Understanding Variability in Customer Value PPT

This PPT slide, part of the 25-slide CRM and the Customer Experience PowerPoint presentation, presents a visual representation of customer value variability, emphasizing that not all customers contribute equally to a business's bottom line. It features a bell curve illustrating the distribution of customers based on their profitability. The x-axis denotes profitability per customer, while the y-axis indicates the number of customers. The curve peaks at "moderately profitable," indicating that most customers fall into this category, with fewer customers being either unprofitable or highly profitable.

Key questions are posed on the left side of the graph, prompting reflection on customer management strategies. These include inquiries about the reasons behind unprofitability, potential cost reductions, and strategies for customer engagement. Such questions are crucial for identifying areas where businesses can enhance customer value.

To the right, a three-dimensional model illustrates the relationship between relationship duration, profitability, and the number of relationships. This model suggests that optimizing customer relationships can significantly impact overall business potential. The upward trend labeled "Customer Optimisation" indicates that increasing the duration and profitability of customer relationships can lead to greater business success.

The concluding statement reinforces the idea that a business's full potential hinges on the number, profitability, and duration of its customer relationships. This insight is vital for executives looking to refine their customer engagement strategies and maximize value from their customer base.

This slide is part of the CRM and the Customer Experience PowerPoint presentation.

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