We all know that it is easier to sell your product or service to a current customer than it is to try and get a potential customer on board. In these uncertain times, holding on to your most valued customers is more crucial than ever. From just a quick Google search you get many different statistics thrown in your face:
The average company loses 10% of its customers each year
A 5% reduction in the customer defection rate can increase profits by 25% to 85%, depending on the industry
The top 20% of customers in a business may generate as much as 80% of the company’s profits, half of which are lost serving the bottom 30% of unprofitable customers
Recent research by CMO Council shows that only a half of global marketers have strategies in place to further penetrate or monetize key customer account relationships and only one-third have strategies in place to win back dormant or lost customers.
For more information on how we can help you gain more value from your customers or win back lost customers contact the B2B International team.
Marketers look to boost customer retention
CMO Council study finds maximizing existing relationships takes a back seat to new leads
By Kate Maddox
May 5, 2008
While b-to-b marketers are increasingly focused on improving relationships with customers, they still have a long way to go in implementing effective, consistent customer retention practices, according to a study released last month by the Chief Marketing Officer Council.
The study found that only one-third of global marketers have strategies in place to win back dormant or lost customers, and only half have strategies to further penetrate or monetize key account relationships.
The study was based on an online survey of more than 450 global marketers, conducted in the fourth quarter of 2007 and the first quarter of this year.
According to the study, only 6.8% of marketers said they have excellent knowledge of the customer when it comes to demographic, behavioral and psychographic data, while 51.9% said they have fair to little knowledge of the customer.
To help reduce customer churn, Fujitsu has given ownership of customer satisfaction metrics to functional heads across the organization, including product development, sales, marketing and customer service.
Fujitsu also implemented a CRM system about a year ago and is now trying to broaden its use from a sales contact tool to an enterprise wide customer asset manager.
For more, click here
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on Tuesday, July 22nd, 2008 at 9:09 am and is filed under Customer Satisfaction, Market Research.
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July 24th, 2008 at 9:10 pm
The results of this study doesn’t surprise at all. Most businesses both large and small alike lose out on deepening current client relationsips by ignoring them and focusing entirely on new, shinier clients.
Jen Thomas
Muvar Software