Building for a better future...
Industry experts suggest that customers defect from the company they deal with at a rate close to 20% per year. At this rate about half the original customer base remains after 3 years. In the next six years , 80% of your customers will leave, 65% due to something you did. This can adversely effect profit and cash flow of an organization. Companies must strive to retain the existing customers.
Customer Satisfaction = Customer Retention
A satisfied customer is a loyal customer. These customers will continue to purchase from you, because they recognize you are providing a level of service that you can equate value to. They tend not to shop around. Price is not an issue. Finally satisfied customers are more profitable. They recognize the value added of your service and don’t demand pricing discounts when they visit your store. Evidence indicates that 80% of an organizations sales originate from approximately 20% of the customers.
The Framework for a better organization
Regardless of the Department it is extremely important to develop a business strategy. The successful organization has spent considerable time and effort to fully understand all aspects of their business. They found that they must recognize the various processes in the business, what the customer requires and what the competition is doing and finally they must consider how to constantly improve Customer Satisfaction.
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