After several steps athe Customer Factory for deWijn.club looks like this:
To reach this result we took the following steps:
- Create the customer flow to understand the sales process
- Create one common language and perception by defining each step
- Split activities to gain better understanding.
- Determine metrics and calculate performance
- Understanding of customer behaviour better by creating cohorts
- Make churn visible and create ‘win-back’ actions Let us show you how we did it
Create the customer flow
Okay, setting up the customer ordering flow helps us to understand the steps your customers take. We started right of by creating the Customer Factory but ended up getting stuck. We struggled to get started, missed elements and we were not being satisfied by the result.
Creating a simple customer flow did set us in motion.
Map the flow to the Customer Factory
Plot the steps on the Customer Factory to create a relation between Acquisition, Retention, Referral and Revenue. In the end we liked “Awareness, Intrigued, Trusting, Hopeful, Satisfied and Passionate better.
This puts the customer first and forced us to think about the customer emotion more.
We had a hunch that several customers skip one saleecycle but returned the next year. Therefore we wanted to get a better understanding their ordering behaviour. This triggered us to create a cohort analysis. But that’s saved for another post.
We ended up adding a group ‘Return after 1 cycle’ and ‘Return after 2 cycles . This are the customers that ordered this cycle but skipped the previous ordering round.
By ordering the post-it’s and removing the less relevant steps we could simplify the overview.
Retention we renamed to recurring customers. (Skipped one sales cycle but ordered this year and the customers that passed 2 cycles but came back this this year.)
This learned us that we lost many customers after one of two years of not ordering. The numbers where much larger than we expected and therefore we added the “Churn” to our Customer Factory.
This gave us the simplified and relevant view of the Customer Factory for the wine-case.
Yearly Cohort Analysis helped us to understand the more successful periods. It helping us to zoom in further. For the first time, we could isolate smaller customer groups, target them to understand them better.
We made great progress but….
- It downed to us that we might have very different segments of customers, with different needs. Then why are we offering one single Value Proposition?
- Where can we service our customers better to convert Churn into Retention ?
- If Referrals is the main accelerator for growth, why aren’t we measuring this?
- Finally we learned that we needed to get faster, better and more disciplined in measuring our performance.
Translating the customer factory into our sales funnel and key Metrics helped us forward again.
Read more about that in the next blog.