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Green is Good: Navigating the World of Customer Migration

Dimitri Kassubeck


In our ongoing exploration of the dynamic wholesale landscape, we've discussed customer churn dynamics, dived deep into the impact of hidden margins brought by smaller customers, and mastered the art of price and quantity relationships with Recency Frequency Monetary (RFM) analysis. Today, as we continue to explore the subtle – yet important - shifts in customer behavior, we will talk about Customer Migration.

Customer Migration is a tool that helps us decipher those customers who are scaling back their purchase volumes yet are not quite on the brink of churning. These are the clients in transition, the ones who might just need a gentle nudge to become more loyal and substantial buyers.

The Matrix of Transformation

Using Moby Analytics dashboard, this week’s video introduces a game-changing matrix: easy to use, clear to analyze, and unparalleled to bring insights.

The matrix is simple: the amounts purchased by customers in the previous year are plotted along the y-axis, while their current year's purchases are shown in the x-axis. For new customers, an extra row is added atop the x-axis. This matrix classifies customers into distinct categories ranging from "Oncers" (those who've made just a single purchase in a given year) to "Very High" (those whose purchases total more than €40,000 in a year, in more than one purchase).

Now, you might wonder, what's the added value of this simple matrix?

Spotting the Transition

The magic lies in the colors. As you look at this matrix, the variations in colors across the grid quickly reveal the differences in purchases between two consecutive years, per customer. It's like having a color-coded map, guiding you through the movements of each customer, hence ‘Customer Migration’.

A customer who moves from "Once" to "Regular", for instance, is a shimmering emerald in your treasure hunt: green is good! It signifies that this customer has improved their game, total value-wise, since the previous year. Red, on the other hand, signifies danger: spotting customers downgrading their total value is a sign that they would need some attention before it’s too late.

The Power of Dashboarding

All the information provided in this matrix is available to most companies dealing with a substantial number of clients… if they know how to use it. What Moby’s intuitive dashboard does is make it easy to identify transitioning customers throughout a company’s extensive customer portfolio: the colors pop, and the patterns emerge, enabling you to effortlessly spot those clients who are on the path to becoming more loyal and substantial buyers.

In Conclusion

In order to retain a competitive edge in the wholesale business, every customer transition counts. Customer migration, symbolized by the green and red colors on our matrix, offers a unique way in which wholesalers can quickly and easily spot which customer relationships need some attention in order to enhance loyalty and profitability. Just as we've used data analysis and an intuitive dashboard to unveil the complexities of customer churn, hidden margins, and pricing dynamics, now it's time to do the same for customer migration! 🌟📊

Are you ready to embrace the power of customer migration and uncover hidden opportunities within your customer base? Reach out for a free demo by clicking below, and let's turn those reds into greens together!

Dimitri Kassubeck
Dimitri Kassubeck
Founder & CEO

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