Upload
mcoronna
View
1.164
Download
1
Embed Size (px)
DESCRIPTION
This presentation shows how a healthy, end-to-end mobile customer experiences improves customer lifetime value: both revenues and profits.
Citation preview
Increasing Customer Lifetime Value Through a Comprehensive Mobile Engagement Model-or- Better Customer Experiences Make Better Businesses
Mark CoronnaManaging Director, Marks & Crown LLC
MARK Coronna Marks & Crown LLC
Two Concepts: Powerful when connected…
• Customer lifetime value• Unique, high-value mobile
experiences
Session Goals: (1)Convince you to deeply understand what
your mobile customers are trying to achieve
(2)Translate that into unique mobile offerings that drive higher revenues and profits
MARK Coronna Marks & Crown LLC
A quick review of Customer Lifetime Value (CLV)
CLV= The present value of the future cash flows attributed to each customer relationship
CLV = Average Monthly Revenue per Customer x Gross Margin
per CustomerMonthly Churn Rate
MARK Coronna Marks & Crown LLC
Key drivers of a healthy Customer Lifetime Value
Revenue -Transaction size- Upsell add-ons- Cross-sell related products- Purchase frequency-Value from referrals
Cost - Product/service margin- Customer acquisition cost- Customer servicing cost- Customer retention
Base Profit
Profit from Increased Purchases
Profit from Price Premiums
Profit from Reduced Operating Costs
Profit from Referrals
MARK Coronna Marks & Crown LLC
What’s a healthy end-to-end mobile experience?Is it this?
Offers and Promotions Purchase Decision Payment
Customer Value and Satisfaction Rating:
MARK Coronna Marks & Crown LLC
A healthier experience looks more like this…
Locator Services
Info Search
Product & Price
Compare
Offers and Promo’s
Purchase Decision Payment
Customer Comms
and Account Servicing
Loyalty Programs, Rebates, Future Offers
Warranty &
Relnship Mgmt
Customer Value and Satisfaction Rating:
MARK Coronna Marks & Crown LLC
You have to “go deep” to really understand what your customers
are trying to accomplish…
• Review payment options• Check account balances• Select payment option• Self-service ordering• Share purchase decision
Sub-Processes
• Do I have funds available?• What purchase options are
there?• What purchase option is best for
me?• What happens if I wait?• Should I order the product
myself?
Consumer Decisions
• Payment options• Check balances• Funds transfer support• Recommend best options• Self-service ordering
application• Share purchase decision with
others
Key Capabilities
Payment
MARK Coronna Marks & Crown LLC
It’ pretty easy miss what customers’ want…
Let’s put these into order by customer preference:___ Want offers and promotions___ Want assistance locating stores___ Want to purchase___ Want interactive images
It’s easy to get the list right, but the value order wrong…Shimmer Floor Wax
MARK Coronna Marks & Crown LLC
Delivery of unique customer experiences requires more than a
good app…
MARK Coronna Marks & Crown LLC
Customer experiences must be supported by data from legacy
applications and refined processes
Strategic Imperatives
End-to-End Customer Experience Model
Customer Lifetime Value Model
Business & Technology Capabilities
Architecture & Infrastructure
Mobile Application Development &
Deployment
MARK Coronna Marks & Crown LLC
Why is this important? Your score, please…
Consumer reaction to poor mobile experiences:
___ Less likely to use the mobile app___ Switch to competitor’s mobile app___ Less likely to purchase from that company___ Have an overall negative perception of company
On the other hand:___ Likelihood to buy from a mobile-friendly site___ Likelihood to return to a mobile-friendly site
MARK Coronna Marks & Crown LLC
Why is this important?Consumer reaction to poor mobile experiences:
48% Less likely to use the mobile app61% Switch to competitor’s mobile app52% Less likely to purchase from that company48% Have an overall negative perception of company
On the other hand:67% Likelihood to buy from a mobile-friendly site74% Likelihood to return to a mobile-friendly site
MARK Coronna Marks & Crown LLC
Unique mobile experiences translate into enhanced CLV
Lifetime Value Factor Potential Impacts Financial Benefits
Deployment of Mobile Apps
Utilize smart signage and merchandising prompts to encourage consumers to download appsAssumption: 1% new customers/year
$???
Transaction Close Rates
Move consumers from “shoppers” to “transactors”Assumption: 1% additional conversion/year
$???
Transaction Sizes Increase transaction sizes through add-ons, services, and warrantiesAssumption: 3% increase in purchase size
$???
Transaction Frequency
Increase repeat purchases through positive consumer experiencesAssumption: 1 additional purchase/consumer/year
$???
Satisfaction and Loyalty
Increase repeat purchases through a positive brand perceptionAssumption: 1 recommendation per consumer per year
$???
MARK Coronna Marks & Crown LLC
Now, instead of transactions, you have healthy, ongoing customer
relationships
Locator Services
Info Search
Product & Price
Compare
Offers and Promo’s
Purchase Decision Payment
Customer Comms
and Account Servicing
Loyalty Programs, Rebates, Future Offers
Warranty &
Relnship Mgmt
MARK Coronna Marks & Crown LLC
When your customers win, you win!
Thanks for attending! Please feel free to take home a White Paper.