Customer EconomicsObservation 0022 min read
−14.6%
Growth is not the same thing as value.
A business can get bigger and weaker at the same time. The gap shows up first in the customers, not in the P&L.
Lifestyle Services
Lifestyle services grow on reputation and return visits.
Market context
Market context
Beauty, personal care, home and lifestyle services depend on bookings, rebooking rates and referral. Capacity, pricing and staff time decide the margin of each visit.
Commercial pressures
- 01Marketplace and booking-platform fees.
- 02Discounts to fill quiet periods.
- 03Rebooking rates that vary widely by location and staff.
Customer economics questions
The questions leadership should be able to answer.
Q1
What is contribution per visit after platform fees and staff cost?
Q2
Which customers rebook, and what drives it?
Q3
Where would price changes hold without losing demand?
Relevant capabilities
Where the work usually starts.
- 01Customer EconomicsUnderstand the quality and economics of the customers generating growth.Explore capability
Customer · Contribution · Repeat
- 03Revenue & PricingImprove revenue quality and capture more of the value being created.Explore capability
Transaction · Contribution
- 05Customer & Brand StrategyUnderstand how customer experience, preference and brand influence commercial value.Explore capability
Repeat · Future demand
Illustrative commercial problem
Illustrative · Not a client example
Busy calendars, weak rebooking
Illustrative pattern. A lifestyle services brand fills capacity through booking platforms. Few platform customers rebook, while referrals from existing clients, which cost nothing, receive no investment.
Also in Consumer Services
Intelligence
Related thinking.
Customer EconomicsObservation 0042 min read
1.2 : 1
The ratio that reads 3 to 1, and isn't.
An LTV:CAC ratio is only as good as the churn behind it. Replace assumed churn with observed churn and the green light can turn red.
PricingObservation 0062 min read
+75%
The discount that needs 75% more units.
Break-even volume on a promotion is almost always higher than the discount itself. At 30% off and a 70% margin, it is 75%.
A TCB engagement
10–15
Business days
Customer Economics Sprint
One commercial diagnosis and a clear 90-day path forward: the constraint identified, the economics diagnosed, the opportunity benchmarked and the intervention prioritized.
Bring the constraint.We'll give it direction.
Start with the commercial problem you're trying to solve. We'll identify the constraint, diagnose the economics, and determine whether there is a useful next step.
- 01Identify the constraint
- 02Diagnose the economics
- 03Recommend the right intervention
- 04Define the next move