profit - jornaya · 2019. 12. 18. · receive the earliest indicators of shopping behaviors:...

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RECEIVE THE EARLIEST INDICATORS OF SHOPPING BEHAVIORS: CONNECT YOUR DATABASE WITH OUR NETWORK See which of your customers are shopping Target your messages Reach the right person at the right time Grow high customer lifetime value MAJOR-LIFE PURCHASE (MLP) A big-ticket item that entails a complex buying decision with a high degree of financial and emotional risk as well as significant consideration and research (e.g. a car, loan, insurance, degree, among others). The Power of Customer Retention Ways to keep your major-life purchase customers MAJOR-LIFE PURCHASES 5x It costs 5 TIMES as much to attract a new customer than to retain an existing one Selling to an EXISTING CUSTOMER can yield a 60%- 70% profit Selling to a NEW PROSPECT results in only a 5%-20% profit 60% -70% PROFIT Monitoring current portfolios is CRUCIAL Increasing CUSTOMER RETENTION rates by 5% can BUMP PROFITS by 25%-95% 25% 95% Sources: Bain & Company, Prescription for Cutting Cost, 2001. HBR, The Value of Keeping the Right Customers, 2014. Farris, Paul, Bendle, Neil, et. al. Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, 2010. Jornaya. Customer Journeys in Major-Life Purchase Markets. 2019.

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Page 1: PROFIT - Jornaya · 2019. 12. 18. · RECEIVE THE EARLIEST INDICATORS OF SHOPPING BEHAVIORS: CONNECT YOUR DATABASE WITH OUR NETWORK See which of your customers are shopping Target

RECEIVE THE EARLIEST INDICATORS OF SHOPPING BEHAVIORS: CONNECT YOUR DATABASE WITH OUR NETWORK

See which of your customers are shopping

Target your messages

Reach the right person at the right time

Grow high customer lifetime value

MAJOR-LIFE PURCHASE (MLP)A big-ticket item that entails a complex buying decision with a high degree of financial and emotional risk as well as significant consideration and research (e.g. a car, loan, insurance, degree, among others).

The Power of Customer RetentionWays to keep your major-life purchase customers

M A J O R - L I F E P U R C H A S E S

5xIt costs 5 TIMES

as much to attract

a new customer

than to retain an

existing one

Selling to an

EXISTING

CUSTOMER can

yield a 60%-

70% profit

Selling to a

NEW PROSPECT

results in only a

5%-20% profit

60% -70% PROFIT

Monitoring current

portfolios is

CRUCIAL

Increasing

CUSTOMER

RETENTION rates

by 5% can BUMP

PROFITS by 25%-95%

25%

95%

Sources:

Bain & Company, Prescription for Cutting Cost, 2001.

HBR, The Value of Keeping the Right Customers, 2014.

Farris, Paul, Bendle, Neil, et. al. Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, 2010.

Jornaya. Customer Journeys in Major-Life Purchase Markets. 2019.