Posted by Ajay Kelkar on Tue, Oct 28, 2008
As the economy slows down, it is even more critical to look at customer behavior closely to spot "likely defectors". Retailers have so much data about the way their customers are behaving that they can set up "trigger points" that alert the marketer that there is a change in the customers behavior. In fact at Cequity we believe that managing "downward migration in customer value" is far more important than "managing churn". The interesting part of this philosophy is that you do not need very advanced CRM systems to really execute this-even simple Microsoft Excel based "trigger points" can do the trick!
Michael Greenberg has this very interesting article on creating "inflection points" for spotting customer behavior changes.
http://chiefmarketer.com/crm_loop/database/fence_customers-03242006/index.html