Customer Retention Cathie Fowler VP Marketing, Zones

Methods to Identify Your Best Customers Lifetime Value Decile Ranking RFM: Recency Frequency Monetary Win Grow Own Customer Profitability and Potential

Customer Retention 1. Show Up! 2. Commercial Teaching 3. Layers of Engagement 4. Entanglement

Drivers of B2B Customer Loyalty

2. Impact the Purchase Experience Commercial teaching: Impart valuable information at each interaction  “Educates me on new issues and outcomes”  “Helps me avoid potential landmines”  “Helps me navigate alternatives”  “Provides ongoing advice or consultation”  “Helps me quantify financial value”  “Offers unique, valuable perspectives on the market”

3. Layers of Engagement Number of people involved in purchasing decisions has increased in the last 4 years  Past: 3 primary contacts. Today: 12 people  Increased role and influence of procurement Influence mapping and leveraging advocates  Standing, Coverage, Role in Oppty, Receptive to Change Increase connections internally and externally Loyalty tends to be stronger when relationship is with end- user not “check-signer”

4. Entanglement Provide a compelling value so that it becomes hard to switch  A “disincentive” to move your business  Beyond loyalty program: airline points  Banks offering online bill pay  ZonesConnect  Enterprise-level order management  Custom reporting capabilities  Software Licensing management