barcode printer in vb.net Increased Pro ts from Complete Data Warehouse in Software

Creation Code 3 of 9 in Software Increased Pro ts from Complete Data Warehouse

Table 10-2 Increased Pro ts from Complete Data Warehouse
Decoding Code-39 In None
Using Barcode Control SDK for Software Control to generate, create, read, scan barcode image in Software applications.
Painting Code 3/9 In None
Using Barcode printer for Software Control to generate, create ANSI/AIM Code 39 image in Software applications.
Increased sales Annual warehouse bene ts Annual warehouse costs Loss from warehouse $7,800,000 Pro t rate 30% Increased pro ts $2,340,000 ($3,500,000) ($1,160,000)
ANSI/AIM Code 39 Scanner In None
Using Barcode decoder for Software Control to read, scan read, scan image in Software applications.
ANSI/AIM Code 39 Creation In Visual C#.NET
Using Barcode creation for .NET framework Control to generate, create Code 3/9 image in Visual Studio .NET applications.
Table 10-3 Increased Pro ts from Data Mart
Code 3/9 Creator In Visual Studio .NET
Using Barcode maker for ASP.NET Control to generate, create Code 3/9 image in ASP.NET applications.
Encoding Code 39 Full ASCII In .NET
Using Barcode creation for .NET Control to generate, create Code-39 image in Visual Studio .NET applications.
80% increased sales Data mart bene ts Data mart costs Gain from data mart $6,240,000 Pro t rate 30% Increased pro ts $1,872,000 $ 800,000 $1,072,000
Draw Code 39 In Visual Basic .NET
Using Barcode drawer for Visual Studio .NET Control to generate, create Code 3/9 image in VS .NET applications.
Creating UPC A In None
Using Barcode generator for Software Control to generate, create UCC - 12 image in Software applications.
T h e C u s t o m e r L o ya lt y S o l u t i o n
EAN-13 Drawer In None
Using Barcode printer for Software Control to generate, create EAN-13 image in Software applications.
UCC - 12 Generation In None
Using Barcode maker for Software Control to generate, create USS-128 image in Software applications.
Table 10-4 Warehouse Costs
Bar Code Printer In None
Using Barcode drawer for Software Control to generate, create bar code image in Software applications.
ECC200 Generator In None
Using Barcode maker for Software Control to generate, create Data Matrix image in Software applications.
Step Build warehouse Amortize over 3 years Annual maintenance Customer communications Total Cost $6,000,000 $2,000,000 $ 500,000 $1,000,000 $3,500,000
2/5 Interleaved Drawer In None
Using Barcode encoder for Software Control to generate, create I-2/5 image in Software applications.
Barcode Scanner In Java
Using Barcode Control SDK for Java Control to generate, create, read, scan barcode image in Java applications.
shows the result of the 80 percent solution. You have converted a $1 million loss into a $1 million pro t increase by using an 80 percent solution. Where did the $3,500,000 annual cost for a warehouse come from Here is a simple way to measure data warehouse costs. If it costs you $6 million to build the warehouse, you can amortize these costs over 3 years, for $2 million per year. Maintenance of the warehouse will cost you at least $500,000 per year. Once the warehouse is built, you need to use it to communicate with your customers otherwise, what is the warehouse for Let s say that you spend only $1 million on customer communications per year. Then the warehouse will cost you at least $3,500,000 per year, as shown in Table 10-4. Whenever you or any of your colleagues at work come up with a proposal for a large direct response project, Web site, or warehouse, ask this question: How much could we save by concentrating on the easiest 80 percent and postponing the rest for later You will be amazed at the pro tability of the answers.
Generate Data Matrix In .NET Framework
Using Barcode creation for ASP.NET Control to generate, create Data Matrix 2d barcode image in ASP.NET applications.
Creating USS Code 128 In None
Using Barcode maker for Excel Control to generate, create Code-128 image in Office Excel applications.
Risk/Revenue Analysis
Bar Code Generator In None
Using Barcode drawer for Font Control to generate, create bar code image in Font applications.
Decoding Barcode In VS .NET
Using Barcode recognizer for VS .NET Control to read, scan read, scan image in .NET framework applications.
There is another way of cutting the costs of customer management besides using the 80 percent rule. That is applying risk/revenue analysis. For this to work, you have to have done two things: 1. Determined the lifetime value of your customers and divided the customers into high, medium, and low lifetime value segments. 2. Determined the likelihood that customers will leave you and divided the customers into high, medium, and low likelihood of defection segments. When you have done this, you can develop a simple table that looks like Table 10-5.
Barcode Printer In None
Using Barcode encoder for Font Control to generate, create bar code image in Font applications.
Reading Code 128B In C#
Using Barcode decoder for VS .NET Control to read, scan read, scan image in VS .NET applications.
C u s tom e r M a n a g e m e n t
Table 10-5 Risk/Revenue Analysis
Lifetime value High Medium Low High priority A priority B priority C Likelihood of Defection Medium Low priority B priority B priority C priority C priority C priority C
Assuming that all your segments are of equal size, you will have 44 percent of your customers in priority A and priority B and 66 percent of them in priority C. Customer management is not free. It costs money for communications, bene ts, recognition, and rewards. Why waste a lot of money on managing your priority C customers They are in one of two categories: 1. Of very low lifetime value to you 2. Very loyal and unlikely to defect In either case, spending a lot of resources trying to modify their behavior is likely to be a waste of money. This means that you can concentrate your energy on managing (modifying the behavior of ) only 44 percent of your customers, instead of 100 percent. This concentration on the real customer management problem will pay dividends in many ways. In the rst place, if you try to manage everybody, the resources you can devote to any one customer will be limited. Let s say that you have a customer management budget of $1 million and a customer base of 1 million customers. That is $1 per customer per year. You can t do much to change a customer s behavior with $1 per year. That s two letters and an email at best. Suppose you concentrate on only priority A and B customers. You will have $1 million to spend on 44 percent of your customers, which comes to $2.27 per customer. Even better, if you devote $4 per customer to priority A customers, you will still have $1.67 left for each of the priorit y B customers. You can do a lot more with $1.67 than you could have done with only $1, and much more with $4. This chapter presents several case studies of different methods of customer management. All of them look appealing, and they are, because they have worked well for some companies. How can you determine whether they would work for you
Copyright © OnBarcode.com . All rights reserved.