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CMP Case Study

 

Comprehensive customer analytics target high-leverage opportunities for cross selling

 

The Situation

ReCo was suffering through an industry-wide downturn. The fast-growth times had stopped suddenly. Recently, it had been difficult to sustain revenues and especially profits at previous levels. While ReCo was working hard to bring costs in line with the current economic realities, it also needed to find new and ready sources of revenue to supplement its declining base. The anecdotal evidence suggested that ReCo's current rich customer base was not leveraged at all and that there was a terrific opportunity of cross-selling ReCo's rich product line to its current customer base.

 

The Approach

At ReCo, customer data, historically, had not been captured in a systematic manner. In order to analytically assess the cross-selling opportunity, we had to construct a repository of useful customer information. This would involve conducting a comprehensive collection, validation and data cleansing. The data cleansing was the key part of the process since much of the transactional data collected was error-prone. Confida consultants and subject-matter-experts from ReCo spent the better part of six months assembling, fixing, and validating data from various parts of the organization. Our overall philosophy was to "morph" company decision-making (especially regarding customer interactions) from an instinct-based way to a more fact-based approach.

 

The Solution

A comprehensive customer data warehouse was created to enable the team to answer key customer questions and to conduct discovery analytics. This structured data repository also acted as a source for a more fundamental revision of the way ReCo approached its customers - a more strategic account management approach replacing a more piece-meal, transactional approach. The discovery analytics provided fact-based answers to many customer-facing questions - for instance: which customer relationships were strengthening and which were weakening, who was providing referrals to whom across the company, and where were the best opportunities to cross-sell services. A complete set of standard reports along with the ability to perform ad-hoc queries was imbedded into a web-based, decision-support tool that clearly and easily provided insight intelligence regarding yet-to-be-captured client value.