HOW CAN IT BE? Finding a-n-d keeping loyal customers is the fundamental precept
These two functions seem to be equal; yet, businesses typically spend 6 times more money finding new customers than keeping
old ones. And it shows. A significant majority of Gallop Poll participants rated the customer service they
received as " Unsatisfactory!" It's true. It's also absurd... especially when one considers other studies
which indicate that customer loyalty is worth about ten times the price of a single purchase.
NOW, THE SCARY PART! Companies hear from only about 4% of their dissatisfied
That's right. Statistics show that 96% of dissatisfied customers never complain... they just never come back.
Worse yet, they'll probably tell about 10 people about their bad experience before they have finally vented their anger/frustration.
Losing customers is not only expensive, it's downright dangerous! Think. A company loses an old customer
that is worth 10 times a new one, and afterwards has to face that customer's wrath 10 times over. So,
"A Stitch In Time Doesn't Save 9" It saves 10 x 10, or 100.
NEXT THE NIGHTMARE. A customer need not experience a total disaster to feel
Even a merely unpleasant experience can trigger a "ricocheting bullet," able to wound a company's reputation at any moment.
And remember, 96% of the time, a company will never know what hit them. This is revenge at its pinnacle. It may
make sense to "leave sleeping dogs where they lay," if you are a burglar, but it's shallow wisdom if your intent
is not thievery... and your goal is profit. Call your customers. Offer your services. Ask about their
purchase. How can you lose? A problem identified is a problem solved. And customers respect a company
merely for trying.
Enlightened companies know this fact and have ceased paying lip service to customer service by making pro-active efforts
where reactive efforts once prevailed. In balancing priorities, they have reduced customer churn.
So, expect that a company's future vitality will depend upon its treatment of its customers today... all of them...
all of the time, for they are already enjoying the attention of other enlightened firms. It's not that sales are
no longer important, it's just that
DASHING FOR A NEW SALE
ONLY TO OUT-RUN AN ERODING CUSTOMER BASE
MAKES NO MARKET-SHARE SENSE, OR CENTS!
LOYAL CUSTOMERS PROVIDE
A source of ideas for exisiting products
A reference base for future prospects
A revenue base for new products
A resource for sanity checks!