Monday, March 06, 2006

What is Customer Retention? How does it relate to the Customer Life Cycle?

Or Is this really Important for a Small Business Enterprise?

By Kevin Barrett

This is a very interesting topic…. Trillion’s of Dollars are spent a year on Sales Training… most of that training is focused for getting New Customers….

IIn effect, trying to find new Professional Sales Techniques to gain a "competitive advantage".

It is also interesting that Customer Retention Programs are usually an after thought.

We advocate companies “Developing a Loyalty Ladder” customer base….. rather than a “Revolving Door” sales process. Customer Retention Programs are just as important…. I will even say they are more important than, new customer generation….

Once , customer retention is setup properly it cost very little to maintain, “Open Regular Communications” with your existing customer base and it frees up more resources to expand your sales into new areas…

I wrote an article awhile back on this topic and the full article can be downloaded at the link….

Matching Your Retention Strategies and Customer Life Cycle

It has some very interesting concepts….

I have used some references from Adam Ramshaw a Director at Genroe Pty Ltd… Adam and his company in Australia are experts in this field..

The graphic on Customer Life Cycle was provided with his permission.

I would recommend to everyone checking out there website…. Genroe and I have collaborated in the past and they are exceptionally good at what they do….

After reading the above article, my question is How many of the companies you work with or for that matter your own… company… really factor in to their Sales Plan the Product Life Cycle?… ( it has also been called the “Itch Cycle” of the product, when does the customer start needing the product again, and need to satisfy that desire?)

I believe that this is an important aspect of “Increasing Sales” and it is “Vital” for companies to factor these principles into their “Sales Programs” and “Strategic Plans”…

Every Sales Professional, must consistently explore ways to make regular contact with their “Loyalty Ladder”…..

Kevin Barrett

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