customer retention - commercial excellence forum

Commercial Excellence Forum

Copenhagen, 29th April 2016

Customer retention: The shortcut to growth

2

Agenda

1 Welcome and introduction to the topic of the day

3 Case from Stark: Keeping the right customers

2 Introduction to customer retention: The shortcut to growth

6 Wrap up (before networking and light lunch)

4 Case from Danske Bank

5 Case work: How to work with customer retention in your organization

3

January 29th 2016

Key Account Management: Accelerate

growth within your largest accounts

April 29th, 2016

Customer Retention

September 30th, 2016

Changing Behavior:

How to change behavior in front-line

through training, leadership and new kind of

“touchpoints”

November 18th, 2016

Commercialization and product launch:

How to successfully commercialize and

launch new products - and make them win in

the marketplace

Commercial Excellence Forum 2016

Planned meetings in 2016

4

Next Commercial Excellence Forum is Friday the 30th of September

The most important lever for

organizational change:

Changing behaviour

• How to establish the right mix of competencies

internally to orchestra changes in behavior (HR,

Sales, Business Development, Marketing)

• Learnings and experiences from large scale events

• Insights on larger organizational roll-outs (globally

and regionally)

If you want to change an organization, you have to change the dialogue

Ralph Stacey

5

Agenda

1 Welcome and introduction to the topic of the day

3 Case from Stark: Keeping the right customers

2 Introduction to customer retention: The shortcut to growth

6 Wrap up (before networking and light lunch)

4 Case from Danske Bank

5 Case work: How to work with customer retention in your organization

”It‘s 5 times more costly to acquire new customers, than to retain current ones”

Harvard Business Review

CUSTOMER RETENTION FACT #1

7

In many commercial organisations, there is a tendency to focus

primarily on sales when looking to grow revenue

Solution: We need more focus on sales!

Revenue last year Revenue this year

Situation: We want to grow our revenue…

8

Normally this would make it relevant to look at the different

components of the sales growth equation

Sales growth

Winrate # Sales

opportunities

Avg. order

size

Sales cycle

length

9

Customers

lost for good

However additional sales is only half of the revenue growth equation

Declining sales

from existing

customers

Sale from new

customers

Up/cross

sales

Revenue last year Revenue this year

* Implement’s Customer Retention Survey 2016

6,8% of annual revenue*

10

Maybe we should focus our attention towards keeping customers

happy and preventing them from churning

CUSTOMER LIFECYCLE MODEL

1 3

2

PROSPECT LOST CUSTOMER

CURRENT CUSTOMER

?

11

Our experience tells that three things needs to be in place to succeed

with retention

Creating

organizational

awareness

Understanding

what drives churn

Organizing

for

success

12

Understanding the actual impact of customer churn is key to create

the awareness and burning platform across the organization

47% 44%

Knows the exact numberof customers leaving

Top managementattention

13

Identifying and tracking the drivers of customer churn is first step in

sustaining the client base…

22%

6%

0%

Understands thefinancial impact

In depth driverunderstanding

Identifiedleading

indicators

≠

47%

Knows the exact number ofcustomers leaving

14

Top management must commit dedicated resources and proper

incentives to ensure organisational buy-in

25%

16%

9%

Designated roleand responsibility

Dedicated time inmanagement

team

Retentionincentives matchsale incentives

44%

Top management focus

≠

15

The conclusion is therefore that our awareness is in place but that it is not always

supported by a detailed understanding of churn drivers and aligned organisation

Creating

organizational

awareness

Understanding

what drives churn

Organizing

for

success

16

Agenda

1 Welcome and introduction to the topic of the day

3 Case from Stark: Keeping the right customers

2 Introduction to customer retention: The shortcut to growth

6 Wrap up (before networking and light lunch)

4 Case from Danske Bank

5 Case work: How to work with customer retention in your organisation

17

Agenda

1 Welcome and introduction to the topic of the day

3 Case from Stark: Keeping the right customers

2 Introduction to customer retention: The shortcut to growth

6 Wrap up (before networking and light lunch)

4 Case from Danske Bank

5 Case work: How to work with customer retention in your organization

18

Agenda

1 Welcome and introduction to the topic of the day

3 Case from Stark: Keeping the right customers

2 Introduction to customer retention: The shortcut to growth

6 Wrap up (before networking and light lunch)

4 Case from Danske Bank

5 Case work: How to work with customer retention in your organization

19

Discuss in your groups the following two

questions

Which specific initiatives have you managed

to implement that have made a significant

difference for your customer retention

efforts?

What did you do and why did it succeed?

Please document your answers on the

cardboards

EXERCISE DESCRIPTION ILLUSTRATION

Exercise: Identifying best practice examples

20

Discuss in your groups the following two

questions

What are the critical barriers for succeeding

with customer retention efforts?

Why?

Please document your answers on the

cardboards

EXERCISE DESCRIPTION ILLUSTRATION

Exercise: Identifying Barriers to success

21

Agenda

1 Welcome and introduction to the topic of the day

3 Case from Stark: Keeping the right customers

2 Introduction to customer retention: The shortcut to growth

6 Wrap up (before networking and light lunch)

4 Case from Danske Bank

5 Case work: How to work with customer retention in your organization

Change with Impact.