Smart companies realize that repeat business (customer loyalty) is one of the most important — if not THE most important — objectives to achieve in both the short and long run. This is a key challenge for marketers.
As Bain & Company explains:
“Investing to earn the loyalty of your customers often requires trade-offs — you must decide which of the many investments you could potentially make will result in the greatest return. A clear understanding of your company’s loyalty economics will help you make those decisions. It will give you a quantitative basis for investments in long-term customer assets and provide a defense against the short-term, sub-optimal, ‘quarterly earnings’ mind-set that often tempts leaders to generate ‘bad profits.'”
“It is possible to calculate loyalty economics with great precision, if you have the resources and the tools to do so. If not, you can also make rough estimates that can help guide decision-making. This page describes a relatively simple way to get reasonable, rough estimates of the potential value that can be created by improving your company’s Net Promoter score and earning the loyalty of more of your customers.”
According to Bain, a simple formula for computing customer lifetime value is:
Click the above formula to read a lot more about customer lifetime value and how to calculate it.
Many times, resumes are processed by computer software looking for key words — or busy executives inundated with job applicants. So, we have to make sure that OUR resume is the one that is read and liked!
As Don Goodman writes for Careerealism:
“Skimming – that’s what hiring managers are doing when they are going through resumes. There’s no time to read word-for-word when there are hundreds of resumes coming in for that one position, so they skim for key information. In fact, studies show that they spend about eight seconds scanning your resume. If you want a positive response on your resume in the 8-second resume glance, here’s what you have to do.”
Click the image to read several suggestions from Goodman.
After enduring the Great Recession, many — but, by no means all — entrepreneurs have done better the last couple of years. So, how are they feeling as we enter further into 2015?
As Leigh Buchanan reports for Inc., the leading publication devoted to entrepreneurs, as well small and fast-growing firms:
“Entrepreneurs, optimistic by nature, are particularly — indeed, almost giddily — enthusiastic. Our second annual State of Small Business survey finds their collective confidence up sharply from last year. While they do have concerns — about health care costs, political gridlock, and regulation — most seem to share the sentiments of J. Schwan, CEO of Solstice Mobile in Chicago, who says, ‘It would take something pretty significant to inhibit the growth we’ve been experiencing.'”
“The percentage of respondents who describe themselves as ‘very confident’ about the economy’s prospects over the next 12 months has almost tripled, from just under 10 percent last year to 26 percent this year. The number who say they have little confidence that the economy will be strong has dropped by more than half.”
“Survey respondents, drawn from the Inc. 5000 universe of America’s fastest-growing companies, were even more upbeat about the prospects for their own companies, with 57 percent rating them as ‘excellent,’ versus 38 percent [last year]. The percentage who see their company’s 12-month outlook as average or poor fell from 16 percent to just 8 percent.”
Click the image to read more.
We know that many shoppers regularly look for discounts, and typically won’t make many discretionary purchases without them. But, there are also shoppers who often buy without looking for a sale. Through their access to big data, a growing number of firms are learning to better target their discounts.
As Shelly Banjo reports for the Wall Street Journal:
“There’s a growing gap in retailing between those who get discounts and those who don’t. Retailers such as Stage Stores Inc., which runs 880 department stores, including the Bealls and Goody’s chains, are starting to pare back the promotions by showing them only to customers who respond to price reductions. At the other end of the spectrum, Stage Stores has shoppers who are more interested in nabbing the newest styles in shoes and handbags than in sniffing out bargains. Stage Stores rarely advertises clearance sales to them.”
“After years of collecting data, retailers have gotten savvier about how to use it. They are trying to maximize full-price sales to fatten profit margins, while using discounts to clear aging inventory and persuade reluctant shoppers to part with their cash. A fifth of online shoppers are considered true ‘discount junkies,’ people who make purchases only when plied with discounts, according to new data from AgilOne Inc., which works with 150 retailers to analyze customers’ purchases and predict their behavior. About 15% of shoppers generally pay full price for items and don’t bother searching for sales.”
Click the image to read more of Banjo’s story.
Shoppers such as these at Nordstrom Rack in Schaumburg, Illinois, look for bargains. However, discounts don’t excite all shoppers. Photo: Nam Y. Huh/Associated Press