There is a lot of discussion lately about "return on customer experience," an idea we think should be almost directly aligned with our Return on Customer concept. Buzz-Talk's blog has an excellent summary of many of the more recent findings in this field. Unfortunately, the "proof points" that get the most attention in Buzz-Talk's and other discussions of customer experience management have to do with comparisons of the overall economic and financial performances of CXP leaders and CXP laggards.

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Posted by Don Peppers | Permalink | Comments (0)

There is an interesting and well-informed article discussing Martha Rogers' and my Return on Customer metric in the most recent issue of the UK's Marketing Week magazine. David Reed, who covers the "data strategy" beat for the magazine, writes that while the data side of marketing has benefited greatly from a renewed attention to the financial metrics of success, particularly ROI, this might be a short-term blessing for the discipline. What he means is that ROI metrics typically look at campaign or product profitability figures, but have little to say about the long-term value created (or often destroyed) by marketing efforts. On the other hand, he says, the ROC metric does capture long-term value, because it incorporates changes in customer lifetime value (LTV). [Note, please that Martha and I have trademarked the terms "Return on Customer" and "ROC." We grant permission to people to apply these terms to their own analytics efforts when we deem the terms are used correctly.]

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Posted by Don Peppers | Permalink | Comments (1)

As organizations set new priorities for 2010, they must understand how continuing market changes will impact future business in order to keep their momentum going. Enterprises must find ways to balance achieving profitability by containing costs in the short term with delivering on customer needs and extracting the greatest value from a customer in the long term. This will help them weather the crisis without destroying their fundamental value, which is the value of their customer base.

Continue reading "Customer Strategist Yücel Ersöz:
4 Low-Hanging Fruit to Pick to Boost Sales in 2010" »

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