Tag Archives: loyalty

How big data is remaking customer loyalty programs

Retailers spend about $2 billion every year to build and run loyalty card programs in the hopes of creating lifelong, devoted customers. However, those loyalty programs often fail to deliver as advertised. But now, advanced analytic techniques running on big data platforms like Hadoop promise to help retailers get closer than ever to realizing their “one-to-one” marketing dreams.

Part of the problem with traditional loyalty programs is the lack of good, clean data. When people sign up for programs, they often refuse to answer questions in the questionnaire, or they intentionally lie about their age, marital status, or whether they have kids. In many cases, all they care about is getting the 5 percent “Club Price” on broccoli at Von’s or getting the 12th tall coffee for free at Starbucks. They could care less about whether the retail has accurate data.

All that bad information meant companies often scale back on their plans of running highly targeted marketing campaigns, says Andrew Robbins, the CEO and founder of Paytronix, which helps companies execute customer loyalty programs.

“There are things every marketer in the world knows: You should segment your guest base, you should think of targeted rewards, and you should run targeted campaigns,” Robbins says. “We were finding customers weren’t doing that. They were just blasting everyone.”

Marketers had grown sour on loyalty programs due to a “relevancy gap,” Robbins says. Instead of sending offers to specific customer segments, the lack of trust in the makeup of those segments was leading to a shotgun approach. While a single man in his mid-30s may appreciate an offer for $5 off a kid’s meal composed of a grilled cheese sandwich and an 8-ounce apple juice, a more effective offer, research has shown, may involve a half-pound cheeseburger and a 16-ounce beer.

Age is a critical factor in marketing, but it turns out that people lie about how old they are. “About 10 percent of people lie, and another 20 to 25 percent won’t answer,” Robbins says. Getting information about children in the household is also tricky. “There are lots of moms who don’t want to tell you they have kids because they’re afraid for their kids’ safety. We ask these questions 50 different ways and all of them generate pretty bad data.”

That’s where big data comes in. Instead of taking the direct approach and asking people todescribe themselves, the modern marketer can use external sources of data and advanced analytics to infer things about her customers. Instead of asking customers to describe themselves, one can accurately ascertain facts just by observing their behavior. For example, if somebody buys a cheese pizza and a milk, “it’s much more likely to be a substitute for a kids meal than it is for an adult,” Robbins says. Similarly, mining for likes on Facebook and Twitter can reveal very detailed preference data for individuals.

Using this approach, a marketer can segment their customer base with 95 percent accuracy, Robbins says. The downside of this approach is that it requires more data. In fact, it requires about 1,000 times more data than the old approach, according to Robbins. That’s why Paytronix decided to abandon SQL Server as a data warehousing platform and invest in Hadoop.

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Big Data Validation

Today, Paytronix runs Cloudera‘s Distribution of Hadoop (CDH) on Amazon’s cloud service. SQL Server still has a role in serving insights directly to Paytronix’s customers, which includes companies like Panera Breads and Outback Steakhouse. But for advanced analytics, the relational data store is no more.

Before Hadoop, Paytronix only stored the demographic and loyalty data. But with CDH, a big data application from Platfora, the power of R, and BI tools from Pentaho, a relatively small groups of data engineers at Paytronix has the tools to dive inside the fine-grained data and pull out relevant patterns.

The bulk of the additional data is contained in the “checks,” or the customer receipts generated by each restaurant transaction pulled from the point of sale (POS) system. That’s the gold that Paytronix was after. But keeping track of all that data is no easy task, and requires powerful tools for validating and mixing the data.

“You want to make sure that each field within a check makes sense: How they paid the cashier, the table they sat at, the memo information that’s just typed into the check that says ‘Salad dressing on side–peanut allergy,’” Robbins says. “A lot of this information might be just typed into check in free-form fields.”

Being “close enough” is not good enough in this line of work, so Paytronix takes steps to ensure the data is accurate before a customer acts upon it. “When you have thousands and thousands of these stores all throwing data in, their data could look good. It could be 90 percent correct, but portions of it could be horrible,” says Robbins, a veteran in this field who has degrees from Princeton, MIT, and Harvard. “That’s a data validation problem, and if you don’t try to fix that before you mix it with something else,” you’re asking for trouble.

