Daemon Quest

Customer Value

Customer value must be the basis of any commercial and marketing strategy

Although we may have many customers today, if their value in the medium or long term is low, we will be putting our profitability at risk.

At Daemon Quest, we can calculate the value of the present and potential customers, and make estimations on their long term performance and their potential loyalty to the company.

A company is a long-term project, and its customer are the best indicator of the company ´s current health and its future perfomance.The reason is obvious: if a customer has had an enjoyable purchasing experience, the probabilities of the customer maintaining and developing a relationship with the company in time increase. However, if the experience is negative, the customers’ value to the company decreases, and thus, the expected revenue from that user also drops.

The professionals at Daemon Quest have extensive knowledge and expertise to evaluate your customers’ Potential Value and distinguish between:

  • MVCs (Most Valuable Customers) or best customers 
  • HPC (High Potential Customers) greatest growth potential 
  • BZs (Below Zeros) the unprofitable ones

This individualised segmentation of each customer allows us to determine what their performance is with the company (Customer Share) and identify which are more or less valuable. Having a detailed knowledge of the R.O.C. (Return On Customer) is key for you to effectively manage your sales force and optimise your investments in marketing.

If you need to evaluate your customers and manage their potential value, we can help you

LVT Life Time Value

The "Life Time Value" of a customer is the total of present and future income that the customer will generate for the company, during the total time that the customer maintains a relationship with the company. If we add up the different values over time, of all the customers of a company, we obtain the "customer equity", that is, the total estimated revenue a company can expect to obtain from its current customer base.

Customer Share

Some customers are very loyal and give all their business to one supplier. However, a majority tend to spread their purchases amongst various competitors. It is important to identify those customers who share their business to understand what their total potential is.
Knowing a customers total potential allows companies can make sure they treat them correctly, differentiating them from those with a similar (low) spending level but much less growth opportunity thereby encouraging them to become more loyal.

ROC Return On Customer

Customer oriented companies do not tend to concentrate on the return on capital investments they make (“Return On Investment”, or ROI), they actually focus on the returns they obtain from customers. This is the “Return On Customer”, or ROC, the metric that links the customers revenue during a specific period of time and the “customer equity” to the company.

The Marketing Intelligence Review

First publication in marketing and clients strategy

Case Studies

Seur

Objetives: Analyze SEUR's areas, divisions and products.

Solution: Corporative Sales Intelligence Portal Service.

Result: Successful launching of a new products, identification of new segments and loyalization plan.

Caja Navarra CAN

Objetives: Increase Portfolio value, Costumer linking.

Solution: Income Model, Pre-awarded loans model, Pension plans model.

Result: Strategic costumer plan: Defend and increase our portfolio's value.

NECK & NECK

Objetives: Increase costumer club base, purchase frequency and average ticket.

Solution: Advanced Marketing in the segmentatin of Club Neck costumers.

Result: Efficient sales actions according to profile and costumer status.

AVIVA

Objetives: Differentation of services, Customer Value Proposal.

Solution: Costumer Segmentation Plan, Costumer Value, Abandonment analysis, Potential Market, Development of operative.

Result: Systematic Orientation towards costumer.

NH Hoteles

Objetives: Develop an analytical CRM Project.

Solution: Corporative Sales Intelligence Portal Service.

Result: Aiming the company at Costumer Value, Overall sales vision, and understanding what goes on in the environment

Services

Customer Value