We have worked with many clients – large, small, commercial, funded – all with a need to engage audiences. Engagement leads to revenues and revenues fund an organisation to continue its great work.
From our work we have recognised that past customer behaviour is the best predictor of future attendance. In data terms, the most significant predictors of behaviour are RECENCY and FREQUENCY.
For example, of customers who have made a second visit in the last 18 months 35% are likely to come back, while of those who have only attended once, only 10% return.
So driving up frequency is key to generating revenues and improving the return on investment of attracting your customer in the first place.
What difference will it make?
We have found by using recency and frequency to define customer segments and manage the customer journey, organisations can achieve an 8% increase in ticket revenues.
So, if ticket turnover is £1m, that’s an £80k bonus! – that could mean more staff, a refresh of the bar area, a new project to engage young people or the difference between losing a much-loved community project and keeping it.
SMART & ACTIONABLE
Using a data-driven approach to segmentation makes it possible to map and influence the customer journey, providing a structure that adheres to SMART principles:
Specific: set targets based on actual behaviour so no room for subjectivity
Measurable: dynamic metrics that can be easily measured (you could start today)
Achievable: uses data that is already collected
Realistic: can be delivered within current resources
Timely: impact goals within a specified timeframe
Recognising the dynamic nature of the customer relationship with your organisation means you can identify which stage of engagement they are at; tailoring communications for maximum results whilst offering a personalised level of service. It’s a win / win.
By taking steps to drive up these two critical predictors of future behaviour, you will have a positive impact on the revenues supporting your organisation over time, building sustainability.
Find out more about managing your customers using behavioural segmentation