© CustomerGauge / Directness BV

DO YOU REALLY KNOW YOUR TOP CUSTOMERS?

Revenue Accelerator

© CustomerGauge / Directness BV Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.

Learn about your best customers with CustomerGauge"Revenue Accelerator Adam Dorrell 18 September 2013

© CustomerGauge / Directness BV

About a customer base: “Super-Pareto”

37,500 customers

351,800 customers 91%

49% revenue $71m

51% revenue $73m

=

Typical split for a B2C company:

Less than 10% Customers account for HALF Total Revenue

$

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49% revenue HIGHER VALUE CUSTOMERS

LESSER VALUE CUSTOMERS

About a customer base: Revenue

9% customers

91% customers

Average Spend*

$483 (8x lesser value customers)

Average Spend

$58

Based on typical b2c customer. With 2 year Lifetime value of 400,000 customers, $150m Average spend was normalised to $100 average (actually $323) NPS 41 with Response 23%

© CustomerGauge / Directness BV

49% revenue HIGHER VALUE CUSTOMERS

LESSER VALUE CUSTOMERS

About a customer base: NPS

8% customers

92% customers

NPS 51 (1.3x or 20 points higher than lesser value customers)

Response

41% (2x lesser value customers)

NPS 39 Response

20%

Based on typical b2c customer. With 2 year Lifetime value of 400,000 customers, $150m Average spend was normalised to $100 average (actually $323) NPS 41 with Response 23%

© CustomerGauge / Directness BV

NPS Detail by Detractor & Promoter

$11m Ave $517

$8m Ave $64

$20m Ave $517

$10m Ave $67

$92m Ave $275

$Total for segment Ave $Spend per customer

Customers that respond to NPS account for 35% revenue (even though response was 23%) Promoters (9,10) alone are 21% revenue Top promoters are 14% of revenue but only 2.5% of the customer base!

Detractor 0 - 8 Promoter 9 - 10 No response

Top Promoters: 2.5% of customers = 14% revenue

HIGHER VALUE Top 8% customers 49% Revenue

LESSER VALUE Bottom 92% customers 51% Revenue

From NPS Responses

35% Revenue Covered

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Email Campaign: Revenue Accelerator

8% customers

Dear Customer, Thank you for saying you would be likely to recommend us. Here is a gift from us for you: And something for 2 friends so they can try us too.

$25 XYZ122333444

$25 XYZ122333666

$25 XYZ122333999

Email sent to top promoters 2.5% of customers =

10,000 Emails sent

Existing customer (upsell)

New Customers (referral)

Coupons sent by email to approx 10,000 customers. Typical campaign, spring 2013

© CustomerGauge / Directness BV

Email Campaign: Results

Existing customer (upsell) used 2113 coupons.

13.5% Redemption (18% emails open and actioned),

$220 Average Order

New Customers (referral)

331 New Acquired $182,000 Value

Coupons sent by email to approx 10,000 customers. Typical campaign, spring 2013 Based on Gross Sales before discount). Total sales based on projected lifetime sales $550 of new customers)

TOTAL VALUE OF CAMPAIGN

$645,000 VALUE PER EMAIL

SENT

$65

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CustomerGauge Life Cycle Report •  AUTOMATICALLY

Identifies your high spending clients and their NPS results.

•  Based on Pareto 20/80 •  Available in

CustomerGauge together with EmailEngine Marketing Tool

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THANK YOU "INFO@CUSTOMERGAUGE

Revenue Accelerator