Is your online store building loyalty or losing valuable customers?
What is customer asset analysis and how does it benefit your online store business?
Are you a retailer? Do you run an online store or have brick and mortar retail shops and believe that your success depends on your customers?
Keep on reading…
Your online store exists because there is demand for its products or services by your customers.
Without that demand your business will not exist as the products or services it offers will not have anyone to sell to.
Demand is the driving force of your online store business. Demand is created by customers, therefore customers are the reason your retail business exists.
Pretty straightforward, right?
Analyzing customers’ “flow” in and out of an online store is the single most reliable way to understand where your online store business is now and where it is heading to.
Customer flow is the ongoing process in which an online store acquires new customers and stimulates part of those customers to repeat their purchase and ultimately become loyal customers.
Inevitably there is also a major group of customers which the online store loses along the whole process as well.
Customer flow (asset) analysis
Customer asset analysis is measuring the count of customers and their generated revenue of those three main groups of customers (loyal, new and lost customers) for a given period of time.
Customer asset analysis compares each customer group across consecutive cycles (periods) and thus determines the health of the online store business.
This enables detection of trends and helps the online store formulate its strategy to improve those numbers.
Healthy online store business trends
Best-case scenario, a healthy online store business is one that measures the following in every consecutive cycle:
- Has more new customers;
- Manages to increase the number of repeating (loyal) customers;
- Loses less loyal and new customers.
Doing so the online store succeeds in servicing more customers that have less chance to defect (keep on repeating purchasing from the online store in the following cycles and thus become loyal customers).
This leads to more revenue, which itself leads to more resources for the online store to improve further its services and thus attract more customers in the following cycles.
Maintaining such a trend is the ultimate goal for every online store business.
Benefits of the customer asset analysis
The only way for an online store to know how healthy its business is and whether it is building loyalty and sustainability rather than losing customers is by running an ongoing customer asset analysis (read more in the article “Are you running a healthy online store business?“)
The power to know how a online store business really performs enables creating the right strategy. Being able to point out who its new, loyal and lost customers are, empowers an online store business to fulfill its strategic goals.
Got your attention?
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Learn more about cintelly’s customer asset analysis at cintelly.com
See a DEMO of the actual customer asset analysis platform from here.