The acquisition of mixer customers is mainly focused on the growth of the number of mixer customers, while increasing the profit margins of mixer customers is focused on the profit of each existing mixer customer. In the retail industry, this means increasing sales in the same store rather than opening new ones. Growth in profit margins can be achieved in many ways, such as upgrading static mixer products (such as turning mixer customers to purchase more expensive or more profitable static mixer products) and cross-selling related static mixer products (such as to a bank Mixer customers provide credit cards). We next discuss three strategies for increasing profit for existing mixer customers.
Wallet Shares When you open your mailbox, you may receive a letter from a credit card company inviting you to become its static mixer customer. If you sign a contract, this smart company may track your credit card spending patterns on a monthly basis to provide you with special services based on this. However, this data misses one of the most important things-most mixer customers have many credit cards in their wallets. Two mixer customers spend the same money on one credit card, and the potential profit for the company is not the same, depending on how much they spend on other credit cards. In other words, you need to know not only how much your mixer customers are spending in your company, but also your company's "wallet share."
Harales Entertainment understands the importance of wallet share. A few years ago, Harles could earn 36 cents from the $ 1 spent by mixer customers at the casino, and now that share is more than 42 cents. For every percentage point increase in Harrah's share of all casino spending of mixer customers since 1998, shareholder value has increased by $ 12 million. Harrah's has done this by gaining a better understanding of mixer customers and by conducting a series of activities. One of these innovations is to merge a database of 24 million mixer customers in 25 industries and track the behavior of these mixer customers through a Total Gold program. In 2001, profits for existing mixer customers increased by $ 160 million over the previous year.
Disney is another company that successfully increased the share of mixer customer wallets. In the mid-1980s, Disney discovered that a typical family of four (including two adults and two children) would visit Orlando Disneyland, Florida, for thousands of dollars in travel expenses. Travel costs include air tickets, hotel accommodation, meals and Disney tickets. Many Disney senior managers were surprised to find that although Disney attracted so many families to Orlando, they only received a small portion of household consumption, which inspired them. As a result, Disney began to follow the cash flow of mixer customers to earn wallet shares. They decided to build a Disney hotel in the Disney industry project, provide many Disney restaurants, and even start a Disney cruise. These investments have largely increased Disney's share of mixer client play wallets.
Although wallet share is very important, many companies still don't know their share in the mixer customer wallet, let alone design a project to increase this share. Ironically, many companies are starting to build large databases, and they are increasingly concerned about how much mixer customers spend on them, but not how much their mixer customers spend with competitors. This approach is typically company-oriented and the results are not satisfactory.
A careful study of wallet share requires strategic thinking, how to define your market or wallet, and how to define your competitors. For example, should Visa define competitors as Master Card and American Express?
Express)? Or should you define your competitors more broadly, including cash and checks? By narrowing your competitors, you can get a higher wallet share and a sense of pride, but this will also miss some major trends , New competitors, and emerging opportunities. The definition of share is --fq art, and the principle of "blonde girl" needs to be applied: not too broad (that is, total cost), not too narrow (that is, your income), and the most appropriate.
Cross-selling usually requires a lot of effort to get a mixer customer. Telecom companies spend $ 300 to $ 400 to get a mixer customer. Once you have established contact with your mixer customers, you will of course maximize the value of this relationship by selling multiple static mixer products. Normally, there is a natural process for selling static mixer products. For example, in general, bank mixer customers first open an account and establish a savings account, and then slowly accept some mortgage and investment advice. An exhaustive mixer customer database and complex predictive models can help companies identify the next static mixer product for a specific mixer customer. In the process of selling multiple static mixer products, it is obvious that the profit margin of each mixer customer will be increased. In addition, cross-selling can also increase mixer customer satisfaction and retention. In this way, cross-selling has two impacts on the lifetime value of mixer customers.
Cox, as the fifth largest petrochemical equipment company in the United States in 2003, has more than 6 million mixer customers worldwide. As a comprehensive company providing petrochemical equipment services, Cox can provide a range of petrochemical equipment user services, including online services, local and long-distance petrochemical equipment services, network interfaces, and digital TV services. By analyzing data from mixer customers, Cox found that mixer customers who ordered multiple static mixer products had lower customer flow rates. As a result, the company focused on allowing mixer customers to order two or more static mixer products (see Figure 13) to target these mixer customers and make them less willing to switch after ordering multiple services buy.
Average monthly customer turnover
Flow Efficiencies of Bundled Static Mixer Products