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Customer Retention Driving Profits Through Giving Customers Lots of Reasons to Stay |
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By Vadim Kotelnikov, Founder, Ten3 BUSINESS e-COACH – Innovation Unlimited, 1000ventures.com
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"The best way to hold your customers is to constantly figure how to give more for less." |
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Why Customer Retention? In today's competitive business world and challenging economy, retaining your customer base is critical to your success. If you don't give your customers some good reasons to stay, your competitors will give them a reason to leave. 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. Most surveys across industries show that keeping one existing customer is five to seven times more profitable than attracting one new one.2
29 Obstacles To Innovation
Customers for Life By: Brian Tracy
The purpose of a business is to
create and keep a customer. If a business successfully creates and keeps
customers in a cost-effective way, it will make a profit while continuing to
survive and thrive. If, for any reason, a business fails to attract or
sustain a sufficient number of customers, it will experience losses. Too
many losses will lead to the demise of the enterprise.
According to Dun and Bradstreet, the single, most important
reason for the failure of businesses in America is lack of
sales. And, of course, this refers to resales as well as
initial sales. So your company’s job is to create and keep a
customer, and your job is exactly the same.
Remember, no matter
what your official title is, you are a salesperson for yourself
and your company...
Getting Loyal Customers Delighted and loyal customers will return for follow-on business without considering alternatives of comparing the competition. Though, there is a number of factors that influence customers' decisions to remain loyal, true loyalty is based on your company's continuous delivery of superior value. Customer loyalty is a major contributor to sustainable profit growth - "and to win customer loyalty, the business must first satisfy the customer repeatedly."5... More Case in Point Benefits of Business Process Management
These improvements in process performance
paid off in the critical enterprise currencies of
customer satisfaction, customer
retention, and corporate profits...
More Partnering with Customers Customer connection comes from involving customers, partnering with them. Partnering with customers represents your firm's "capacity to anticipate what customers need even before they know they need it."6
More Value-Added (MVA)... How Do You Create Value for the Customer?... Value Innovation: Two Fundamental Questions... Customers will usually come back if... What Is Your Business Design?... Do Your Customers Enjoy Buying from You?... Differentiating with Different Types of Customers... Measuring the Success of Your Customer Retention Strategy... Measuring Customer Satisfaction... Relationship Marketing and Selling...
Case in Point
Case in Point
Case in Point
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