In the old days, Paytronix would have used ETL tools to build multi- dimensional cubes to validate the data before acting upon it. But that was a slow and time-consuming process. Instead, the company now speeds up the process with Platfora. “They have this really elegant tool that lets you point at raw data in Hadoop, define a cube in an abstract language they call it Lens, and then visualize it. That can be done by a business user, not a software engineer,” Robbins says.

Data in the Mix

“For most retailers, to get to one to one, you’re probably talking about 100 to 1,000 segments, overlaid with personalized communication,” Robbins says. “Maybe the strategy would be, for this segment, I’m going to give them a discount on the last item they bought. In the end, it’s a one to one strategy.”

This is where getting the small things right–like the peanut allergy, the preference for soy milk in coffee, or the preference for hand-tossed pizza–counts a lot. No one person or team of people can be expected to track all this data manually. But thanks to big data tools and technologies, companies can act on this data, and do so with confidence. For marketers looking to build a customer loyalty program, that’s a potential game-winner that can’t be ignored.

Source :datanami.com/2014/12/08/big-data-remaking-customer-loyalty-programs

Building true customer loyalty, one customer at a time

The single most important thing you can do for your business is to get to work building true customer loyalty, one customer at a time.

Stop fiddling with your pricing, stop tinkering with your technology, stop fishing for likes on Facebook. And start engaging with your customers one on one: Checking on them, hearing what they have to say, letting them know that their business matters to you, and that they matter to you.

Because everything changes when a customer becomes loyal. To the truly engaged customer, you are the only business in your category — the only shop in your particular marketplace. All the other brands and all the other vendors don’t even come into focus. Like someone in love, the loyal customer only has eyes for you.

At its root, creating loyal customers is about taking the time to learn about your customers individually and then systematically turning that knowledge into enduring business relationships. In doing so, you turn your offering into much more than a commodity—you turn it into a personal relationship.

The primary threat to a business today is the perception by customers that all you offer is a replaceable, interchangeable commodity. This hazard stalks your every move: No matter how solid your business’s advantages may appear right now, whether they are advantages of technology, geography, or branding, eventually your business model is going to be knocked off. And, in this era of accelerating change, it will likely happen sooner than you think.

Escape this threat of commoditization by creating enduring, loyal, human relationships with customers. It’s the surest way to escape market obsolescence.

The payoff is huge. A company of any size can build wealth and stability through customer loyalty. Businesses with loyal customers grow faster than others when times are good, and they have the most breathing room when times are bad. And that can make all the difference.

The reward isn’t only financial. As you begin building customer loyalty, you’ll find that your pride in your profession, your integrity, and your ability to build positive relationships (at work, and even in your own home) will also bloom. This happens naturally, because the process of earning loyalty involves caring about your customers, respecting them, and thinking constantly about their needs.

Spending this time being deeply attentive will tone your personality. Building customer loyalty will require your hard work and thoughtfulness, but it is under your control: While so many aspects of business are out of your control—exchange rates, international tension, technological changes—the single most important process, creating loyal customers, is in your own hands.

Source : forbes.com

Customer loyalty – meaning and its important concepts

Every supplier wants to create and retain a loyal customer who engages in continued profitable business with him. Customer Loyalty is the measure of success of the supplier in retaining a long term relationship with the customer. Thus customer loyalty is when a supplier receives the ultimate reward of his efforts in interacting with its customer. Customer loyalty tends the customer to voluntarily choose a particular product against another for his need. The loyalty may be product specific or it may be company specific. When a loyal customer has repetitive requirement of the same product, such customers may be described as being ‘brand loyal’. On the other hand he may also require different products of the same manufacturer. That is to say he makes significant purchases direct from the same supplier and that counts as the company specific loyalty.

Loyalty also means that customer is sticking to the supplier on certain grounds though he may be having other options also. It may be possible that the supplier may not have the best product or the customer may be having some problems with the supplier in respect of his supply of the product but the customer likes to ignore other options and prefers to continue with the same supplier as the customer thinks the supplier provides him more value and benefit than others. Such loyal customers tend to spend more money buy more, buy longer and tell more people about the product or supplier. This type of long-term customer loyalty can only be created by making the customers feel that they are number one priority with the supplier.

Some customers are inherently predictable and loyal, irrespective of the supplier with which they are doing business. They simply prefer long-term relationships with him. Loyal customers are predisposed to stay with one product or supplier, resisting competitive offers and also recommend the supplier to others.

