customer retention & extension matrix - …...customer retention is one of the best ways to...

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BUSINESS DYNAMICS (PRODUCING GOODS)

CUSTOMER DYNAMICS (PROVIDING SERVICES)

MARKET DYNAMICS (UNDERSTANDING NEEDS)

“An average human looks without seeing, listens withouthearing, and talks without thinking.” ~Leonardo da Vinci

TM

BUSINESSMODELMATRIX™CUSTOMER RETENTION & EXTENSION

Customer retention is one of the best ways to measure how

reliably your company is providing its service. Companies

with high retention rates (engaged customers) are perform-

ing up to 1.7 times better than companies with lower reten-

tion rates. Customer extension is about increasing the total

profit generated by a retained customer over a projected

period. Customer retention and extension are thus hugely

important to consistent growth and financial planning.

ATTENTION DESIREINTEREST ACTION ANTICIPATION HONOR HAPPINESS ADVOCACY

ATTRACTIONATTRACTION CONSIDERATIONAWARENESS CONFIDENCE EXCHANGE EXPERIENCE SATISFACTION SIGNIFICANCE

CU

STO

ME

R E

NG

AG

EM

EN

T

T IME

HIGH RETENTION

MEDIUM RETENTION

LOW RETENTION

M A R K E T I N G S A L E S D E L I V E R Y S U C C E S S

CUSTOMERLIFECYCLE

STEPS ANDSTAGES

ACQUISITIONDISCOVERY CREATION RETENTION EXTENSION

A I D A A H H AMOMENTS OF REFLECTION

MOMENTS OF ENGAGEMENTBRAND STAGES

LIFECYCLE PHASES

CUSTOMER STEPS