Customer Retention - DIMENSIONS - Howard Marketing · Key Messages Customer Values Are Changing...
Transcript of Customer Retention - DIMENSIONS - Howard Marketing · Key Messages Customer Values Are Changing...
Customer Retention:Customer Retention:The Art of Keeping Good CustomersThe Art of Keeping Good Customers
85%
75%
50%45% 45%
40%35%
30%25%
REDUCE ATTRITION TO INCREASE PROFITSREDUCING THE ATTRITION RATE FROM 10% TO 5%CAN INCREASE PROFITS FROM 25% TO 85%
Calculated by Comparing the Net Present Valuesof the Profit Streams for the Average Customer Life at Current Attrition Rates, With the Net Present Values of the Profit Streams for the Average Customer Life at 5% Lower Attrition Rates.
Branch Deposits
ChargeCard
InsuranceBrokerage
IndustrialDistributionIndustrialLaundry
Office Bldg.Management
Software
Auto SvcChain
CreditInsurance
Key MessagesKey Messages
Customer Values Are ChangingCustomer Values Are Changing
Customer Focus is a DisciplineCustomer Focus is a Discipline
Customer Retention is an Art Customer Retention is an Art ––The Art of Keeping Good CustomersThe Art of Keeping Good Customers
If it touches the customer, If it touches the customer, it’s a marketing issueit’s a marketing issue™™
Changing Customer ValuesChanging Customer Values
1.1. Relevant features and Relevant features and functions, with the ability to functions, with the ability to customisecustomise
2.2. Choices and FlexibilityChoices and Flexibility3.3. Relationships based on trust Relationships based on trust
and rewarded with loyaltyand rewarded with loyalty
Changing Customer ValuesChanging Customer Values
4.4. Sufficient knowledge and Sufficient knowledge and informationinformation
5.5. Complete and Complete and fullfullsatisfactionsatisfaction
6.6. Speed and ConvenienceSpeed and Convenience
Changing Customer ValuesChanging Customer Values
7.7. Environmental ImpactEnvironmental Impact
Importance of Customer Importance of Customer RetentionRetention
“If we don’t take care “If we don’t take care of our customers,of our customers,
someone else will.”someone else will.”
Nick UttonNick UttonChief Marketing OfficerChief Marketing Officer
MasterCard InternationalMasterCard International
Customer FocusCustomer FocusIs A DisciplineIs A Discipline
Customer Focus Is A Discipline Customer Focus Is A Discipline
“Create customer intensity “Create customer intensity everywhere.”everywhere.”
Lew PlattLew PlattCEOCEO
HewlettHewlett--PackardPackard
Focussing on Customer Focussing on Customer NeedsNeeds
The Importance of TLCThe Importance of TLC
TTLLCC
TLCTLC
ThinkThinkLikeLike
CustomersCustomers
Think Like Customers Think Like Customers
Customer ExpectationsCustomer Expectations
AddedValue
(Likes)
Negotiable
(Desires)
Non-Negotiable
(Wants)
Core
(Needs)
Customer Evaluations Customer Evaluations –– 4 PE’s4 PE’s
Promise + Performance ExperiencesPromise + Performance Experiences
People ExperiencesPeople Experiences
Process ExperiencesProcess Experiences
Personal ExperiencesPersonal Experiences
Customer Experience MatrixCustomer Experience Matrix
PersonalPersonal
ProcessesProcesses
PeoplePeople
Promise Promise PerformPerform
Added Added ValueValueNegotiableNegotiable
NonNon--NegotiableNegotiableCoreCore
Customer Experience Customer Experience ScoreboardScoreboard
1010101010101010PersonalPersonal
55555555ProcessesProcesses
55555555PeoplePeople
55555555Promise Promise PerformPerform
Added Added ValueValueNegotiableNegotiable
NonNon--NegotiableNegotiableCoreCore
Heighten Customer ExperiencesHeighten Customer Experiences
Flexible policiesFlexible policiesEmpowered customer contact Empowered customer contact staffstaffTLCTLCConsistent quality and service Consistent quality and service deliverydelivery
Customer RetentionCustomer RetentionIs An ArtIs An Art
Defining CustomersDefining Customers
What is a Customer?What is a Customer?When does someone become When does someone become your Customer?your Customer?
Relationship MarketingRelationship Marketing
NOT Customer Relationship NOT Customer Relationship Management!Management!Forget CRM as you know it.Forget CRM as you know it.Think:Think:
Customer Retention Marketing!Customer Retention Marketing!
Perceptions vs. RealityPerceptions vs. Reality
What is the difference between What is the difference between perception and reality?perception and reality?
Perceptions vs. RealityPerceptions vs. RealityWhat is the difference between perception What is the difference between perception and reality?and reality?
Perceptions are Perceptions are BELIEVEDBELIEVEDby the beholder!by the beholder!
PerceptionsPerceptions
Perceptions are REAL.Perceptions are REAL.
Actually…..perceptions are Actually…..perceptions are more more importantimportant than reality.than reality.
Why?Why?
Perception PointsPerception PointsThe crucial moment when customers The crucial moment when customers and prospects:and prospects:
seeseehearhearsmell smell feelfeel
touchtouchtastetaste
experienceexperience
Perception PointsPerception Points
Key point:Key point:
Each and every point of customer Each and every point of customer contact contact –– before, during, and after before, during, and after a sale a sale –– will affect what people say will affect what people say and believe about you.and believe about you.
Points of InteractionPoints of Interaction
Perception Points = Contact PointsPerception Points = Contact Points
Contact Points = Points of InteractionContact Points = Points of Interaction
Perceptions are formed by customers Perceptions are formed by customers through interactions.through interactions.
7 Cs of Customer Retention7 Cs of Customer Retention
Caring AttitudeCaring AttitudeCustomised PracticesCustomised Practices
Competent CCPsCompetent CCPsCall/Visit OnceCall/Visit Once
Convenient AccessConvenient AccessCompressed Cycle TimesCompressed Cycle Times
Committed Follow ThroughCommitted Follow Through
Customer LoyaltyCustomer Loyalty
Customer Satisfaction is an Customer Satisfaction is an attitude.attitude.Customer Loyalty is a Customer Loyalty is a behaviourbehaviour..
Customer RetentionCustomer RetentionIs An ArtIs An Art
SummarySummary
The great businesses of tomorrow The great businesses of tomorrow will grow exactly the way great will grow exactly the way great businesses have always been businesses have always been
built:built:
by doing marvelous things that by doing marvelous things that meet the needs, wants, and meet the needs, wants, and
desires of customers.desires of customers.
CommitmentCommitment
Don’t have a commitment to Don’t have a commitment to customer service……customer service……
have a commitment to customers.have a commitment to customers.
Howard Marketing ServicesHoward Marketing ServicesAdded ValueAdded Value
Monday Morning Marketing MemoMonday Morning Marketing Memoee--mail newslettermail newsletterArticles, references, links to Articles, references, links to marketing and sales sitesmarketing and sales sites
www.howardwww.howard--marketing.commarketing.comsteven@[email protected]
Thank YouThank You