Customer Economics

The chart to the left provides the holistic view of understanding how to manage your business, with your customer at the core. At Winsper, we call this model Customer-Driven Business Performance. It established a simple framework yet the implications can have a profound effect on properly organizing sales, marketing, product development, finance and operations centered around your customers.

The overall benefits for senior executives are:

• Analyze customer profitability to drive increased shareholder value.
• Segment customers using Life Stage Models.
• Identifying the customer conversion.
• Understanding Net Present Value.
• Eliminate customers destroying company profitability.
• Measure Total Cost of Customer AcquisitionTM
• Reorienting customer value propositions to
  increase customer satisfaction while reducing wasted costs.
• Focus company resources to measure, manage and optimize
  your customer revenue opportunity.

It starts with having a complete understanding of knowing your best customer from the perspective of value, revenue, profitability and advocacy. The chart below outlines the process of customer centricity across all of the stages of the model.

To read more about Customer Economics click here to download our fact sheet.

This entry was posted on Friday, March 27th, 2009 at 10:30 am and is filed under Customer-Driven Business Performance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.