Experts say, it takes 5 to 10 times more time,
effort and expense to win new customers than it takes to keep existing ones.
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.
Jack Welch's 5 Strategic Questions
Customer retention and
satisfaction drive profits.
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
Create Customer Value: 10
Getting Loyal Customers
"Loyal customers are just waiting to be found.
They have already invested in your products or services and are just waiting
to be noticed. Before you begin planning your budget for new acquisitions,
understand the investors who have purchased stock in your future," says John
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
concept provides a relevant support for questioning product/market
strategies as well as underlying assumptions.
Creating Customer Value: 9 Questions
You must examine radically what constitutes
value for customers 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?...
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...
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...
"At Dell, we've always tried to exceed
customer expectations with our products and services," says
Michael Dell, the Founder of
Dell. "When you delight your customer – consistently – by offering
better products and better services, you create strong loyalty. When you go
beyond that to build a meaningful, memorable total experience, you win
customers for life. Our goal, at the end of the day, is for our customers to
say, Dell is the smarter way to buy a computer."
Surprise Your Customers
Small gestures can help turn your new clients
How Do You Create Value
for the Customer?...
Value Innovation: Two Fundamental Questions...
Customers will usually come back
What Is Your
Do Your Customers
Buying from You?...
Differentiating with Different Types of Customers...
Measuring the Success of
Your Customer Retention Strategy...
Business Process Management