Customer Retention Management
Business development, or obtaining new customers, is one of the most
important topics of Marketing & Sales. However, much more important
is the retention of actual customers. The costs of retention of an
actual customer are just a small part of the costs of getting a new
customer. As the actual customers generate a continuous cash flow,
they are the base of a company.
Retaining actual customers
Customer Retention Management is a management approach which aims on
creating loyalty of customers.
This approach puts the company in the position of supplier. It has
the following elements:
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There are
conditions a customer, often unspoken, has for retaining
with a supplier: the drivers.
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In his
contacts with the supplier and observing the service he
provides, the customer assesses, mostly informal, the
supplier.
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The higher
the supplier scores on the customer's
drivers, the more satisfied the customer will be
and the more loyal he will be to his supplier.
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By
dedicated adaptation projects the supplier continuously
improves on the drivers of his customers, which creates
an improved customer retention.
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