In case the business is done directly the relationship is direct so also the loyalty. But if the selling is through two or more intermediaries then the loyalty has to be measured at different levels. In that case the end customer loyalty is influenced by the loyalty of the intermediate customers. Then the supplier has to focus his loyalty retention plan accordingly and has to judge and analyze the loyalties of the intermediaries. This process depends on what amount of importance he gives to each of the intermediaries and how much to the ultimate customer. But it is certain that well-managed customer retention programs are sure to give the ultimate customer loyalty.

True, the customers who are targeted by a retention program demonstrate higher loyalty to a business. Therefore such customer retention programs should include regular communication with customers, and provide them opportunities to remain active and choosing to do business with the supplier.

Loyalty is demonstrated by the actions of the customer. But it doesn’t mean that the customer satisfaction level can measure his loyalty. Customer loyalty is not customer satisfaction. Customer satisfaction is the basic entry point for a good business to start with. A customer can be very satisfied with the deal and still not be loyal. On the other hand a customer may not express satisfaction but wants to remain loyal to the supplier due to some reasons which keeps him benefited from that supplier. For the same degree of satisfaction, the loyalty level may also be different for different suppliers.

On the other hand, loyalty should not be considered as just an attitude. Customer loyalty should have a direct connection to a company’s financial results. The supplier should be able to plan a clear and direct economic benefit of some kind, as the result of the strategies and tactics he employs to increase its customers’ loyalty.Measuring customer loyalty and developing a retention strategy are of great importance to an organization’s success.

Source : www.managementstudyguide.com

The loyalty ecosystem

In nature, ecosystems are dynamic. The denizens of an ecosystem don’t simply live peaceably side by side; they exist in symbiotic harmony. They benefit, interact with and feed each other. And to survive, ecosystems adapt to change. Because of these characteristics, an ecosystem is the perfect metaphor for a customer loyalty strategy.

High-frequency merchant environments with consumer loyalty programs — such as grocers, pharmacies and convenience-fuel retailers — are perhaps the strongest customer ecologies. They teem with customers, products and purchases, all leaving their imprint on the loyalty biosphere. Customers who use your services every week instead of once a year represent a profound opportunity to redefine how you go to market by building an ecosystem based on insight into your customers’ needs as derived from analysis of purchase behavior. To create an information and segmentation structure that makes your loyalty ecosystem come alive, consider these best practices:

1. Understand your segments-Every customer-management system starts with analysis to develop comprehensive customer insights. What are your customer segments and their current and potential value? What profitability drivers will truly impact your ROI? What categories of products do consumers buy?

2. Segment ahead of the curve - Expert analysts can take this approach a step further and build segmentation strategies by identifying changing needs in some cases, before the customer is even aware of the need. What offers can you deliver that anticipate what products a consumer might purchase for the first time? This approach creates symbiosis by returning emotional value to the customer.

3. Enhance the customer environment - Another important element of the loyalty ecosystem is the customer experience. Is your retail biosphere designed to grow the quality of your customer relationships? Needs-based segmentation offers a solution. Suppose your segmentation analysis reveals a significant index of convenience purchases. The “Time-Starved” segment makes up the lion’s share of your most valuable customers. Why not design cross-functional strategies to drive a better experience for customers who aren’t going to spend a lot of time impulse shopping?

Source : www.chiefmarketer.com

Losing loyalty? 4 biggest missteps

There is more and more focus on keeping the customers you have; helping them to think about your brand each and every time they make a purchase. And now that those customers have become loyal, the chain of marketing messages has to be different.Make sure you’re not making these four mistakes that can hurt brand loyalty.These to my mind are four of the biggest mistakes that marketers make that lead to a loss of loyalty:

1. They can’t make the transition from sell to story – some brands put product targets ahead of relationship targets in the mistaken belief that if they sell more, they will earn greater loyalty. They keep using the same sales model with people who are already loyal to them in the belief that they have to keep convincing consumers to buy again and again and again. But, once a strong relationship is established, revenue is one of the outcomes of that relationship, not the qualifier, and that’s where more brands need to focus their attention. No loyal buyer wants to feel that they are only as important as what they last paid for. And no-one wants to feel taken for granted. Brands need to become much more adept at telling stories that keep loyal customers intrigued and wanting to become more involved. After the initial challenge of conversion comes the deeper challenge of immersion.

