|
| RealMarket Stock Index |
| RMSI | 60.65 |  | 1.24% |
| Dow Jones | 12,871.75 | | 0.16% |
| Nasdaq | 2,424.40 |  | 0.06% |
| S&P 500 | 1,396.37 | | 0.11% |
| Top Gainers |
| SAP | 51.2 | | 57.90 |
| HP | 47.59 | | 49.78 |
| NCR | 24.34 | | 47.99 |
| Top Losers |
| eOn | 0.3 | | 0.78 |
| Selectica | 1.34 | | 1.75 |
| Broadvision | 1.04 | | 2.20 |
| Complete Stock Index |
| As of close 04/28/08 |
|
|
Book Excerpt
(Source: Integrity For You)
The ABC's of Customer Retention
Basics- Keeping It Simple
Written by: Terri Schepps
You don't need elaborate schemes or plans to reach your customers. You need a plan and you need to keep it simple. One of the most important resources a business can tap into is feedback from customers. Unfortunately, many businesses don't pro-actively collect feedback. Those that see the importance of feedback are challenged in how to develop appropriate ways of getting feedback and using feedback effectively.
Facts:
- It costs more to get a customer than to keep a customer
- Active customer follow-up is easily pushed aside by weightier issues
- Only 1 out of 20 unsatisfied customers will contact the business to complain
- Businesses rely more on inbound contact
- Businesses miss opportunities to educate customers
- Very few businesses house out-bound pro-active contact
1990 Harvard Business Review: Zero Defection: Quality Come to Services': by Frederick Reichheld and Professor W. Earl Sasser:
- 5% more in customer retention, a company can almost double its profits
- 70% customer retention rate will loose 2 to 3 times as many customers as a firm with a 90% retention rate
Customer retention has the attention of business leaders and leaves most wondering how other businesses are approaching this seemingly complex business function. Researchers, analysts and consultants have developed multiple selections of theories, programs, methodologies and practices for customer retention. Today businesses readily share their experience through interviews and PR opportunities.
In simple terms, customer retention is focused on the customer and the customer's experience.
The question is how can today's businesses compete with the sophistication of big corporate America? These powerful and resourceful companies have the capability of hiring teams of retention or relationship experts, installing sophisticated and costly CRM (Customer Relationship Management) software programs, providing employee training and coaching classes; while at the same time offering lower prices. But even with all the right tools in place, these businesses are challenged because of the complexity of relationships.
The reality is a business, whether retail or service, large or small, can have the advantage over its competition, if they can understand one logical concept:
Businesses have the upper hand in capturing and increasing market share through positive customer experience initiatives.
Customers place value on service and they expect more when they pay more. A positive customer experience is the key to success ƒ{ the simplified approach to retention. Any business can deliver a positive customer experience by properly utilizing all sources of communicationƒ{staff, direct mail, phone calls (inbound and outbound), web site, emails, advertising and events.
Customer experience begins during the sales process. Marketing your product or service must present the expectation of a positive experience. Many businesses undersell its business and/or the value they offer. Why should a consumer or business buy from you and not from another business? What makes your business stand out? This is why having a target audience will make this experience better. Industries love vertical sales because from the marketing to the service or product, it's all been focused on their interest and specific needs. Their industry specific terminology is used throughout the process. This is the easiest way to deliver exceptional customer service and experience.
Customer retention does not have to cost a fortune.
However, it must be pointed out that 'you get what you pay for.' Businesses are willing to spend large amounts of time and money to obtain new customers, but are unwilling to spend a fraction of that amount to keep their existing PAYING customers. Customers are a great investment, both before and after the sale! When businesses are committed to positive customer experience, retention improves, referrals improve and sales increase. It's that simple!
The Three R's in Business:
Referrals, Retention and Revenue!
How should a business approach follow up with its customers? The intent of following up with customers should never be about selling them more. It should be about making sure they are satisfied, welcoming their feedback, asking for on-going business and requesting referrals if deserved. Businesses need only put themselves in the customer's place to realize the importance of delivering an impressive experience its customers won't soon forget.
Retention occurs when delivering the right customer experience along with the product/service sold. Businesses can simply approach customer retention by doing what comes naturally with passion, conviction and common sense. The payoff is watching your business grow!
Businesses do not always place the proper value on their customers. Becoming proactive with customers is the ONLY way to resolve customer issues. The mistake made by many businesses is taking the focus off the customer once the sale has been made.
Customers are your business and existing customers are your resource for revenue and more customers.
Here's an example from the CEM (Customer Experience Management) Report from Strativity Group, in cooperation with CustomerSat, Inc.
212 Senior Executives surveyed:
- 31% have the tools and authority to actually serve their customers (down from 37%)
- 59% claimed they do not deserve customer loyalty
- 83% did not know the average annual value of a customer
- 89% did not know the cost of a customer complaint
- 90% did not know the cost of total resolution
- 62% did not know the annual customer retention rate
- 57% agree that their company does not conduct a true dialogue with its customers
- 54% agree that the role of the customer is not well defined
There is plenty of room for improvement when it comes to customer management. With a plan, knowing your "A" list and sticking to the basics will produce significant improvement in your bottom line over time.
Ms. Terri Schepps is the CEO/President of Retention Resource Center, LLC. and serves as the President for Integrity For You, Inc. both located in Dallas, Texas. RRC was established in 2007 to research, publish and promote retention resources globally. IFY was established in October 2000 to provide proactive customer service to businesses seeking growth through customer contact. Terri has published several retention focused articles world wide and in 2008 released her book “The ABC’s of Customer Retention”. She is active in inspiring and educating the business community in the value of direct customer contact.
In addition to her professional memberships, Terri is active civically in the Dallas, Texas community. She is married and has four children.
Terri can be contacted at tschepps@retentionrocks.com
|
|
