The Customer Marketing Method by Jay Curry & Adam Curry

Author:Jay Curry & Adam Curry
Language: eng
Format: epub
Publisher: THE FREE PRESS
Published: 2000-07-15T00:00:00+00:00

Figure II.12

Figure II.13

Figure II.14

Figure II.15

Fred put together this “What if?” scenario spreadsheet and ran a simple simulation: “What if we had a net migration of six Small customers up the pyramid—three to Medium, two to Big, and one to Top—without raising fixed costs?”

The results: a 10% revenue increase and a whopping 61% boost in profits (see Figure II.15 )

The potential CRM profit payoff for InterTech was there in black-and white.

Fred and Bill rushed the results into Eric, who studied the figures and asked rather laconically: “What happens if we lose just one Top customer and one Big customer?”

In 10 seconds the spreadsheet told the story: the loss of one Top and one Big customer would mean an 8% decline in revenues and a 50% cut in profits (see Figure II.16 )!

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