Active Customers
Table of Contents
What is Active Customers?
A customer of the firm if he does repeat purchase of that firm’s product and is expected to buy at least once in every 12 months duration. These are the people who maximizes the company’s revenues and thus the company’s works upon to retain the customers by enhancing their experience and providing discounts.
6 Types of Active Customers
Recent Purchases
Customers who have made a purchase recently. The definition of recently differs by industry. A common definition is at least one purchase within the past 12 months. Durable goods may define a longer period.
Loyal Customers
Customers who make frequent purchases. The definition of loyal customer differs by industry, organization and product category. For example, a fast moving consumer goods firm might define a loyal customer as 5 purchases in 6 months.
Support & Service
Customers who pay for a period of support, service and/or maintenance. For example, a mobile device with a 3 year support plan. A customer who has separately paid for support remains an active customer for the duration of the support.
Product Subscriptions
Products that are automatically purchased on a subscription basis such that they represent recurring revenue. For example, an ecommerce company that allows consumers and businesses to purchase basic goods on a monthly recurring subscription.
Service Subscriptions
Service subscribers who make automatic payments until they decide to cancel the service.
Contacts
Contractual purchases such as a consulting contract. This is the most stable form of active customer as they may face penalties for canceling the service. Contacts are most common amongst business-to-business services.
Steps for Active Customer Experience Management:
Step 1. Customer life cycle stage identification: From the first purchase which the customer makes to reach the products he becomes a lead, till he stops purchasing that product, the customer lifecycle has several stages. By helping to bring in more customers, he can becomes a strong follower of the products and services rather than leaving it. The customer life cycle stages are – To Reach, To Acquire, To Develop, To Retain, and To Inspire. At each stage it is useful to group customers & classify as their needs and expectations differ very rapidly. Deemed to me important business processes vary on which stage of the lifecycle they are in.
Step 2.Determine Business Processes that are Customer Facing: Customer gets definitely impacted, even if those processes that may or may not require to contact the customer directly. They differ for different companies and industries.Inorder to develop a systematic structure to maintenance, manage customer relationship initiation, and termination.
Step 3. Identify Customer Facing Processes Key Events: In order to find customer’s opinion about the organization by their experiences and by providing advice and assistance and using customer insights.
Step 4: Configure & Manage Alerts: In the customer life cycle with every particular event, appropriate action is associated in the form of alerts.
Step 5: Develop A Plan for Customer Action: In order to avoid the risk of under-serve’ to high valued customers and ‘over-serve’ to low potential customers
