Why it's important
Understanding the value that each channel and customer segment contributes, as well as the cost of these channels, is key to highlighting opportunities for revenue growth and cost reduction. As the shift to digital becomes more prominent, it is important to understand how effective this channel is at acquiring new customers and selling to the base. The Consumer Value Diagnostic Benchmark helps participants address critical points across products and sales channels such as:
Customer base mix:
- What is the customer base mix and how has it evolved?
- What is the product mix between households, customer accounts and subscriptions?
- What is the average value of the customer base and what % is recurring revenue?
Sales & funnel conversion:
- How much are consumers buying, at what value, in which channel and how efficiently?
- What are the conversion rates across all sales channels?
- What proportion of sales is made through digital channels?
- Which stages of the digital sales funnel can be improved to drive digital sales?
Marketing effectiveness:
- What is the spend (OPEX) as compared to peers and what % is spent on digital channels?
- Which sources is marketing allocated to and how efficient are these sources in driving visits and orders?
- Which marketing source has the best conversion rate?
- What is the cost per visit and cost per sale of these marketing sources?
Channel effectiveness:
- Which channels are driving higher ROI’s?
- What is the breakdown of OPEX for each channel?
- How does the revenue generated in each channel compare to channel OPEX?
- Are physical channels over-staffed relative to the customer base?
- How efficient are store and contact centre FTE’s at sales?
What the study provides
- Compare your performance against relevant regional, and global leading peers, using aggregated, non-publicly available data
- Set realistic targets based on competitor performance and prioritize the actions to achieve them
- Learn from and implement best-practice techniques and processes across digital sales and marketing
- Build fact-driven business cases for additional digital investment and advise executives of the need for change