2. They’re afraid of conversation – many brands are afraid of debate and honest discussion. Conversation concerns them. It feels like a distraction from the real issues of getting out there, competing and making money. I’m always intrigued by how readily marketers agree that word-of-mouth is the most powerful way of winning business, and yet how so few seem to act on the logical extension of that thought – that WOM must be the most powerful way of keeping business.

3. They think a community is a high-maintenance relationship – so many brands say they welcome feedback when in fact they don’t. They listen to it. They probably record it. But that’s as far as it goes. Actually, they think of their front line as a defensive line and their frontline staff as a resource that is there to limit damage, absorb or deflect criticism, and basically function as a human answer machine service with scripts and carefully cured responses. But if you don’t give your people the permissions and the tools to genuinely interact, to ask questions and to feed back what they hear into the organization, you are paying a lot of people a lot of money to frustrate everyone by the book. It may look right operationally. It may function correctly by the numbers. But its greatest efficiency, in reality, is the streamlined manner in which a regimented contact center destroys the desire for interaction. In time, people switch off.

4. They stick with what they know and they tell themselves it’s what people want – the last thing any brand should do is treat its loyal fans as a static constituency, and yet so many do. The more they get to know their consumers the more they look to categorize them in ways that feel familiar. Problem- people are just not that simple. If you fail to test the boundaries with consumers who love the brand, all you continue to offer them is more of the same. That’s not exciting. The challenge for any brand is to bring its loyal customers with it as it evolves, so that they feel involved and included based on what they know, at the same time as they feel stimulated and intrigued by the new things that are presented to them.

Brand loyalty is basically about keeping people interested. It’s about elevating your loyal customers’ heartbeat over a sustained period of time. That’s harder than it sounds in a world teeming with distractions.

How can you achieve customer loyalty

Customer loyalty may not be what we think it is.  Most people or companies claim to have great customer service and customer satisfaction scores, which they think leads to loyalty. However, these scores may be misunderstood.

On the contrary, customer service and customer satisfaction may not lead to loyalty. They just mean that customers, loyal or not, are happy with you. That said, customer service and satisfaction is the price of entry.  You won’t get loyalty without it.

So, let’s define what customer loyalty means. Is it a repeat customer? If so, does the customer go anywhere else, or are they 100% loyal – or a better word might be “married” – to you?

One of the consumer is very loyal to one of his favorite restaurants,The Pasta House. He goes there for lunch about every week or two.  What about the rest of the days of the week?  He goes to other restaurants.  So, is he a loyal customer?

The above example ties into the concept of “wallet share” versus “market share”.The concept of market share has to do with how many of the customers that are able to buy product actually buy it.  For example, if there are 100 customers in a given area that could buy product, and 60 of them buy it, then there is 60% market share.

Wallet share takes the concept of market share to another level.  Of those 60 people who admit buying, how many of them will still buy from someone else?  If they only buy from you, then you have 100% of their “wallet share.” If they split their loyalty between you and someone else, you only have 50% “wallet share.”

At the highest level of loyalty, customer only buys from you.  In other words, they give you 100% wallet share.There are several considerations to think about before defining customer loyalty. They are as follows:

1. Define how often your customer buys what it is you sell (product or service).  This doesn’t mean how often they buy from you.  It is how often they buy what you sell, from you or your competition.

2. Based on their frequency of buying, even if they buy from a competitor, would you consider them loyal?

3. Do they ever buy, even once in a while, from your competition?

4. Following up on question 3, if they do buy from a competitor, why?

5. Again, following up on question three, if they do buy from a competitor, what can you do to get them to buy more often, if not always from you?  (Or at least more often from you than they currently do?)

6. What other questions should you be asking yourself to determine if a customer is loyal and how you can earn more wallet share, if not 100% of wallet share?

It is important to note that some businesses don’t need 100% wallet share to consider their customers loyal. Back to The Pasta House restaurant example above, Kim Tucci, the restaurant chain’s co-founder, says, “We would consider a guest loyal if they came back two times a month.  The customer has so many choices of where to go, the type of food and more.  If they want a hamburger, they should go to their favorite hamburger restaurant, but if they want a bowl of pasta, I hope they come to us.  That is how we define loyalty.”

