The great effect of CRM Business to Business
Let's talk about CRM in Business-to-Business (BtoB), with a new article by A. Hughes ( mailto: Dbmarkets@aol.com ) on a CRM strategy and on the calculation of the Lifetime Value (LTV) for a hypothetical, but realistic industrial company.
The first interesting item and 'the use of a website to reduce costs of sales - direct sales or through distributors - and personalize customer service, thus building loyalty.' The costs of the website (and other instruments such as the Integrated Account Management, and a communications program), are counted in the LTV. The other interesting element
and 'the customer segmentation by type of industry: the example shows that a high turnover, they can pay low LTV. Segmentation is also proposed more 'classic customers Platinum, Gold Lead up to the customers, who are losing money.
Finally, for those of you interested in most aspects of 'technical CRM, there' calculating the discount rate (used to calculate the LTV) in the BtoB, and 'more' complex must solito.Infatti take into account the terms of payment (more than 'close new customers, more' customer acquired deferred), the resulting risk factor (which tends to fall on the customers acquired) and possibly re-purchase multi-year cycle. Reference to Article for detailed explanation.
But, of course, the most 'interesting are the results: in this example, the company invests $ 7 million over three years to get 56 of the profits generated by activities' of CRM!
REFERENCE
Using Lifetime Value in Business to Business Marketing Strategy
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