Retention. It's half the battle!
Companies can boost profits by almost 100% ...
by retaining just 5 percent more of their customers - Harvard Business Review
The Thompson Group uses the term "Strategic Marketing and Customer
Retention" to describe the things we do. Look for a moment at the latter
part of that description ... "customer retention". We want to
stress an important point. Unlike the conventional interpretation of those words
- where people see companies as retaining customers - the reality is that it's
the other way around. Customers retain companies - or choose not to do so. We
urge you to accept this perspective.
With all the
hype about "CRM" (Customer Relationship Management), one would
expect customer service to have improved. To learn much more about
"CRM" - we suggest you sign up for "Customer
Think" - an excellent free newsletter published by CRMGuru.
But, more than ever, we are hearing
about and experiencing a tremendous degradation in satisfaction. While finding
new customers is critical, keeping present customers is at least half the battle
for company profitability and growth.
People are walking away from business encounters with the feeling they weren't
listened to, weren't told the truth, weren't cared about and weren't satisfied
for the money they spent. Expectations are simply not being met! Companies
exceeding customer expectations are reaping the rewards.
One might think companies having poor service stopped thinking of their
customers as a source of future business. This is not the case. Most
simply miss the point that almost all meaningful customer interactions take
place at the front lines ... on a person-to-person basis.
marketing strategists, we envision the single most important tool for
differentiation - setting yourself apart from the competition - will be a return
to down-to-earth service excellence, and the commitment by companies
to follow through to make it happen. Today,
consumers are marking their score cards and creating their own relationships
with companies that treat customers with the respect they deserve. The
reality is that service excellence, defined as exceeding customer expectations,
will remain the single most important contributor to business success.
The biggest big part of this involves communicating with customers. Not just
talking, but communicating in a way that is meaningful. Even when your customers
are satisfied, we have ways of increasing the amount of business they give you!
Now give yourself the acid test.
Does my company talk to customers with respect,
delivering honest, timely and meaningful responses and information? Do we
empower our people to talk to customers in ways to make things happen? If not,
forget any fancy terms like "CRM" and save tons by avoiding miracle
systems. First, master
the basics. Sophistication may help later.
Our economy is in transition. We are moving back to what has
been called a "conversation economy." This means the days of mass
advertising and mass convincing are quickly waning. Purchase decisions are being
made on an experience basis, and influenced by person-to-person encounters.
Tomorrows leaders are now realizing that to get your business, they are
going to have to talk to you, and you alone. That takes a big commitment, and a
new way of leadership. It requires that the entire enterprise be involved with
the responsibility for customer satisfaction.
Consider these facts, as
you seek to enhance your business:
Businesses - on average - spend 80% of their marketing dollars
going after new customers and clients rather than nurturing, retaining, and
maintaining the customer relationships they already have.
customers spend 33% more than new customers.
among repeat customers are 107% greater than non-customers.
- It costs
six times more to sell something to a prospect than to sell that same
thing to a customer.
Our chart - "Keys to Customer Retention
(click here)" - will be of interest if you want
to retain 5% more of your customers ... and start on your way toward improving
your profits by 100%.
After looking it over, contact us for answers on how to make customer retention a reality. We'll also discuss ways
for business enhancement from satisfied customers you already have.