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Customer Relationship Monetisation

December 23rd, 2009 · 77 Comments

CRM stands for Customer Relationship Management. But what it should really mean is Customer Relationship Monetisation.

Most companies spend a lot of effort working through the strategies for new customer acquisition. But little is done for leveraging the existing customers – beyond the first product the customer signs up for. What is needed is to upsell and cross-sell. In effect, the metric that needs to be tracked should be the number of products that a customer is using. In most companies, the number will probably be between 1 and 1.5. Getting it to 2 or higher and thus increasing sales numbers is probably going to be easier than getting new customers.

Another benefit is that the more products a single customer users, the greater will be the loyalty. Or, put another way, single product customers are more vulnerable to switching to competition.

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77 responses so far ↓

  • 1 Customer Relationship Monetisation » blog.lonelynot.org // Dec 23, 2009 at 12:06 pm

    […] Read more:  Customer Relationship Monetisation […]

  • 2 Rajaram // Dec 23, 2009 at 5:29 pm

    Absolutely right. CRM is GET,KEEP,GROW. or,ACQUIRE,RETAIN,ENHANCE. most marketeeers monitor “how many new customers have been acquired” ,and when they do not grow their relationship with these newly acquired customers, theuy are puzzled why the Customers left them. Do you just want an acquaintance? or a friend?

  • 3 kpowerinfinity // Dec 27, 2009 at 3:40 pm

    Hi Rajesh,

    Good point. And that’s what we’ve realized in Capillary – the cost of acquiring a customer is too high and getting him to the store – if you can pitch offers/services on the spot and make them do an impulse purchase, it works far better. And at Capillary as I had explained to you, we have unique means of doing it.

    Almost 10-15% of the customers can be made to do an impulse buy – and the marginal cost of sales is too less. The retailer can also pitch an out of store experience to improve customer relationship.

    Thanks & Regards,

    Krishna Mehra

  • 4 Blog Past: Customer Relationship Monetisation // Dec 26, 2010 at 5:00 am

    […] (Mar 10) – Off-deck Mobile Ecosystem (Feb 10) – A Micropayments Infrastructure for India (Jan 10) – Customer Relationship Monetisation (Dec 09) – India’s Internet: Challenges and Needs (Dec 09) – A Perfect Storm for Mobile Operators: […]

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