Creating loyal customers is a far more cost effective strategy than bringing in new ones.  Many studies claim that it can cost five times more to acquire a new customer than keep an old one.  If that is the case, then loyalty – even at a lower wallet share – is a very smart strategy.

So, define what loyalty is to you. Determine what percentage of wallet share makes a customer loyal.  Then strategize on how you can create more loyal customers and increase your wallet share.

Source : www.hyken.com/customer-loyalty/how-can-you-achieve-customer-loyalty/

Companies focusing more on customer rewards in tough economy

In this tough economy, companies are finding ways to entice customers to shop at their business. One method that has been proven effective time and again are customer rewards programs, otherwise known as loyalty appreciation.

Whether it’s a big corporation or a small-business, companies attempt to show their appreciation for their customers. By doing this, businesses hope to draw in a larger clientele and generate a bigger bottom line. Of course, both sides of the counter have different definitions of customer appreciation. Nonetheless, it’s been effective.

There are a number of rewards programs that are offered to customers. When it comes to a large company, the store may offer free items with a $50 purchase or provide notifications for upcoming sales or promotions – others have things like Air Miles and a points system.

For small businesses, it may not be as lavish, but it still could be effective: free shipping, membership upgrades, personalized messages through Facebook and Twitter, thank you notes, perks and more.

According to Inc. magazine, companies in the United States spend more than $2 billion annually on loyalty programs and it appears to be helpful. Studies have shown that the average household is a member of 14 different rewards programs.

By remembering a customer’s business, providing dependable products and services and doing things that competitors don’t can certainly lead to a beautiful friendship between business operator and customer.

Source : http://www.digitaljournal.com

Mid-market turns attention to customer loyalty

The top strategies for mid-market businesses over the next twelve months or so are increasing customer loyalty and reducing operating costs, according to a survey of over 2,000 decision-makers in mid-market businesses, conducted by research firm Populus.

More than one third of respondents saw increased customer loyalty as the means by which they would grow their business over the next year. The study interviewed decision makers in businesses with 100 or more employees as part of its annual Business Index Survey, which gathers insights across 18 countries around the world.

“As confidence for mid-market companies reaches new highs, businesses are planning for growth by focusing on increased customer loyalty,” explained Jayne Archbold, CEO for Sage Mid-Market Europe. “We also found that Europe’s mid-market companies are pinning their hopes for growth on strengthening their product and services portfolios and marketing.”

Customer loyalty
By focusing on customer loyalty, businesses are demonstrating realism and pragmatism. They have understood the huge value that happy customers bring. Gaining new customers is expensive and time consuming, and customer churn means that is multiplied many times over. Dissatisfied customers can also spread the news of their unhappiness far and wide and a negative sentiment can have a huge effect on profitability.

A content customer is your advocate: the happiest will go out of their way to sing your praises, recruit new customers and provide constructive feedback on your products and services. There are knock-on effects too. Employees who feel they’re doing something worthwhile, and who work with satisfied, positive customers, tend to stick around longer – and provide better service, because they’re happier doing their job, too.

Customer loyalty really comes into its own when a business is in a growth market. Customers spend more – making them more valuable and helping to boost growth organically. It also requires less outlay than recruiting new customers.

Being customer-centric
There are many reasons why a culture of customer centricity makes even more sense these days. The emergence of the social customer – who can react to a bad experience on social media with catastrophic repercussions – is one reason why customer satisfaction has become a mission-critical issue for many businesses.

Driven by technology opportunities people want to communicate and collaborate more in business, as they do in their personal lives. Gartner predicts that by 2016, more than 1.5 billion people will use social networks. There is a huge opportunity here for customer loyalty.

Customers are interacting with brands and businesses, creating deep attachments, and communicating more often. This gives connected companies more insight, enabling them to create yet richer interactions and better communications, products and services. Beginners on this journey will find that by broadening their presence on social media they create an extra avenue to generate interest. If people can find the business in multiple places they are more likely to make that connection between the brand and their need when they are ready to buy.

Then the customer service team can use the increased visibility into the customers and make every agent more productive, empowering them to upsell and cross-sell.

Customer centricity is not just about offering great service, it means offering a great experience all the way through the customer journey, from initial awareness through purchasing and finally the post-purchase process. Companies that are committed to customer centricity focus on what the customer wants and needs, and develop products and services around that.

