The fact that a company is even gathering, much less analyzing customer loyalty metrics, can be a huge win for the company. Over time, these miscalculated metrics should be found out but let’s not get ahead of ourselves.

Mark

First, companies can certainly make the mistake of “establishing nonexistent relationships” between loyalty metrics and profitability figures. It’s a common mistake made all the time, and is usually the result of misunderstanding your customer base in relation to a company’s business model, services, and or products. Companies start measuring and looking at the wrong metrics at the wrong time. Analytic software packages can do a great job correlating these different data sets, but it’s never as easy as vendors make it sound, and more importantly, the software is only as good as the statition/analyst working it.

But on the flip side, it’s important not to overlook the value of customer loyalty. Measured accurately and used correctly, it can be an invaluable tool in measuring and even predicting actions across different segements of your customer base.

The key is understanding which customer metrics are the most important to your business and across different segments. Obviously, they differ greatly from industry to industry and business model to business model. Once you have that solidified, leveraging analytics to crunch the numbers becomes the easy part.

So as is usually the case with anything CRM related, it’s more about the people and less about the software.

David Sublinsky
Director, Customer Service

We at the Brookeside Group have spent 10+ years studying this, and have developed a process by which we can predict with 88% certaintly, which clients will leave. Our process is generally most effective in situations that are b2b, and where the clients have something vested in the relationship. What we are actually measuring is the clients will to further develop the relationship. The results of our survey are put through an algorithm we have developed, and the outcome is provided.
Initially, each client is given a number score, and place in 4 buckets, Level -1 through Level 3. Level 3 clients are highly motivated to continue to maintain the relationship, continue to buy, and open to cross-selling and up-selling opportunities. Level -1 clients are looking to replace you as their vendor, and will do so with 88% likelihood within 6 months.

I know I have probably overwhelmed you with my response. Please feel free to contact me at 978-266-9876 ext 231 if you would like to speak about this in greater detail.
If you are attending CRMevolution in New York, our founder, Tom Cates is speaking and we would relish the opportunity to speak there as well.

Thank you.
Regards,

Bill Glencross
VP of Sales and Marketing
Brookeside Group