Of course, all these figures are nothing more than an indicator of the “average temperature in the hospital,” but the consequence of these studies is an occasion to think about the need to make every effort to retain existing customers, ensuring their loyalty, while so far many companies are trying to capture as much market share as possible, focus on attracting new customers by implementing high-cost marketing programs. Also you will need to know what is crm software and how it works.
The Development of Storage
In accordance with the rapidly developing theory of marketing of relationships, customer loyalty should be considered as a set of parameters characterizing their behavior (volume and constancy of procurement) and the perception of the supplier of goods and services. With the best free crm software the matters can be solved properly.
- Of particular importance is increasing customer loyalty for companies specializing in the provision of various types of services, which involves direct contact with customers. And this is precisely the sector of the economy that is developing most rapidly. So, for example, if in the mid-50s the service sector accounted for 50% of the US gross national product, then by the end of the 90s this figure had grown to 73%. In the EU countries, the services sector produced 63% of the gross national product at the end of the 90s and provided 62% of the total number of employees, while in Japan the corresponding figures were 59% and 56%.
Thus, the customer base is the most important asset of the company, which must be carefully and efficiently managed. It requires:
- Creating and maintaining a sense of commitment among customers of the chosen brand (supplier of goods, services);
- Personalization of relationships based on the study of customer preferences and their behavior;
- The selection of the most promising customers in terms of long-term cooperation.
The implementation of these influences naturally requires an individual approach to each client, analysis of relationships with them in order to identify the most promising ones with which it is necessary to maintain the most “warm” and trusting relationships. The differentiation of clients obtained through such an analysis will not only further stimulate promising customers and increase their loyalty, but also reduce the cost of relationships with those customers who do not generate stable income. To solve this problem, it is necessary to collect and process large amounts of information on the history of relationships with each client. There will not be any faculty management system.
The last word
Investments in technologies for working with existing customers can increase their loyalty, and ultimately significantly increase the efficiency and sustainability of the business. As mentioned earlier, the cost of organizing the sale of products and services to old customers is in many cases significantly lower than to new ones. As a result, profitability can be higher, even if the price is lower than that of a competitor. In many cases, a loyal customer becomes less sensitive to the price, which means that you can set a higher price for a product (service) without risk of loss of turnover. This is especially true for cases of inelastic demand or for companies whose business involves a high proportion of variable costs. You cannot discount the fact that regular customers are more likely to take advantage of additional services (products) offered by the company, thereby increasing its turnover.