Most of us use credit/debit card at the check out counter. The sales receipt machine should be able to read the issuer of the card and then target advertisement from that banker.
May be, we should go one step further. The bank should be able to send a customized advertisement or offer to the card holder on the back of the receipt. This can even come real-time.
This concept is already practiced by HEB. If you purchase a baby food from GERBER, the system prints out separate discount coupon for a similar product from HEB's own brand.
Showing posts with label New Concepts. Show all posts
Showing posts with label New Concepts. Show all posts
Tuesday, October 7, 2008
Customer Value
For any given company, a customer represents 2 values.
1. Realized Value: This is the $ value of profit that the customer contributed to the company's bottom line for a given period.
2. Potential Value: This is the $ value of profit from lost opportunity during the same given period. The lost opportunity could have been lost to a competitor or its still not realized by anyone.
If companies are able to derive these 2 values (Realized Value & Potential Value), then the company can device various strategy to increase the "Realized Value" from the customer.
Once we get these values, the following questions need to be answered:
1. Which customer should the company give more importance to? Is it for customers with higher Potential Value or customer with higher Realized Values.
2. What kind of service levels should we maintain for each of these 2 segments
3. Should we perceive the $ value alone or should we standardize them to a % value. In other words, Realized Value + Potential Value = 1.
1. Realized Value: This is the $ value of profit that the customer contributed to the company's bottom line for a given period.
2. Potential Value: This is the $ value of profit from lost opportunity during the same given period. The lost opportunity could have been lost to a competitor or its still not realized by anyone.
If companies are able to derive these 2 values (Realized Value & Potential Value), then the company can device various strategy to increase the "Realized Value" from the customer.
Once we get these values, the following questions need to be answered:
1. Which customer should the company give more importance to? Is it for customers with higher Potential Value or customer with higher Realized Values.
2. What kind of service levels should we maintain for each of these 2 segments
3. Should we perceive the $ value alone or should we standardize them to a % value. In other words, Realized Value + Potential Value = 1.
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