When a client undertakes analysis of their customer data for the first time, it can be genuinely unnerving. They are entering into an area of which they may have no previous experience. As a result, they may find it difficult to pass responsibility onto the agency guiding them through the process.
This inability to trust is both good and bad. Good as it shows the client genuinely cares about their customers, the processes and changes being implemented to help move their business forward. Bad because it can give rise to a need to appear more knowledgeable than they may be about their customers – an attempt to retain ownership.
A consultant has to navigate these waters carefully. The most effective way is to ensure that the client is a true stakeholder in the whole process – they bring ideas and approaches to the table that are critical for success. However, because of their trepidation with the whole process, there is a real danger that a client will “chase the money”.
If it hasn’t been introduced prior to this point, then a discussion about the implementation of an RFM model should be undertaken. With the intricacies explained, a client will see a marketing focus on high revenue clients placed in sharp relief with how often and how frequently they interact with their business. This will lead to a more effective approach for customer contact prioritisation, and a more customer-driven communications experience.
Approaches such as RFM modelling or using Lifetime Value are the very bottom rung of analytical complexity. But for a client that has little knowledge of how to best develop their data, they can be revolutionary. Indeed, if the consultant can fully involve the client in the process, then these concepts can be the foundations for long-term growth of the client’s business and their own knowledge.
