As the markets become more competitive it is becoming more important to keep your existing customers. In fact acquiring a new customer is always a loss position in the short run. That is, it costs more to acquire a new customer than the profit derived from that new customer over the first few transactions. It is only over the lifetime of a customer that we can turn a profit.
The lesson then is, focus 80% of your efforts in keeping and growing existing customers and only 20% of your resources on acquiring new customers. To do this we require a complete Customer Service Management System and a Customer Relationship Management System.
This is, an across the entire business management philosophy that Customer Service is job number One.
The elements of the Customer Service Management System would include the following:
- A Customer Service Philosophy that is made up of : your Vision for Customer Service; A set of Beliefs that should be articulated in a Customer Service Credo; A Motto that can be remembered by all staff; Steps of Service and Standards of Service
- Also a Continuous Improvement management approach to all Processes and micro processes that go to deliver Customer Service
- A Quality program to achieve world class quality for all your services and products
The Customer Relationship Management System will have a process for:
- Sending out Marketing Campaigns;
- Capturing Qualified Leads
- Making valuable Presentations to Prospects
- Closing the Sale
- And Servicing the Customers
We will dig deeper into these elements in future Blogs. In the meantime, please keep your comments coming.
CoachBengo
