Tenure band

Years since a customer's first product, banded, within a segment. Product depth typically grows with tenure, so the norm is per band. Long-tenure customers well below their band's norm have been assumed fully served and never asked; they are the cheapest cross-sell in the base.

DefinitionYears since a customer's first product, banded, within a segment. Product depth typically grows with tenure, so the norm is per band. Long-tenure customers well below their band's norm have been assumed fully served and never asked; they are the cheapest cross-sell in the base.

On use, not holdings

Five held and two used is a two-product customer.

Trend across bands

Whether newer customers deepen faster or slower than older ones did is the firm's cross-sell motion, trended.

How it is used

Years since a customer's first product, grouped into bands within a segment, so that product depth is compared between customers of similar age.

Example

Customers of under two years hold a median of 1.4 products and those over ten years hold 3.6. A ten-year customer with two is the outlier.

Where it goes wrong

Depth compared across all tenures. New customers look thin and long-standing thin customers look normal.

Articles that use this term

Board and management reporting

Customer lifetime value from the ledger: the honest version

How to compute customer lifetime value from data a B2B company actually holds: contribution per year per customer from the ledger and cost to serve, expected remaining life from the company's own churn by segment and tenure, and the two together, with the range rather than a point, the identity that ties it to the ledger, and the four assumptions that turn an honest figure into a marketing one.

16 Sept 20263 min read Wallet share and penetration · Sports

From season ticket to hospitality: the members who bought once, and the ones who never were asked

How a sports organisation measures the path from its ticketing base to its hospitality and membership products, from the ticketing and hospitality ledgers joined on the customer: season ticket holders who have bought hospitality once, the ones who bought and did not return, the ones who fit the profile of hospitality buyers and were never offered it, the value at the norm of similar members, and the list per fixture of who to invite.

16 Sept 20262 min read Territory, capacity and quota planning

Ramp and attrition in the capacity plan: why headcount is not capacity

How a sales leader turns a headcount plan into a capacity plan from the team's own data: the ramp curve measured from past hires' attainment by month of tenure, the attrition rate by tenure band, the productive capacity each month that results, and the hiring dates that produce the number in the year, not the year after.

16 Sept 20263 min read Wallet share and penetration · Financial services

Tenure and depth: the ten-year customers who still hold two products

How a financial services firm reads product depth against relationship tenure, from the customer master and the holdings: products used by tenure band, the depth a customer of each tenure typically reaches, the long-tenure customers well below it, why they are the cheapest cross-sell in the base and the most likely to be assumed fully served, and the list per relationship manager ranked by the gap.

16 Sept 20262 min read How-to guides

The norm by industry: what 'similar customers' means on twelve desks

Every gap on this site is measured against a norm from the company's own best customers of the same kind, and what the same kind means changes by desk: same menu type and covers, same size band and sector, same tenure band, same rig count, same property type and market. This hub gives, for twelve industries, the fields that define similar, the unit of size the norm scales by, the population the norm is drawn from, and the guide for each.

16 Sept 20263 min read Board and management reporting · Financial services

Customer KPIs for financial services firms: ten measures that matter, each with its formula and the export it comes from

The ten customer KPIs a multi-product financial services firm should run on, each with its formula, the export it comes from and what it tells you: one customer view coverage, products held against the segment norm, products opened and unused, tenure against depth, segment migration, primary relationship indicators, balance and activity attrition, contact recency by value, complaint and service recurrence, and revenue concentration. Also the three measures most firms miss, the figures to drop, the identities, and who owns what.

17 Sept 20264 min read