also will be presented individually through Chapters 3 to 7 are:
1. Prioritizing your customers. Value-based segmentation tells you which customers are valuable and which are less valuable. This allows you to focus on those customers who are of value to your business. You should also focus on making unprofitable customers profitable, which is the equivalent of lowering the horizontal axis. Doing so has the effect of getting the whale a larger body of earnings.
2. Getting new customers. Customer analytics can tell you how to get more customers from the same budget and tell you the expected lifetime value of customers acquired through different channels and campaigns.
3. Growing existing customers. Customer analytics can tell you who to sell what to and when, regardless of whether it is about immediately cross-selling, customer development over time, or wallet share optimization. (“Wallet share” is the percentage of a customer’s total spending in your field of business that is awarded ...