Leverage Customer Lifetime Value
Today's empowered customers are more demanding and fickle than ever. Maintaining or increasing marketshare requires businesses to understand as much as possible about their customers, continually improve their products and services, and be willing to adapt their business models to reflect the actual needs of their customers.
Avis Budget has committed to doing all of this. It implemented an integrated strategy to increase marketshare, which has yielded hundreds of millions of dollars in additional revenue. The initiative involved determining the value of customers, segmenting them, and offering tiered incentives to improve customer loyalty. To do this, its IT partner CSC applied a model that predicts lifetime value to Avis Budget's customer database, and then validated it using a multichannel marketing campaign and accompanying analytics.
The customer valuation data is now combined with other data, including rental history, service issues, demographics, corporate affiliation, and customer feedback. Avis Budget is also collecting and analyzing social media data. It has a team of social media specialists who respond to brand mentions. The company recently updated its website to further improve customer experiences, and it is using big data to forecast regional demand for fleet placements and pricing.
(Image: PublicDomainPictures via Pixabay)
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