Customer Behaviour Tracking

In nearly all businesses with regularly trading customers, there is a pattern of characteristics and behaviour that provide a customer "DNA".

Monitoring this customer DNA and acting upon changes improves retention. Identifying, then acting upon migration signals in such a timely fashion usually retains the customer. In the worst scenario, it makes you aware of a customer who through changing circumstances beyond your control will no longer be doing business with you. The result is (up to six months) to plan and prepare for losing a large and valuable customer (e.g. in the case of changed customer needs), and part on better terms.

The characteristics and behaviour you need to monitor varies by sector, but obvious examples are: complaints/issues received, revenue in period, time between orders, number of orders etc. Less obvious examples could include customer contacts received and the inbound/outbound contact ratio.

Once a change in behaviour has been identified, you need to take timely action to 'test' the customer e.g. asking for participation in P.R., requesting a referral, or involvement in a focus session. It is important to test the customer with requests that they'd normally have no problem agreeing to, to tease out and uncover the problem.

This alone will usually confirm there is a problem, or help you gain understanding of a change in customer circumstances that can be managed proactively. From a customer's perspective the result is that your organisation appears more perceptive and proactive with regard to their needs.

In summary, customer behaviour tracking is not done for the sake of it. It saves customers, their revenue and profit contribution. All this is achieved by establishing a pattern to your relationship with that customer and monitoring that particular customer habit pattern, recognising a change, and acting upon it. A customer patterns may include:

• · Pattern of purchasing: frequency and value.
• · Pattern of paying.
• · Pattern of contact.
• · Pattern of complaints.

(Refer also to migration and retention).