New measure of customer relationship strength to help companies allocate scarce resources to generate revenue
Dr Sonja Fourie, Founder and CEO of Customer Science Lab.
When COVID-19 restrictions were applied, many businesses found themselves unable to communicate with their customers about the services canceled or the alternatives available to them. It is the result of using traditional supply-driven strategies by pushing products and services that translate into short-term benefits, rather than using demand-driven strategies where customer needs are met. are included.
The current environment has forced many businesses to focus on what they perceive to be cost drivers – marketing and in particular loyalty programs – without considering the important role they play as revenue drivers. for the organization. Often this is because the business does not have access to the metrics it needs to critically assess its customer strategies and decision making is compromised.
To address this issue, Customer Science Lab has developed a unique and critical new metric, the Customer Relationship Strength Score (CRS-SCORE), which allows companies to measure the strength of the customer relationship and then use that metric to determine the effect of various strategies on the value of the client’s assets, where the focus is on generating sustainable future income for the business as well as on value for the client.
“Marketing spending and in particular the design of loyalty programs are expected to develop, strengthen and deepen relationships with customers,” says Dr Sonja Fourie, CEO and Founder of Customer Science Lab. “Having a score to measure the effectiveness of customer relationship strategies allows companies to be more strategic in allocating scarce resources and making informed decisions about revenue drivers for the business. This is a fundamental differentiation capacity in the new digital economy, ”adds Dr Fourie.
The tool has already been used in the South African food and clothing retail industry to calculate its CRS-SCORE. The measure provided an independent view of the average strength of customer relationships for the industry. While in this case it was carried out for the whole chain, the score can also be calculated by consumer and by retailer. It can be used to identify the main accelerators and detractors in the process of building relationships with consumers as well as for benchmarking with the industry. As the nature of customer relationships differs between industries, this research will be extended to other industries such as the financial services sector, telecommunications, healthcare industry and others.
For more information on these metrics and key associated metrics, please visit www.customersciencelab.com.