Death of Profit:Customer Power Requires a Mind-set Change to Improve Customer Retention and ProfitsLast week, I wrote about companies professing they had more importantpriorities than Customers. In more and more studies, we are finding thatcompanies are losing existing Customers. The profit increase fromretaining Customers is shown belowIn a recent Business Line article quoting a global study, they stated that80% of the Customers in India and globally who complained about poorservice or product deficiencies had their complaints ignored. Companieslost at least 18% of their annual revenues because of poor complainthandling. In my opinion the number is higher but is masked. Companiescannot afford to lose Customers and allow profits to leak through the poorCustomer experience sieve. They need to heed this. So what are theydoing?
Companies are planning to spend more in Customer support technology.They are thinking that technology will solve the poor Customer experienceand retention problem. But what they need to do is to change the mind-setstarting at the top with CXO’s and getting all departments to focus on theCustomer and Customer issues. They need to break internal silos, andbuild a circle of promises internally to make sure the Customer remainshappy and stays with the company (and even attract new Customers byword of mouth). They also need to incorporate Customer Circles like theQuality Circles to start a Continuous Customer Improvement program. Thiswill give them more mileage and will be cheaper than a mere technologyintervention. Companies beware of Customer Power! Do not let your profitsdie!Gautam MahajanPresident, Customer Value FoundationMob: +91 9810060368email: firstname.lastname@example.org: http://www.customervaluefoundation.comUnsubscribe me from this list