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Consumers in Asia are becoming increasingly sophisticated, and marketers who have traditionally adopted a conservative approach to measuring and increasing individual customer profitability are now rapidly evolving. That was the key finding of the May 2011 survey of 1500 leading marketing professionals in Asia conducted by the Process Excellence Network in line with the Customer Profitability Asia conference.
Over 40% of the polled marketers indicated that they still use ARPU (Average Revenue per user/unit) as their sole measure of customer profitability. Commenting on this finding, Kraft Food’s Evan Williams said, “ARPU only reflects one business objective (revenue). In most cases, we need to look at other measures like volume movement to get a more complete picture of overall profitability.”
However, there is a growing realization among marketing professionals in Asia that not all customers are of equal value, and 88.2% of the polled professionals indicated that they were already using some form of advanced segmentation to identify their high value customers.
Yet Targeted marketing campaigns and multi-channel insights are no longer sufficient. For every customer that generates high profits, there are usually five others that end up being non-profitable, a reality that marketing professionals in Asia are increasingly coming to understand, and are actively strategizing for in 2011.
The top 15% of the polled marketers are now looking to tools like predictive analytics, customer value analysis and lean six sigma methods to increase individual customer profitability, while 54.1% acknowledged that their customers were now looking for more value for their dollar, and old price based promotions were no longer sufficient to get buy in in an increasingly competitive marketplace.
The survey findings are now available for complimentary download at the Customer Profitability Asia 2011 conference’s resource center at https://bit.ly/customer-profitability
To find out more about the Customer Profitability conference, please visit https://www.customerprofitabilityasia.com or email enquiry@iqpc.com.sg