Communication and collaboration is quicker, easier, and far more natural than it ever was before the advent of modern collaborative tools. It’s not just for customers though. When staff are socially connected they also become more engaged and more productive.

Source : www.thewisemarketer.com/news

Benefits of loyalty initiative

When justifying a loyalty initiative, too many executives focus ONLY on the financials, but there are major business benefits – each a competitive advantage – that only a loyalty initiative can provide…

The biggest business benefits that every loyalty programme operator should expect to reap – and use to justify continuing and expanded investment in the programme – are as follows:

1-Retain existing customers -The effect of the customer retention rate on actual, bottom-line customer numbers cannot be over-estimated. In five years, a firm with a 70% customer retention rate will have lost two to three times as many customers as a firm with a 90% retention rate.Not only does a loyalty programme provide a practical, hard reason for continuing to buy (the accumulation of points toward a reward, or higher levels of service) but it also provides information about the customers that allows their needs to be met more efficiently and effectively. This in turn makes them more likely to remain customers. In addition, loyalty programme operators often report that, once a customer starts redeeming rewards, enthusiasm and engagement both increase.

In addition to simply retaining customers, the data from a loyalty programme can be used to better cater for their varying needs. Companies typically use this data to segment their customers for the purposes of marketing, sales and customer services. But customers are more complex than that. Their needs and desires differ from time to time, from occasion to occasion, and depending on the reason for the transaction. In other words, the customer is ‘divisible’. Thus marketing can go deeper than one-to-one; it can identify customers’ changing needs and then provide perceived benefit venue-by-venue and situation-by-situation.
2-Acquire new customers -A loyalty programme should attract new customers to the business; how effectively will depend on how exciting and how valuable the rewards seem to be to the target audience. Acquiring customers is no doubt essential to any business, but it can be expensive if compared to nurturing existing good customers. It should not be the central focus of a loyalty programme; there are cheaper and more effective ways of acquiring customers. However, it is generally far more profitable to retain and up-sell existing customers than to attract new ones.

Using a four-year profile of new customer behaviour from a leading retailer, loyalty expert Brian Woolf has shown that, one year after becoming a customer, only two out of each thousand new customers (0.2%) were in the top customer segment and only twelve (1.2%) were in the second segment. Over half were inactive. Between 95% and 96% of the new arrivals were either in the lowest segment or had left by the end of the year. However, quality of new customers acquired can be raised by careful use of the existing data of a loyalty programme. This can be used to establish the demographic particulars of existing best customers, and then to target prospective customers with similar demographics in acquisition campaigns.
3-Move customers up-segment -By grading rewards (for example, offering extra points for exceeding a specified spend threshold in a time period), customers can be moved up from one spend level to the next. A good example of this is The Continuity Company (TCC), a provider of best customer marketing programmes, which skews its rewards to encourage lower spending customers to move up through the spend segments. In one of the company’s recent case studies, the top spending band’s contribution to sales increased by 41%, the next band down increased its contribution to sales by 45% and the lowest spend band decreased its contribution to sales by some 7%

4-Deselect unprofitable customers -It can be more profitable to lose bad customers than to gain new ones. Cherry pickers (who buy only your discounted lines and nothing else) cost you money, as does any low-spending customer. They cost more money to service than they generate. Designing a loyalty programme that rewards better customers without rewarding this segment at all gives them less reason to stay.Gary Hawkins, CEO for US-based Green Hills Supermarket, has found that only around three in ten customers actually generate enough profit to cover the cost of servicing them. What about the other seven? Does it make sense to keep them as customers? To a certain extent it does: if they can be identified through a loyalty programme, efforts can be made to move them up through the segments and hopefully they will become more profitable customers. Moreover, while possibly not generating profit directly, they are contributing to the size of the business and also contributing to fixed operating costs (rent, rates, utilities etc.).

However, the ‘worst of the worst’ could probably be profitably lost. So far, it seems that only financial institutions have gone as far as actually closing unprofitable customers’ accounts. The generally adopted approach by other businesses is simply not to reward them in any way and hope that they will leave.
5-Win-back defected & churned customers -Customer win-back expert Michael Lowenstein says that the success rate in approaching ‘lost’ customers can be three to four times as high as it is when prospecting for new customers. For example, the rate for converting prospects might typically be 5%, while that for reactivating inactive customers might be as high as 15-20%.