customer retention - commercial excellence forum
TRANSCRIPT
Commercial Excellence Forum
Copenhagen, 29th April 2016
Customer retention: The shortcut to growth
2
Agenda
1 Welcome and introduction to the topic of the day
3 Case from Stark: Keeping the right customers
2 Introduction to customer retention: The shortcut to growth
6 Wrap up (before networking and light lunch)
4 Case from Danske Bank
5 Case work: How to work with customer retention in your organization
3
January 29th 2016
Key Account Management: Accelerate
growth within your largest accounts
April 29th, 2016
Customer Retention
September 30th, 2016
Changing Behavior:
How to change behavior in front-line
through training, leadership and new kind of
“touchpoints”
November 18th, 2016
Commercialization and product launch:
How to successfully commercialize and
launch new products - and make them win in
the marketplace
Commercial Excellence Forum 2016
Planned meetings in 2016
4
Next Commercial Excellence Forum is Friday the 30th of September
The most important lever for
organizational change:
Changing behaviour
• How to establish the right mix of competencies
internally to orchestra changes in behavior (HR,
Sales, Business Development, Marketing)
• Learnings and experiences from large scale events
• Insights on larger organizational roll-outs (globally
and regionally)
If you want to change an organization, you have to change the dialogue
Ralph Stacey
5
Agenda
1 Welcome and introduction to the topic of the day
3 Case from Stark: Keeping the right customers
2 Introduction to customer retention: The shortcut to growth
6 Wrap up (before networking and light lunch)
4 Case from Danske Bank
5 Case work: How to work with customer retention in your organization
”It‘s 5 times more costly to acquire new customers, than to retain current ones”
Harvard Business Review
CUSTOMER RETENTION FACT #1
7
In many commercial organisations, there is a tendency to focus
primarily on sales when looking to grow revenue
Solution: We need more focus on sales!
Revenue last year Revenue this year
Situation: We want to grow our revenue…
8
Normally this would make it relevant to look at the different
components of the sales growth equation
Sales growth
Winrate # Sales
opportunities
Avg. order
size
Sales cycle
length
9
Customers
lost for good
However additional sales is only half of the revenue growth equation
Declining sales
from existing
customers
Sale from new
customers
Up/cross
sales
Revenue last year Revenue this year
* Implement’s Customer Retention Survey 2016
6,8% of annual revenue*
10
Maybe we should focus our attention towards keeping customers
happy and preventing them from churning
CUSTOMER LIFECYCLE MODEL
1 3
2
PROSPECT LOST CUSTOMER
CURRENT CUSTOMER
?
11
Our experience tells that three things needs to be in place to succeed
with retention
Creating
organizational
awareness
Understanding
what drives churn
Organizing
for
success
12
Understanding the actual impact of customer churn is key to create
the awareness and burning platform across the organization
47% 44%
Knows the exact numberof customers leaving
Top managementattention
13
Identifying and tracking the drivers of customer churn is first step in
sustaining the client base…
22%
6%
0%
Understands thefinancial impact
In depth driverunderstanding
Identifiedleading
indicators
≠
47%
Knows the exact number ofcustomers leaving
14
Top management must commit dedicated resources and proper
incentives to ensure organisational buy-in
25%
16%
9%
Designated roleand responsibility
Dedicated time inmanagement
team
Retentionincentives matchsale incentives
44%
Top management focus
≠
15
The conclusion is therefore that our awareness is in place but that it is not always
supported by a detailed understanding of churn drivers and aligned organisation
Creating
organizational
awareness
Understanding
what drives churn
Organizing
for
success
16
Agenda
1 Welcome and introduction to the topic of the day
3 Case from Stark: Keeping the right customers
2 Introduction to customer retention: The shortcut to growth
6 Wrap up (before networking and light lunch)
4 Case from Danske Bank
5 Case work: How to work with customer retention in your organisation
17
Agenda
1 Welcome and introduction to the topic of the day
3 Case from Stark: Keeping the right customers
2 Introduction to customer retention: The shortcut to growth
6 Wrap up (before networking and light lunch)
4 Case from Danske Bank
5 Case work: How to work with customer retention in your organization
18
Agenda
1 Welcome and introduction to the topic of the day
3 Case from Stark: Keeping the right customers
2 Introduction to customer retention: The shortcut to growth
6 Wrap up (before networking and light lunch)
4 Case from Danske Bank
5 Case work: How to work with customer retention in your organization
19
Discuss in your groups the following two
questions
Which specific initiatives have you managed
to implement that have made a significant
difference for your customer retention
efforts?
What did you do and why did it succeed?
Please document your answers on the
cardboards
EXERCISE DESCRIPTION ILLUSTRATION
Exercise: Identifying best practice examples
20
Discuss in your groups the following two
questions
What are the critical barriers for succeeding
with customer retention efforts?
Why?
Please document your answers on the
cardboards
EXERCISE DESCRIPTION ILLUSTRATION
Exercise: Identifying Barriers to success
21
Agenda
1 Welcome and introduction to the topic of the day
3 Case from Stark: Keeping the right customers
2 Introduction to customer retention: The shortcut to growth
6 Wrap up (before networking and light lunch)
4 Case from Danske Bank
5 Case work: How to work with customer retention in your organization
Change with Impact.