Do inactive or low-volume customers have additional sales potential beyond the realised sales potential? The aim of a Share-of-Wallet forecast is to find out which existing customers are worth reactivating.
Methodology
AI methods determine the actual sales potential of a customer using external data such as industry, employees and website content. The sales potential is calculated by using comparable sales of customers with an identical profile. This is how companies are identified that, based on their industry and number of employees, look as if they would, for example, achieve an annual turnover of 150,000 €, but do not do so. These companies must be addressed in a targeted manner.
Knowing the total potential of a customer
The concept of the Share-of-Wallet is about how much a customer can spend for a company in a certain product area. For this reason, it is not the past purchases in the company that are relevant for the forecasts, but rather the future potential. The share-of-wallet (value) accordingly describes the difference between the total potential of a customer in a certain product group and the actual turnover of a customer in the respective product range.
Result
The Share-of-Wallet forecasts make a significant contribution to the revenue exploitation of existing customers. This is often a considerable problem in controlling marketing and sales. The reason for this is that the actual total potential of the customer is unknown to the company. Sales is allocated to the unused customers in individual product groups by the forecasts. Thus a purposeful focusing on customers with high Potenzial can be obtained. In marketing, too, the share-of-wallet represents a situation that can be used to one’s own advantage with the right information.
The aim of the share-of-wallet is to find out which customers are worth reactivating or expanding in order to realise growth potential in existing customers. Through the predictive analytics applications of Dastani Consulting, revenue increases of 50% can be achieved through targeted reactivation. Discover your sales potential and convince yourself of our tools.
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