PAPERmaking! g FROM THE PUBLISHERS OF PAPER TECHNOLOGY Volume 1, Number 1, 2015 Market Research versus Desertion Monitoring What is researched? Reasons for exit including external causes outside the organisational control, such as: competition market penetration, customer profile, organisational image, and the decision making process pertaining to leaving, among others. The purpose of the investigation is diagnosis. What is monitored? The effects of modifying a root cause. The idea of monitoring is to measure the impact and effectiveness of addressing a desertion driver. Monitoring ensures that retention measures are targeted at root causes. Desertion rate calculation The calculation of desertion rate and adjusting the desertion rate is done through a formula mentioned below.
where:
DR = Desertion Rate. EDR = Effective desertion rate (Customer Rate). N = New customers joined in period of analysis. CAb = Active customer at the beginning of the analysis period. CAe = Active customer at the end of the analysis period. CR = Customer left during the analysis period.
Considerations in the Measurement Process The following considerations are recommended to establish benchmarks and baselines for retention measurement. 1. Set a target What is the number you wish to reach? If you do not have a goal, then why monitor? 2. Observe the curve and not the measurement itself The curve indicates trends; an isolated number shows only one piece of information that could be contingent on other factors or temporary.
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Article 5 – Marketing (customers)
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