copyright © 2010 all rights protected and reserved. - Events
copyright © 2010 all rights protected and reserved. - Events
copyright © 2010 all rights protected and reserved. - Events
- No tags were found...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
COPYRIGHT © <strong>2010</strong> ALL RIGHTS PROTECTED AND RESERVED. 1
Strategy. Execution. Results.<br />
Suppose you had two possible initiatives<br />
Customer<br />
Investment<br />
Initiative A<br />
Initiative B<br />
$10 $20<br />
But what if you only have one customer?<br />
Which of these initiatives should you choose?<br />
Why would your answer be different<br />
if you “only” had a million customers?<br />
COPYRIGHT © 2009. ALL RIGHTS PROTECTED AND RESERVED. 2<br />
COPYRIGHT © <strong>2010</strong> ALL RIGHTS PROTECTED AND RESERVED.
ROI <strong>and</strong> ROC – Both Measures Together<br />
Strategy. Execution. Results.<br />
Every possible treatment permutation<br />
Maximum ROI<br />
Highest value<br />
creation<br />
Increasing ROI <br />
ROI “hurdle rate”<br />
Maximum ROC<br />
Increasing ROC <br />
COPYRIGHT © 2009. ALL RIGHTS PROTECTED AND RESERVED. 3<br />
COPYRIGHT © <strong>2010</strong> ALL RIGHTS PROTECTED AND RESERVED.
Which Resource Will You Run Out of First?<br />
Strategy. Execution. Results.<br />
Evaluating two possible<br />
marketing actions<br />
Value of<br />
customer<br />
Investment<br />
required per<br />
customer<br />
Net new value<br />
created per<br />
customer<br />
ROI<br />
ROC<br />
Treatment 1 $100 $10 $30 300% 30%<br />
Treatment 2 $100 $40 $100 250% 100%<br />
If cash<br />
is scarce<br />
Cash available<br />
Customers<br />
affected<br />
Net new value<br />
created<br />
Treatment 1 $5,000,000 500,000 $15,000,000<br />
Treatment 2 $5,000,000 125,000 $12,500,000<br />
If customers<br />
are scarce<br />
Customers<br />
available<br />
Investment<br />
required<br />
Net new value<br />
created<br />
Treatment 1 300,000 $3,000,000 $9,000,000<br />
Treatment 2 300,000 $12,000,000 $30,000,000<br />
COPYRIGHT © 2009. ALL RIGHTS PROTECTED AND RESERVED. 4<br />
COPYRIGHT © <strong>2010</strong> ALL RIGHTS PROTECTED AND RESERVED.
COPYRIGHT © <strong>2010</strong> ALL RIGHTS PROTECTED AND RESERVED. 5
Benefits of CRM in financial services<br />
Strategy. Execution. Results.<br />
Among those<br />
rating customer<br />
service “good”<br />
% Likely to<br />
add one or<br />
more products<br />
in next 12 months<br />
% Likely to<br />
switch away one or<br />
more products in<br />
next 12 months<br />
LOW CRM 15%<br />
26%<br />
MEDIUM CRM 21% 10%<br />
HIGH CRM 31% 1%<br />
Source: PRG - Roper Starch Worldwide survey, Sep<br />
2000<br />
COPYRIGHT © 2009. ALL RIGHTS PROTECTED AND RESERVED. 6<br />
COPYRIGHT © <strong>2010</strong> ALL RIGHTS PROTECTED AND RESERVED.
ogers@1to1.com<br />
Peppers & Rogers Group<br />
Management consultants in<br />
customer strategy issues<br />
Magazines, newsletters,<br />
research white papers<br />
Offices <strong>and</strong> clients around the world<br />
1to1.com peppers<strong>and</strong>rogersgroup.com<br />
COPYRIGHT © 2009. ALL RIGHTS PROTECTED AND RESERVED. 7<br />
COPYRIGHT © <strong>2010</strong> ALL RIGHTS PROTECTED AND RESERVED.
Change language