Observe customers
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Observe customers

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Observe customers Observe customers Document Transcript

  • Viewpoint September „09 Good customer relationships drive profit! - In our November „08 Viewpoint we suggested that customer retention NOT customer acquisition is the key to long term profitability. Increasing customer retention by 5% can boost profits by up to 85% - this accelerated performance achieved by reducing overall marketing costs and identifying new selling opportunities. A September ‟09 report from the Chartered Institute of Marketing (CIM) reinforces the benefits of retaining and working with customers. Despite clear evidence that customer retention can increase profitability, it remains our experience that many businesses are wary about interacting with their customers. Many organisations are simply “scared” about receiving “bad news” about some operational problem such as customer service, product reliability or delivery. Be proactive talk to your customers! - We are strongly advocate developing structured communications with your customers. Not just interacting with them when taking an order or when they have made an enquiry, but through:  Regular customer contact programs (customer service review, news-sheets)  Proactive account management to retain customers  Ensuring that when you lose a customer you know why Customers are your organisation‟s most valuable asset and nothing is more valuable than a happy customer! Ongoing communications with your customers serves two main purposes: (1) Identifies areas for incremental improvements in performance and revenues Your customers are your best information source to ensure you maintain and increase your revenues by understanding their purchasing behaviour and explaining your organisations capabilities:  Why they buy/don‟t buy from you  What other products/services they buy  What else they would buy from you if only they knew you provided it.  What you need to do to up-sell additional products. Importantly, they will tell you about problems with your operation that need putting right – before you hear it from another customer or worse one of your competitors! (2) Identifies the “next-big-thing” to accelerate profit growth The CIM reports that individual customer suggestions are not a good source for developing continuing stream of new product ideas – rather you should develop them, yourself through linking an in-depth understanding of customer behaviour with your personal insight or expertise! T: 01276 537282 e: andy.hamer@nmsbusinessconsultants.com w: www.nmsbusinessconsultants.com
  • Viewpoint The CIM recommends that, where possible, you should observe your customer‟s day to day activities first-hand. Witnessing their practical problems and headaches and combining it with your personal experience and focus may lead to possibly simple but radical and very lucrative developments.  Fluke Corporation (Seattle) supplies hand-held measurement products. After watching engineers from its customers, discovered that they carried numerous instruments to calibrate temperature and pressure gauges. Furthermore, the engineers recorded readings on a clip board for subsequent entry onto a computer – not only time consuming but prone to errors! Fluke, designed a new software product which not only calibrated all gauges but also downloaded results direct to the engineer‟s computer. Not surprisingly, it became a great success!  Haier, a manufacturer of white goods were surprised to learn that people in rural China were using Haier washing machines to wash home-grown vegetables. As a result, Haier developed a new wash cycle designed specifically for vegetables! New Mindset works with clients to develop and improve customer relationships by ensuring they know and understand their customers, develop and implement systems and processes to collect information and interpret the information to provide detailed analysis on your customers‟ needs and requirements. Government grants are currently available for business improvement projects; your business might be eligible to fund our work click the link to find out. CALL Andy NOW on 01276 537 282 or email for your no obligation consultation. T: 01276 537282 e: andy.hamer@nmsbusinessconsultants.com w: www.nmsbusinessconsultants.com