Managing any successful business requires a sharp focus on key customers and top-line revenue generation. Many businesses lose sight of the fact that this is an ongoing process. Companies must actively manage customers and revenues, and seek to leverage innovation into a constantly renewing growth engine. Successful management teams are continually focused on identifying new ways to profitably grow customers and revenue both organically and inorganically.
Actionable Customer and Revenue Analysis
CSMG regularly supports our clients with highly-detailed and actionable customer and revenue analysis. Whether your customer base numbers in the tens or hundreds of millions of customers (as for an operator) or is dominated by a handful of key clients (as can often be the case for OEM and component manufacturers), executive teams must have a deep and thorough understanding of their customers and revenues. This requires accurate and creative assessments of all the tools of revenue and customer management: segmentation, customer lifecycle value, cost of acquisition, churn, loyalty, and pricing. CSMG’s role is typically to identify the key levers and major risks to a company’s core asset – its customers' ad revenue base – in the following ways:
- Customer Segmentation: Detailed research into customer segments, demand characteristics, and buying behavior to inform all aspects of your business model. Understand behaviors and needs of the customer in order to maximize customer value, as well as improve product, channel, brand, service, positioning, and pricing strategy. The objective is to understand customer behaviors, needs and attributes using 7-8 different types of segmentation approaches to support business strategy, operating strategy and marketing & sales execution.
- Customer Lifecycle Management / LTV: CSMG collaborates with clients to drive revenue and contribution growth through improved targeting, acquisition, and retention of the best and most profitable customers and to develop the means to increase the profitability of all customers overall. We develop the analysis to understand current and potential customer profitability and recommends tactics to move from a revenue-based model to one which is profitability based.
- Customer Acquisition Management: Identify the most attractive markets and/or customers as well as modes of entry, target market segments, channels, and products and services in order to obtain profitable growth objectives.
- Churn Reduction & Customer Loyalty Strategies: Identify and provide guidance on strategies and tactics to increase market share by cost-effectively identifying and retaining profitable and profit-potential customers and channels.
- Product Portfolio Management: CSMG will develop and/or refine your product and service portfolio leveraging the market opportunity. We typically will define the initial product / service portfolio and overall usage profiles along with features and pricing. We’ll collaborate with our client on the detailed development of the product and service offers leveraging primary research to determine optimum feature sets and price points, and finalize the product portfolio to better position and price product / services in the market and maximize revenues and profits.
- Pricing Optimization: Identify opportunities to raise / lower prices for specific customer / product combinations to increase profit and/or market share. How best to price products in light of competitive offerings? In conjunction with your existing offerings? How to vary by segment and geography?
- Pricing, Bundling and Packaging: Identify key messages for customer segments, core value proposition, and branding. Ensure alignment with existing brand and offerings.