What is more Important- Customer Accumulation or Customer Retentions?

J

jijo.thomas

Jijo Thomas
Customers are the heart of every Organization may it be the internal or the external customers. Customers are always glamorized and they are made feel special. Every Multinational Company needs customers to make a successful empire and the amount of money invested in customer accumulation is just enormous. Every possible card is played to get customers – great endorsement, big names, brand ambassador, Market Comparisons, Market Analysis and many more.

But how many company Companies do put in the extra efforts to retain Customers, In the Past two years its been a faster Retention activities carried by most of the Companies. Today shopping is not about making the customer walk into the store and make him buy but it’s about making him feel valuable and tying him up to the Company Eg: Shoppers Stop.

But the Important Question in a Country like India is that How many Customers would like to stay with a particular brands for a long time and that too when it’s a cut throat competition

So would you accumulate or Retain Customers?


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1.Customer retention is important & profitable also
2.If u see from the peroto rule i.e 80:20 means 20 % of your customers give 80 % of business which is valuable
3.For that only giving best experience & service is as imp as Customer relationship in business. That's why every organisation now have Customer Relationship manager / Department.
4.And every organisation try to measure customer satisfaction by
a. Complaint & Suggestion system
b. Cost of Lost Customer
c. Customer Satisfaction Surveys &
d. Ghost Shopping
 
According to me it depends on scale of the business.Mostly, start-ups and mid-tier companies try to retain their customers but once they grow to a large size they try to concentrate more on acquring more customer base than trying to retain them.Simple E.g would be Telecom companies in India which is trying more to acquire more customer base and IT companies which are recruting in thousands.Attrition is biting the IT companies to some extent but they are able to manage it.
 
friend what i think is.. that it depends totally on the type of work u r doing as in some industry it is retention but some where u need to accumulate customers.......
but after some time u need to retain the customers as according to VC of MUL too retaining a customer is approx 4 times cheaper than a new customer as he involves cost of advertisement too........ and another aspect is the "word of mouth publicity" done by ur old customers as if u have retained them they would help in positive publicity for you...
 
it's a chicken & egg situation... u really can't do one without the other, it's like both sides of a hand... stroke it or hit it, it's felt...
 
IN TODAYS COMPETITIVE MARKET CUSTOMER RETENTIONS R MORE IMPORTANT N THIS CAN BE DONE THRU CUSTOMER LOYALTY PROGRAMS....LIKE PROVIDING BETTER COMFORT, GIVING CASH REDEMPTIONS, PROVIDING FACILITIES LIKE EXCHANGE FREE PARKING OR SME LIKE THT....
 
very obvious....both
what is the point off accumlating them n losing them. one wud expect that the customes will show loyalty as long as you exist n hence both these things are important
 
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