Customer Retention

Cathie Fowler

VP Marketing, Zones

Methods to Identify Your Best Customers

LifetimeValue

DecileRanking

RFM:Recency

FrequencyMonetary

WinGrowOwn

CustomerProfitability

and Potential

Customer Retention

1. Show Up!

2. Commercial Teaching

3. Layers of Engagement

4. Entanglement

Drivers of B2B Customer Loyalty

Long-Term Drivers Short-Term Drivers

> Highly variable> Actionable

% ofContributionto Customer

Loyalty 9%

Company Product Value to Purchaseand Brand and Price Experience

Impact Service RatioDelivery

19%

19%

53%

2. Impact the Purchase Experience

Commercial teaching:

Impart valuable information at each interaction “Educates me on new issues and outcomes” “Helps me avoid potential landmines” “Helps me navigate alternatives” “Provides ongoing advice or consultation” “Helps me quantify financial value” “Offers unique, valuable perspectives on the market”

3. Layers of Engagement

Number of people involved in purchasing decisions has increased in the last 4 years

Past: 3 primary contacts. Today: 12 people Increased role and influence of procurement

Influence mapping and leveraging advocates Standing, Coverage, Role in Oppty, Receptive to

Change

Increase connections internally and externally

Loyalty tends to be stronger when relationship is with end-user not “check-signer”

4. Entanglement

Provide a compelling value so that it becomes hard to switch

A “disincentive” to move your business Beyond loyalty program: airline points Banks offering online bill pay ZonesConnect

Enterprise-level order management

Custom reporting capabilities

Software Licensing management