Thursday, May 13, 2010

Keeping Customers For Life... Part III

"All business, from potato chips to washing machines to jet
engines,
is about selling to people." - Tom Peters

Those words is a fact that good marketers understand and thus,
develop strategies to reinforce preference for their brand,
product
and service. Keeping customers in your stable now
boils down to
analysis, planning and execution.

Yes, most have heard of loyalty programs but then, not all
realizes
that its effectiveness really depend on the support of
management, the
brains of its leaders and the hands of its
employees. More than
just your product, you need a concerted
effort to constantly deliver
a good impression to your
customers.


Understand that you do not have to wait for your customers
to tell
you to serve them well and better than others to stay
long with
you. You got to anticipate their needs and provide
your customers
with easy steps for them to do repeat business
with you. These
should be simple and cost-effective ways of
acknowledging
valuable customers who seek and appreciate
emotional benefits
from enhanced self-esteem, distinction, and
customer status.


"Once all the surviving contenders in a market can offer value,
the battle shifts to speed and innovation. To distinguish
themselves,
companies must offer something unique."
~ Noel M. Tichy


Yet remember, more revenues from customers do not always
mean
profit is better. Knowing who your most profitable
customers are
and increasing their number will profitably
sustain your business.
Customer satisfaction is for all your
customers. Customer loyalty
is for your most profitable and
valuable customers. Therefore, be
strategic in allocating your
resources in a way that will best serve
and grow your highly
profitable and volume-generating customers.


Here are some tips...

Evaluate priorities and allocate resources accordingly based on
the following:
  • How customers contribute to total profitability
  • Significance of customers to the total business or in terms of their business size relative to the overall business
  • Potential for future growth or any customer expansion plans

Evaluate overall cost of doing business with a customer to sustain
profitable relationships. Breakdown the cost of doing business
through the following:
  • Discounts or payment terms extended to them
  • Customer promotions

Other ad hoc or temporary support extended such as:
  • Volume discounts
  • Additional manpower
  • Operational subsidies
  • Administrative and selling costs

In the end, it is your reputation for doing business that will
carry
you through... and keep your customers for life.

Take note...
"We don't know how to sell products based on performance.
Everything we sell, we sell on image." - Roberto Goizueta

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