Effective Selling:

Value Innovation

Customer Retention

Driving Profits Through Giving Customers Lots of Reasons to Stay

 

Vadim Kotelnikov personal logo Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

"The best way to hold your customers is to constantly figure how to give more for less." Jack Welch

Mystery Shopping

Benefits of Customer Retention

Statistics5

  • Acquiring new customers can cost five times more than satisfying and retaining current customers

  • A 2% increase in customer retention has the same effect on profits as cutting costs by 10%

  • The average company loses 10% of its customers each year

  • A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry

  • The customer profitability rate tends to increase over the life of a retained customer

Customer Satisfation Retaining Customers 80/20 Principle Customer Satisfaction

 

 

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Virtuoso Marketing

  

 

Traditional Strategy versus Strategic Innovation

Traditional approaches

Strategic Innovation approach

Are technology-driven (seek consumer satisfaction)

Is consumer-inspired (seeks consumer delight)

>>> More

Customer Loyalty

Surprise Your Existing Customers To Retain Them

Customer Satisfaction

Measuring Customer Satisfaction

Listening To Your Customers

Customer's Perspective of Quality

Dealing With Unfair Clients

Customer Satisfaction Illusion and Trap

Winning Customers

Achieving Deep Customer Focus: 10 Breakthroughs

Add More Value for Your Customer

Make It Easy for Your Customers To Do Business with You

Value Innovation

Why Customer Retention?

Experts say, it takes 5 to 10 times more time, effort and expense to win new customers than it takes to keep existing ones.

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.

Jack Welch's 5 Strategic Questions

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

Create Customer Value: 10 Matsushita Lessons

 

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 Mehrmann.

Customer Care

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

Value Innovation

The value innovation 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 real value for customers by asking fundamental questions: what value offering 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?... More

Innovation Is Love

 

 

Apply 80/20 Principle

The 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... 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

 Case in Point  Dell Computer Corporation

"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 into regulars... More

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  Amazon.com...

 Case in Point  Charles Schwab...

 Case in Point  Benefits of Business Process Management

 

 

 

References:

  1. "Leading on the Edge of Chaos", Emmett C. Murphy and Mark A. Murphy

  2. "Companies Don't Succeed - People Do!", Graham Roberts-Phelps

  3. "Customer Intimacy", Fred Wiersema

  4. "Customer Retention in a Week", Jane Smith

  5. "Extreme Management", Mark Stevens

  6. "Results-Based Leadership", Dave Ulrich, Jack Zenger, and Norm Smallwood

  7. "Relationship Marketing", Women's Business Centre, Dallas, TX, United State

  8. Agenda, Michael Hammer

  9. Five Ways to Win Over Customers, Carmine Gallo, author of Fire Them Up!