Most large and listed companies have large client databases and entire divisions dedicated to ensuring that they capture the maximum amount of revenue from their clients. At the end of the day – if the client does not do business with you, they will go next door to your competitor. The damage could thus become far larger than the missed revenue on that specific transaction as your competitor will try and make this client a repeat client for their business rather than yours.
To avoid such outcomes these companies spend a large amount of money and resources on modelling their clients; using all available data on past purchases, preferences and whatever else the clients have provided to them over the course of their commercial relationship.
Smaller and mid-sized companies often do not have sophisticated models and database set-ups to work with this, but they will use a similar approach, nonetheless. If you are selling hot soup on a market, it will take you not more than a few months to work out which days you’ll need to bring more and on which days you might as well stay at home. Where they fall short lies in the interaction with their actual customers! Even though they might have a very good and personal bond with the people buying their products they don’t have the data on their clients to understand what makes them their client. Why are they not shopping elsewhere? Is it the location? Are you offering something that falls right in the gap left by your competitors? Is your product so superior that given the price point there truly is no alternative?
If such an analysis would be performed the results will be mixed; a decent product-price combination, a good location, honest service and having some eye-catching visual advertising all play a role to some degree. Using data this can however be moved to the next level. What if we would change one of these variables … what would be the result then? Could the price be increased and improve our operational results? Or is it better to lower the price and more than make up for the loss of margin by the increase in volume? This “tinkering” is something that can generate vastly improved operational results but is heavily relying on the availability of data and the ability to maintain an updated client database.
Ada Beta can help you in setting up the right structure for client acquisition and retention. We have specific algorithms for online marketing as well as the required experience for all levels of building a loyalty programme. Client Management is a key to the success of almost all business and we would love to become your partner!