Why Customer Retention?
Customer retention and
satisfaction drive profits. It's far less
expensive to cultivate your existing customer base and sell more services to
them than it is to seek new, single-transaction customers.
concept provides a relevant support for questioning product/market
strategies as well as underlying assumptions. You must examine radically
what constitutes real
value for customer by asking fundamental questions: what
need to be introduced or increased to meet customer needs? what value
offerings can be reduced or eliminated, because they do not constitute
real value for customers?
selling process never ends. Your relationship with your customer should continue to
grow. Focus on customer needs to make your
relationship marketing and selling
efforts mutually beneficial and to keep the sales rolling in.
People Skills 360
Measuring the Success
Customer attrition – the number of customer who
did not renew their relationship in any one trading period, expressed as a
percentage of the number of customers at the start of the month – is the key
indicator in measuring the success of your retention and
customer service program.
Creating Customer Value:
10 Lessons from Matsushita
Apply 80/20 Principle
80/20 Principle tells you that marketing should focus on providing a
stunning service in 20% of the existing products/services that generate 80%
of fully costed profits. It should devote extraordinary endeavor towards
retaining 20% of customers who provide 80% of the firm's profits.