The customer wheel

Customers are the source of real growth, and “customer-centric” businesses build a virtuous cycle called the “customer wheel.”

The customer wheel: Six elements of the virtuous cycle

1. Insights and segmentation
   1. Customer segmentation
   2. Customer insights
   3. Needs analysis
2. 2. Value proposition
   1. Product and category management
   2. Pricing
   3. Branding
3. 3. Customer acquisition
   1. Sales and channel effectiveness
   2. Marketing and effectiveness
4. 4. Customer experience [Service Operations]
   1. Customer service
   2. Call center management
   3. Store/branch/channel experience management
5. 5. Share of wallet
   1. Cross-sell
   2. Up-sell
   3. Usage marketing
6. 6. Customer loyalty
   1. Engagement
   2. Loyalty and retention
   3. Promoter system

At the hub of the sales wheel, a company looks to return: “More profit per customer; and then out-invests [maneuvers] competitors to grow…”