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Customer

Portfolio
Analysis
Attrition-Migration Tracking
Attrition-Migration Analysis
 Enterprise-level success should be
mapped to depict value creation and
value loss
 Overlay marketing campaign results onto
the analysis marketing to visually describe
impact of marketing programs
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Key Definitions
 Attrition: How is a defected customer
defined?
 Typical defector is 12 contiguous months
with no revenue generating activity
 Align to your Strategic Profit Model
 Value Clusters: What are the natural
breaks in performance that enable focus
on top customers vs. others?
 Don’t over-work your portfolio at a macro
level, it will be too difficult to grasp
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Plan Ahead
 It’s not enough to know that there is value
creation and value loss
 What are the drivers of loss? The drivers of
creation? How do customers enter your
brand? Who is price sensitive? Who is not?
 Macro clusters can drive segmentation to
identify customers for brand penetration
 Migrate customers to new categories,
services to increase relationship
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Assembling the Data
 Attrition-Migration reporting looks at
movement in the customer file
 Understand the value of New Customers against
Lost Customers
 Understand the value of Improving Customers
against Declining Customers
 A quarterly look suffices
 Customer shift can occur with as little as a single
transaction
 Year over Year behavior on a periodic basis
 e.g. Prior Year v. Current Year through the end
of a fiscal quarter
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Framework
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How it Works
 Blue Cells – Consistent Base – customers
retained their value tier
 Green Cells – Nurture & Grow – customers
improved their value tier
 Purple Cells – New to File – customers entering
the brand
 Orange Cells – Downward Migrators –
customers losing their value tier
 Red Cells – Defectors – customers exiting the
brand
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How to Read it
140 Customers Retained Tier 1 PY to CY
Increased Sales: $80MM to $85MM
Increased Orders: 1.4MM to 1.5MM
5 Tier 1 Customers Defected
$0 Brand Value CY
$2.2MM Brand Value PY
15 Customers Enter the Brand Tier 1
$6.8MM Brand Value CY
$0 Brand Value PY
30 Customers Move to Tier 1 CY:PY
$9.5MM Brand Value CY
$5.6MM Brand Value PY
Total attrition rate is 4680 customers out of 19545 ~ 24% by count but 5% by sales
volume. The danger is in the orange – how many are already gone?
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The Basics Lead to Insights
 Attrition-Migration visualizes value patterns
 New Customers, Lost Customers, Growing
Customers, Declining Customers
 Segment the portfolio into manageable
clusters of customers
 The data is perfect for drill-down analysis
 Compare Tier 1 CY to Tier 1 PY
 Analyze Category Performance
 Analyze Discount Propensity
 Look at actual attrition vs. expected attrition
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Portfolio Analysis
 Even a basic approach to portfolio
analysis will help produce customer
metrics for the organization to focus on
 Common understanding of marketing
 Common understanding of customers
 Common understanding of goals
 Portfolio analysis will yield a customer
focused organizational alignment
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The Bryden Group, LLC
Customer Portfolio Analysis
Chris Daly
Founder, CEO
chris@thebrydengroup.com
www.thebrydengroup.com
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