Economics’ Gift to Marketing
Most new products fail and most high-volume marketing campaigns generate slim returns. Companies trip up when they try to estimate customer demand through weak market research, extrapolation from the past, or plain instinct. Fortunately, the science of discrete choice modeling is a powerful antidote to ignorance. It allows companies to estimate demand and know exactly how and why customers will make decisions, minimizing the business … [ Read more ]
Content: Article | Authors: Eric Almquist, Martin Kon, Wolfgang Bock | Source: Mercer Management Journal | Subjects: Market Research, Marketing / Sales
Customer Churn: Stop it before it starts
For subscription-based businesses, even a small reduction in churn can have a huge impact on enterprise value. But traditional satisfaction data and attempts to rescue departing customers don’t get to the root causes that make customers want to leave. Instead, companies should invest in understanding which aspects of the customer experience drive consumer behavior, so that they can act to reduce churn cost-effectively.
Content: Article | Author: Martin Kon | Source: Mercer Management Journal | Subjects: Customer Related, Marketing / Sales