The SCHEMA Value Estimator™ takes current key customer-related value and behaviour metrics to produce a segmented view of where value currently comes from. It shows the value of customers acquired and those being lost; how customer value grows and how much is spent on customers of differing values. It is built up from information provided by the organisation about its current win, keep, develop and cost performance.
Data to populate the model can come from transactional systems or shopper panels if direct transactional data is not available (TCF prepare the data collection brief for this exercise). Even in sectors where customers buy from a portfolio or repertoire of brands, this business case methodology can be very effective at challenging ‘received wisdom’ about customer behaviour and the role of engagement.
The Value Estimator allows scenario planning of the potential value uplift from adopting various customer engagement strategies. It enables the rapid testing of a wide range of ‘what-if’ scenarios against a set of industry-specific value drivers under the “Win, Keep, Develop, Manage Costs” dimensions upon which the module is based. A heat map like in the example above is often a good way of representing the opportunity. These scenarios can be developed directly with you, using assumptions and a realistic appreciation of the capabilities required for ‘uplift’.
The output provides more clarity on the scale of financial benefit and a view of the relative priorities of different engagement strategies. Organisations in the same sector often identify completely different priorities. In the Consumer Packaged Goods sector for instance, organisations have found priority strategies throughout the Win, Keep, Develop, Cost cycle.