There is a lot of mention of “Big Data” in the media. Big Data refers to the data that companies have on their customers. Big, enterprise size companies have all sorts of stuff in various company databases- some good and some crap (think file boxes stacked up in the old days). There is no question there is some gold in there and companies are now trying to figure it all out. For enterprise-sized companies it makes sense to make sizable investments in tools to help then analyze and monetize their different databases.
- They had 1500 customers that purchased at between $5000 to $10000 over the past 18 months.
- Only the top 100 customers are contacted by the company on a regular basis.
- There is no process to routinely contact customers in place.
- The company uses catalogs and e-mails to notify existing customers and prospects about new products and purchase opportunities.
So I asked the CEO if he believed there would be an increase in revenue if we put a simple system in place to call these 1500 customers over a two-month period. He said absolutely. So we are putting a plan in place for 10 employees to reach out to these customers and notify them about upcoming special opportunities. That’s it, nothing fancy. I feel pretty confident that they should see a 5-10% increase in revenue over the next six months from this initiative alone.
This is a great example of turning “low hanging fruit” data into revenue. Most companies have opportunities like these with their current and/or old customers. It is just a matter of giving it some thought, putting a plan together and executing. I believe that most companies are not doing this because 1) they are reactive vs. proactive and 2) their salespeople are focusing on new customers at the expense of old or current customers.
P.S. – As a side note I can tell you that this business does not have a sophisticated CRM or automated marketing platform. I believe that after the calls are made, implementing a more robust CRM system and/or automated marketing initiative will lead to further gains from existing customers as well as prospects.