customer retention Customer Retention No Small Accident By www.small-business-software.net Published On :: Mon, 8 Jun 2015 09:00:00 -0400 Loyal customers are precious. Identifying the details and creating a system to make sure they are taken care of is key. complete article Full Article
customer retention The Impact of Inaccurate Color on Customer Retention and CRM By Published On :: Full Article
customer retention Cable T.V. and Customer Retention By strategystreet.blogspot.com Published On :: Wed, 04 May 2011 18:46:00 +0000 Recently, I decided to test the waters for a less expensive television experience. I have been a loyal cable subscriber for thirty-five years, but friends have told me that other systems, especially satellite, are cheaper. I went online to DirectTV.com to check their packages. We have been spending about $112 a month. The equivalent package from DirectTV appeared to be about $81 a month. I was shocked at the size of the price difference. DirectTV was more than 25% less expensive than Comcast, my cable supplier. Given the size of these price differences, I did some investigation in what is happening in the market. Today there are four potential television service suppliers: cable, telephone companies, such as AT&T and Verizon, satellite and internet companies, such as Netflix and Hulu. The cable companies command 60% of the market. Phone companies have less than 15% of the market. The satellite firms, including DirectTV and Dish, control most of the rest. The internet firms are still small, though they may become larger in the future. Over the years, the cable companies have held a high price umbrella over the satellite companies. Now the phone companies are getting under this umbrella as well. The cable companies lost two million subscribers last year. The phone companies picked up most of that loss, while the satellite firms picked up a bit. The combination of the phone and satellite companies took virtually all the growth there was in the market. Customer retention is a big deal. Even in fast-growing markets, you would like to be able to retain your customers when competitors seek them out. The cable companies have sought to retain customers by emphasizing more services to higher spending customers. These customers tend to be less price-sensitive. It appears that the cable companies are going to have to alter their courses. They simply can not afford to let their competitors take away their market share. Eventually, the competition will be as big and as strong as they are. They will lose the market leverage that a leader enjoys. For examples see GM in autos, IBM in the PC market and U.S. Steel in the steel market. The T.V. market is speaking in clear tones. The phone and satellite companies offer a better value proposition. The cable companies have to listen soon. Full Article ATT Comcast Cable competitor success and failure customer segmentation DirectTV Hulu industry evolution Netflix price umbrella pricing strategy Verizon
customer retention Cable T.V. and Customer Retention By strategystreet.blogspot.com Published On :: Wed, 25 May 2011 23:02:00 +0000 Recently, I decided to test the waters for a less expensive television experience. I have been a loyal cable subscriber for thirty-five years, but friends have told me that other systems, especially satellite, are cheaper. I went online to DirectTV.com to check their packages. We have been spending about $112 a month. The equivalent package from DirectTV appeared to be about $81 a month. I was shocked at the size of the price difference. DirectTV was more than 25% less expensive than Comcast, my cable supplier. Given the size of these price differences, I did some investigation in what is happening in the market. Today there are four potential television service suppliers: cable, telephone companies, such as AT&T and Verizon, satellite and internet companies, such as Netflix and Hulu. The cable companies command 60% of the market. Phone companies have less than 15% of the market. The satellite firms, including DirectTV and Dish, control most of the rest. The internet firms are still small, though they may become larger in the future. Over the years, the cable companies have held a high price umbrella over the satellite companies. Now the phone companies are getting under this umbrella as well. The cable companies lost two million subscribers last year. The phone companies picked up most of that loss, while the satellite firms picked up a bit. The combination of the phone and satellite companies took virtually all the growth there was in the market. Customer retention is a big deal. Even in fast-growing markets, you would like to be able to retain your customers when competitors seek them out. The cable companies have sought to retain customers by emphasizing more services to higher spending customers. These customers tend to be less price-sensitive. It appears that the cable companies are going to have to alter their courses. They simply can not afford to let their competitors take away their market share. Eventually, the competition will be as big and as strong as they are. They will lose the market leverage that a leader enjoys. For examples see GM in autos, IBM in the PC market and U.S. Steel in the steel market. The T.V. market is speaking in clear tones. The phone and satellite companies offer a better value proposition. The cable companies have to listen soon. Full Article ATandT Comcast Cable competitor success and failure customer segmentation DirectTV Hulu industry evolution Netflix price umbrella pricing strategy Verizon
customer retention The Mobile Phone Industry and Customer Retention By strategystreet.blogspot.com Published On :: Thu, 30 Jun 2011 00:14:00 +0000 The mobile phone industry’s growth has slowed. It is now operating more like a stable, moderate to slow growth market. This is particularly true in Europe. To face the challenge of slower growth in the industry, European mobile operators are turning to customer retention, but they are careful of the customers they seek to retain. The Europeans have observed that less than 20% of an operator’s customers generate to 80% of the operator’s total revenue. This pattern repeats itself in many industries. When we have seen these patterns in other industries, we have also noted that less than 10% of the total customers generate an astounding 50% of total revenues. These are the really important customers in an industry. A company must retain its key customers. In the mobile phone industry, as in most industries, the largest 20% of the industry’s customers are likely to be what we would call Core customers for the industry’s larger competitors. A Core customer allows supplier company to earn at least the cost of capital through a business cycle. The retention of these core customers is of paramount importance to long term company success. It costs a great deal more to find a new customer than to retain and build the relationship with a customer you already have. In the European mobile phone industry, carriers have found that it costs ten times more to acquire a customer than to retain one. The industry has found another important phenomenon associated with customer defection. Recent research has told it that defection is a social phenomenon. If defecting customers leave an operator, they usually are not quiet about it. They tell their friends. In turn, some of their friends defect as well. So, the loss of a Core customer to an operator will often bring with it the loss of several other Core customers. The mobile phone operators in Europe are working on retention by focusing particularly on those Core customers most likely to defect. These operators have analyzed the value of their customers and have assigned a rating to each customer. When a customer calls a call center, the information about the customer, including his rating, is readily displayed on the service representative’s screen. This customer specific information enables the service representative to respond with different value offers, depending on the importance of the customer. Most of these offers reflect lower prices for a potential defector. But the industry is responding to potential defections with more than simple price reductions. Some companies are developing personal calling rates and plans tailored to individual Core customer habits. One European company instituted this individual approach and cut its percentage of customers defecting each year in half, from 20% to 10%. The industry has found another important phenomenon associated with customer churn. Recent research has told it that defection is a social phenomenon. If defecting customers leave an operator, they usually are not quiet about it. They tell their friends. In turn, some of their friends defect as well. So, the loss of a core customer to an operator will often bring with it the loss of several other core customers. Customer retention is an important, strategic management imperative, even in fast growing markets Full Article competitor success and failure customer analysis industry evolution pricing product innovation
customer retention How AI Can Improve Customer Retention By www.crmbuyer.com Published On :: 2020-03-21T04:00:00-07:00 Customer attrition and churn are not new problems. Anyone who has spent time in the sales world has heard statistics around the cost of acquiring a new customer. It can be five to 25 times more expensive to acquire a new customer than to retain an existing one. Improving customer retention by just 5 percent can increase profits by 25-95 percent, depending on your industry and company size. Full Article
