Customers are an important part of any business; this makes ways to increase customer lifetime value necessary for sustainable profits within a static market. In fact, customers are so relevant to business that Customer Lifetime Value (CLV) is studied repeatedly in business programs and publications such as the Harvard Business School Publishing Corporation.
Even in a growing market it is a good idea not to forget the value of customers and what they mean to bottom lines. Showing customers you care is one way to help build a customer's perceived value of a business that contributes to a business's intangible value. In some cases, CLV is even measurable as demonstrated by the Harvard Customer Lifetime Value calculator.(1)
• Loyalty benefit programs
Loyalty benefit programs show customers you care by demonstrating recognition of their role as repeat clients. This helps build the B2P or Business to People relationship. Without loyalty benefit programs the chance of losing business to competitors increases.
• Personalized service
Impersonal communication with clients either means a company is too large for personal relationships or doesn't care about its customers. Large companies don't always maintain personal relationships because they believe utilizing human and financial resources in this way becomes statistically non-optimal.
• Improved customer service
Customer service creates impressions that last with consumers. Even if a company's management is impeccably ethical, this does not mean its employees are. Quality control of customer service helps ensure clients are receiving the service they pay for.
• Dispute resolution procedure
Few companies are likely to not experience disagreements or even litigation with clients. Reducing both these things can be assisted with a customer dispute resolution procedure. This type of process, if effectively designed and implemented, shows customers you care and may avoid costly legal proceedings or lost business.
• Referral incentives
Referral incentives are cheap to implement and therefore accomplish two objectives. First, effective referral incentives reduce the need for a costly marketing and sales campaign and secondly, it shows customers you care by offering incentives for a service those customers may have provided free of charge anyway.
Every business is different as are their customers. Showing customers you care involves understanding your customers' needs and that you value their business on a continual basis. Depending on the business environment, products or services, and customer beliefs, some methods may be more effective in showing customers you care than others.
Additionally, not all attempts at showing customers you care may be profitable individually or in aggregate. This makes an accurate assessment of company resource uses managerial and employee resources weighty part of business management.
Source: U.S. Navy; PD-USGov
Even in a growing market it is a good idea not to forget the value of customers and what they mean to bottom lines. Showing customers you care is one way to help build a customer's perceived value of a business that contributes to a business's intangible value. In some cases, CLV is even measurable as demonstrated by the Harvard Customer Lifetime Value calculator.(1)
• Loyalty benefit programs
Loyalty benefit programs show customers you care by demonstrating recognition of their role as repeat clients. This helps build the B2P or Business to People relationship. Without loyalty benefit programs the chance of losing business to competitors increases.
• Personalized service
Impersonal communication with clients either means a company is too large for personal relationships or doesn't care about its customers. Large companies don't always maintain personal relationships because they believe utilizing human and financial resources in this way becomes statistically non-optimal.
• Improved customer service
Customer service creates impressions that last with consumers. Even if a company's management is impeccably ethical, this does not mean its employees are. Quality control of customer service helps ensure clients are receiving the service they pay for.
• Dispute resolution procedure
Few companies are likely to not experience disagreements or even litigation with clients. Reducing both these things can be assisted with a customer dispute resolution procedure. This type of process, if effectively designed and implemented, shows customers you care and may avoid costly legal proceedings or lost business.
• Referral incentives
Referral incentives are cheap to implement and therefore accomplish two objectives. First, effective referral incentives reduce the need for a costly marketing and sales campaign and secondly, it shows customers you care by offering incentives for a service those customers may have provided free of charge anyway.
Every business is different as are their customers. Showing customers you care involves understanding your customers' needs and that you value their business on a continual basis. Depending on the business environment, products or services, and customer beliefs, some methods may be more effective in showing customers you care than others.
Additionally, not all attempts at showing customers you care may be profitable individually or in aggregate. This makes an accurate assessment of company resource uses managerial and employee resources weighty part of business management.
Sources:
1. http://bit.ly/4QjPrf (Harvard)
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