Client’s Value During All His Life
December 26th, 2007 at 9:17 pm (Uncategorized)
It is difficult to acquire a devoted client, but it is far easier to lose him. Much of statistical information in this area testifies if clients believe that their complaints will be treated warmly and will bring to action, it is likely that they again will address the company. In addition it is easier not only to sell the goods to long-term clients – it is easier to serve them, after all, such clients know how to achieve the execution of their hopes. Company’s production, employees and system of business are familiar to long-term customers.
No Chance to Protect Oneself
As soon as people or companies give signs of the suspicious relation to complaints, clients start to show their resistance. Or, what is even worse, they can leave the company silently slamming a door, but later they will begin to give company’s testimonials to people around them. In such a situation the company will have no chances any more to protect itself.
Long-term Outlook
You can tell that consumers of cheap services are unworthy of big expenses. But here companies should see long-term outlook. Each cloth cleaning can cost about 10-15 dollars. However during life the client easily spends about 30000 dollars for it, not to mention his friends and relatives whom he will recommend to address to this dry-cleaner. In company Domino Pizza calculated, that regular customer spends about 5000 dollars during a period of 10 years. According to data of consulting group “Bain and Co.”, possessed in Boston, the profit can grow from 25 to 95 % - simply because of negative testimonials will decrease to 5 %. What easier way to save a client can be than attentive attitude to his complaints?
Increased Annual Income
No doubt researches show that because of rejection of complaints not 5 % of clients leave the company but much more. According to IBM, only less than half of consumers, whose problems were not decided, are going to work further with the company which have disappointed them. But practically all clients who think that everything can be settled to their pleasure say that they will give the company one more chance. Every year the saved client gives more profit.
Some companies fight for increasing of sales volumes to regular customers, for «a share of the buyer»; the concept “market share” means to work with a maximum quantity of buyers. Two thirds of sales in most of companies take place at the expense of regular clients. At least, the company usually knows that what kind of people are their clients and can interrogate them in the shops. While sometimes companies have no choose but it is easier and more cheaply to work with regular customers.