Framework for Analyzing Customer Loyalty Dynamics PPT
This PPT slide, part of the 89-slide Customer Loyalty PowerPoint presentation, presents a framework for understanding customer loyalty through a model referred to as the "customer sieve." This model is particularly focused on diagnosing the reasons behind share of wallet "leaks," which occur when customers divert their spending to competitors. The structure is divided into 2 main sections: the Customer Sieve and Share of Wallet Frameworks.
The Customer Sieve section outlines a flowchart that categorizes customers based on their interaction with the store. It begins with whether customers have ever visited the store, branching into those who continue to visit and those who have stopped. For those who made purchases in the past year, it further breaks down their annual spending at the discount store versus other stores. This segmentation allows for a granular analysis of customer behavior, highlighting the number of visits and average purchase per visit, ultimately leading to an assessment of the share of wallet.
The Share of Wallet Frameworks section emphasizes the total wallet potential of customers, distinguishing between those who are aware of the store and those who are not. It also addresses store coverage, indicating that customers who are unaware of the store have no potential for engagement.
The slide concludes with a list of resulting actions aimed at addressing the root causes of customer behavior. These actions include improving selection, service assistance, and convenience, as well as implementing promotions and advertising strategies. This framework provides a comprehensive approach for executives to understand customer dynamics and develop strategies to enhance loyalty and retention.
This slide is part of the Customer Loyalty PowerPoint presentation.
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