Customer loyalty and retention programs are all about data. But collecting data is expensive. Before your invest into CRM or a loyalty program, take the customer and sales data from your accounting or point-of-sale software and use that to find and fix problem areas. Then add more data to the system as and when required. More info at http://www.retentionlogix.com

1. Analytics to get and keep more repeat customers
Starting Point
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2. Why Focus on Repeat Customers?
 Your target market has limited size
 Customer acquisition costs are going up
 Repeat customers buy more
 Repeat customers would recommend you
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3. Example: Computer Books Store
• Groups D and R are once–off customers, groups C, B and A are repeat customers
with progressively increasing frequencies.
• Both average sale amount and #sales per customer grow from D to A
• As a result, even though group A has 9 times less customers than D, its contribution
to the business top line is greater.
• Assuming customer acquisition costs are $50, and 50% gross profit margin, you can
see that contributions of groups D and R to bottom line are negative.
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4. Keeping Repeat Customers - Basics
 Calculate an estimated date of next purchase – e.g.
based on historical frequency
 If the customer did not buy as expected make them a
special offer, or contact them and ask if there is
anything you can do
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5. Classify Customers by Recency
Customers can be “new”, “current”, “at risk”, “lost” etc
So that you can precisely target your promotions
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6. Retention Rate Tells a Story
 Now that we know status of each customer, we can
calculate retention rate
 Look at retention rate by customer segment to find
problematic areas of the business
 “Customer Segment” – could be
behavioural, geographical or demographical segment
of your customer base
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7. One state stands out for its low
customer retention
Why does Queensland shows such poor customer retention?
Delivery problem? Strong local competitor?
We can drill-down further, by post code or by metro/regional areas
We can call or email our customers from that state and ask
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8. Select Repeat Customers from
problem areas for call or email
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9. Track outcomes of calls and emails
on the database
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10. Analyse Response Statistics to
Determine Root Cause
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11. Analyse Your Data Today!
 Before you invest in CRM, Loyalty programs, “single
customer view” and so on.
 Start with the data you already have – sales!
 Extract data from Quickbooks, MYOB, shopping
carts, POS – we can help you read data from anything
that generates it!
 This low-cost (or free) exercise will deliver immediate
value pointing to the problem areas you may have.
 Then drill-down and collect more information, but
only when and where it is needed
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12. Next Step
1. Call us:
 USA: (253) 777 4428
 UK: (020) 8123 5559
 Australia: (02) 8006 0669 – this is where we actually are
2. Describe the nature of your business
3. Request a copy of the program
 Or send us your data for expert analysis
More info: www.retentionlogix.com
www.retentionlogix.com