Once we have calculated each customer’s lifetime value and determined the Best Customer group, the next course of action is to follow the customer-centricity practice and give these customers the Velvet Rope treatment. Through the Velvet Rope program, we look to give the Best Customer Ease, Access, and Exclusivity. By focusing on giving our Best Customers the Velvet Rope treatment of Ease, Access, and Exclusivity, VRM improves the retention and engagement of your brand.
What you can do for Engagement and Retention of Best Customers:
What do we do with the Rest and the Next?
Lookalike Spending: Our data analysis will create a Best Customer profile and VRM will look to nudge the remaining 80% of your customer base, which is the Rest, towards spending habits that mimic that of the Best Customer.
Refine Marketing practices and Efficient Acquisition: CLV will optimize your marketing practices/spends by showcasing which particular group to target and how to target them to acquire NEXT Best Customers. This helps in cutting costs by avoiding casting a wide marketing net on the entire customer base and ensuring that resources are used efficiently in effort to retain customers, develop existing ones, or acquire new ones. Firstly, by comparing the cost of acquisition with the value of acquisition, the company can determine how much it is willing/can spend acquiring a customer before the cost exceeds the customer’s lifetime value. Secondly, the company can acquire look-alike Best Customers so that it can start achieving a higher level of profits from the moment the customer makes their first purchase.
Quality Retention: VRM’s goal is to target the Best Customer group and double your profits which has a snowball effect on the businesses’ profitability. A 5% increase in retention of your customer leads to a 75% percent increase in profitability therefore catering to your Best Customer group not only doubles your profits, but retaining them leads to a further boost.
VRM’s powerful data analysis capabilities coupled with its expert CSM team is here to double your profits. By leveraging your data, targeting your best customers specifically, and nudging the rest towards similar behavior, we are here not to only increase your revenue but also decrease your CAC. Join this revolution and partner with Netcore’s VRM to garner accentuated profits and improved customer relations!
Rishabh Kishore works with Rajesh's team, and is helping in developing the VRM model. He did Economics and Legal Studies at the University of Wisconsin. When not working, he likes to play frisbee