Know-How Exchange : Strategy

To add on on point 3, what other customer data can be used for analysis and segmentation?

Well I have some points but I need some pointers from ppl who have working experience. So that I will know if I am in the right direction. If you are unable or don't want to share some pointers then Be professional and don't comment. The point for this forum is for people to share views and knowledge.

I think there is a serious miscommunication and misunderstanding caused by one person. And please before accusing anyone, get your facts right.

Yes, I am doing a paper, I am an intern in a marketing consultancy firm. So I have earned by Masters degree.

This paper is a personal white paper I am putting together and have done thorough research on the topic I am writing about. I have completed by research for B2B customers and have done a test vs control research to see if the strategy I am proposing is right.

The reason I asked these questions were because I find that the strategy for B2B if I do the same for B2C will be really expensive. So I am trying to see what other ways can be done to reduce attrition for B2C market.

Back to the question I was asking about, rwhite - In my B2B research to reduce attrition and promote activation. The thing that worked for these customers were:
a. Creating relevant dialogue with customers, e.g. listening to their issues (how? call the customers up and ask why?)
b. Throw in some promo offers to get customers to use your product

However, there are some customers who are adamant about not using your product because you screw up the first time. So that would be considered as a lost cause.

As much as I think the same can be done for B2C, I don't think it is feasible because it is really going to be an expensive campaign.

In terms of customer data, we can look at the customers purchase trends, e.g. average spending in a year vs current spending, however this can be inaccurate because a customer might make a big purchase in a month throughout the previous year, and this becomes an outlier.

So, what can be the best way to segment these customers? Considering that their purchase could be inconsistent, and the card they have now is just an alternative card they use.

I think the "serious miscommunication" continues...

i.e. What does:
"In terms of customer data, we can look at the customers purchase trends, e.g. average spending in a year vs current spending, however this can be inaccurate because a customer might make a big purchase in a month throughout the previous year, and this becomes an outlier."

Have to do with a paper on "attrition" ?

I gotta' be missing something or you're addressing several topics at once.

Are you trying to break out the customers that are WORTH spending more money on to retain? That's the only logic path I can see in your posit.

How do one identify attrition? Through analysing customers' spending, right? If your profit is growing is okay, but if it is declining then you need to know why.

When I meant looking at customers data, I analysed the spending of B2B customers for a bank (since I am interested to know about attrition in the card services). Afterwards I took the average spending of a customer and compared it against their current spending. If the customer has dropped in spending or not spent in the latest 3 months, it means that my customer is churning.

I want to know if this is the right way to analyse the data for B2B or B2C customer?

I think we have a language barrier here:

When you say the word "attrition", the marketing usage is usually CUSTOMER attrition, as in "How do I KEEP my customers?" Dollar volume decreases are usually thought of as declining revenue.

Okay, now that (I think) I know what you're talking about...

I think you need to work on your "givens" here to test their validity. Such as "IF the customer has dropped in spending or not spent in the latest 3 months, it means that my customer is churning". Not necessarily...

Have you factored in the economy. my friend? These conditions you posit may simply mean that your customer has stopped spending until the outlook improves.