Standing Out From The Crowd

Maybe I am a pessimist, but I think many companies today focus all their efforts and budgets on projects that don’t solve their main problem. They wait too long to realize when they need specialized help. It’s like being concerned with making dinner while the house is on fire. You don’t call 911 until the whole house has burned down. Do you think the firemen can help you now?

If you work in a corporate marketing department with more than 1,000 customers, you probably spend your days looking for creative ways to obtain new customers and increase revenue. Doubtless, you’ve read at least one Customer Experience article lately and you agree that the best way to keep your customers is to improve customer interactions to meet their expectations. However, all your annual budget and goals are directed to acquire new customers, not retain current ones.

What most companies fail to understand is that the road to credibility and profit lies in devoting at least some of their investment and attention to Customer Experience. The numbers confirm this: It costs 10 times less to maintain a customer than to obtain a new one. It also costs 10 times more to recover one lost customer.

So now, all you have to do is get a holistic view of your customers, evaluate all their interaction points with your company, and implement a strategy that would be valid across all channels. Shift your perspective. It may sound overwhelming, but it doesn’t have to be.

There are two ways to get hold of the idea and change how you approach your business:

1. Step-by-Step
   • Improve the Customer Experience in small projects. Look for low hanging fruit
   • Constantly review and gradually expand the scope — as you measure results
2. Top-Down
   • Gather related data and numbers
   • Show the merits of customer-centricity to top management
   • Implement a company-wide Customer Experience strategy

Either way, you must realize that the fire is already burning. The market is changing. Customers are becoming more demanding and savvy. Companies are speeding up to adapt and you cannot risk being left behind. It’s a mindset change but it just takes the effort to look at things from a different angle. Refocus how you use your marketing budget. Think about how you’ll see a better return on your investment as you grow your business.

Don’t wait for others to make their move. Most of all, don’t wait for your customers to make their move! Call 911!

*Originally published in May 19, 2006 at http://www.voxinc.com/customer-retention-shift-your-perspective.htm