truth-customer.leadership - Customer Q&A's

Q: what is Customer Centricity?

A: The organisation ensures that customer thinking (driven either by data &/or experience) drives all business decisions and strategy .

Wikipedia says:-

“ Customer centricity refers to the orientation of a company to the needs and behaviours of its customers, rather than internal drivers (such as the quest for short term profit).
Unfortunately, most companies are not practitioners of "customer-centricity," although they pay lip-service to the concept. ”

Q: what is CRM?

A: Customer Relationship Management

Wikipedia says:-

"Customer relationship management (CRM) is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with customers, clients and sales prospects. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. "

Q: what is Customer Segmentation?

A: Groupings of customers according to behavioural characteristics, e.g. what they buy or what they spend or how frequently they spend, etc.

Wikipedia says:-

"Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations sharing with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function.. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage."

Q: what is Predictive modelling?

A: Use of customer data to predict how other customers with similar profiles will respond e.g. to a direct marketing campaign

Wikipedia says:-

"Predictive modelling is the process by which a model is created or chosen to try to best predict the probability of an outcome. In many cases the model is chosen on the basis of detection theory to try to guess the probability of an outcome given a set amount of input data "

Q: WHAT IS R, F, V

A: Recency, Frequency & Value segmentation

Q: what is Lifestyle Segmentation?

A: Customers are grouped together depending on their buying behaviours and motivations for buying

Q: what is Lifestage?

A: Customers are at different lifestages, eg teenagers, young mums, career focused, mature families, retirees

Q: what is Lifecycle / Customer Lifecycle management (CLM)?

A: Understand your customer through their entire lifecycle with you – when they join your organisation, when they should buy more from you, when they should buy new things from you

Wikipedia says:-

"The purpose of the customer life cycle is to define and communicate the stages through which a customer progresses when considering, purchasing and using products, and the associated business processes a company uses to move the customer through the customer life cycle"

Q: what is Customer Strategy?

A: Deep strategic understanding of your customer, internally and in their market place

Q: what is Direct Marketing?

A: Communicating to your customers directly through one to one communications e.g. mailings, email, SMS

Wikipedia says:-

" The first is that it sends its message directly to consumers, without the use of intervening commercial communication media. The second characteristic is the core principle of successful Advertising driving a specific "call-to-action." This aspect of direct marketing involves an emphasis on trackable, measurable, positive responses from consumers "

Q: what is A Loyalty programme?

A: A programme to reward & recognise customers and to engage customers in an ongoing relationship with your company.

Wikipedia says:-

" Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially of benefit to the firm "

Q: what is Customer Attrition?

A: Turnover of customers who shop with you

Wikipedia says:-

Customer attrition, also known as customer churn, customer turnover, or customer defection, is a business term used to describe loss of clients or customers.

Q: what is Churn?

A: Turnover of customers who shop with you

Wikipedia says:-

" customer churn, customer turnover, or customer defection, is a business term used to describe loss of clients or customers. "

Q: what is Customer Plan?

A: A cross-organisational plan where customer activity drives higher performance due to the use of customer intelligence

Q: what is Retention?

A: Keeping your customers shopping

Wikipedia says:-

" Customer Retention is the activity that a selling organisation undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organisation has with a customer and continues throughout the entire lifetime of a relationship "

Q: what is Acquisition?

A: Attracting new customers to buy from you or join your loyalty programme

Wikipedia says:-

" Customer acquisition management is a term used to describe the methodologies and systems to manage customer prospects and inquiries, generally generated by a variety of marketing techniques "

Q: what is Upsell?

A: Encourage your customers to buy more of what they already buy from you

Wikipedia says:-

" Upselling is a sales technique whereby a saleperson induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale. Upselling usually involves marketing more profitable services or products, but upselling can also be simply exposing the customer to other options he or she may not have considered previously "

Q: what is Cross Sell?

A: Encourage customers to buy items from you other than what they already buy from you

Wikipedia says:-

" Selling an additional product or service to an existing customer "

Q: what is Above the line?

A: Marketing communications targeted at a group of customers through traditional media like TV, press, radio

Wikipedia says:-

" While ATL promotions are tailored for a mass audience, BTL promotions are targeted at individuals according to their needs or preferences. While ATL promotions can establish brand identity, BTL can actually lead to a sale. ATL promotions are also difficult to measure well, while BTL promotions are highly measurable, giving marketers valuable insights into their return-on-investment. "

Q: what is Below the line?

A: Marketing communications targeted on a one on one, personalised basis usually via direct marketing

Wikipedia says:-

Q: what is Through the line?

A: A holistic campaign which communicates through traditional above the line media, online and direct marketing

Wikipedia says:-

“Through the line" refers to an advertising strategy involving both above and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the "line".

Q: what is ROI?

A: Return on investment – one of the main measurables on direct marketing

Wikipedia says:-

" Return on Investment or Rate of return, used to evaluate the efficiency of an investment in finance and economics "

Q: what is Incremental sales?

A: Additional sales generated as a direct response from the marketing campaign being analysed

Q: what is Incremental profit?

A: Additional profit generated from the incremental sales due to a particular marketing campaign

Q: what is Geodemographic segmentation?

A: Analysis which groups customers according to location based criteria

Wikipedia says:-"

" Geodemographic segmentation is based on two simple principles: 1. People who live in the same neighborhood are more likely to have similar characteristics than are two people chosen at random.; 2. Neighborhoods can be categorized in terms of the characteristics of the population which they contain "

Q: what ARE CUSTOMER Insights?

A: Analysis from customer data which generates customer intelligence and acute understanding

Wikipedia says:-

" Insight : 1. the power of acute observation and deduction, penetration, discernment, perception called intellection or noesis; 2. an understanding based on identification of relationships and behaviors within a model, context, or scenario "


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