Concerned about competitors stealing your customers
during these tough times? Here are some factors to consider, according
to Market Ownership: The Art & Science of Becoming #1, by William A. Sherden.
1. Improve the quality of products and services.
2. Target relationship-oriented clients.
3. Control distribution systems:
- Restrict sales to targeted clients.
- Select non-shopping-oriented distributors.
- Train sales staff to be customer-oriented.
- Make sure that the sales organization stays on top
of clients’ changes.
- Cross-sell additional products and services.
- Provide incentives to retain customers.
- Interview customers prior to their repeat purchase
decision.
4. Maintain a stellar image:
- Manage the company’s image on an ongoing basis.
- Avoid problems that suggest the company has low integrity.
- Recover from those problems that do arise.
5. Price to address volatility:
- Smooth out prices over time.
- Charge on a multi-product relationship basis.
- Change from fixed to variable pricing.
- Charge fees for early departure.
6. Exit/outsource volatile components of products or
aspects of the business.
7. Make service and production employees attentive
to customers:
- Train on customer relationships.
- Give incentives, where appropriate, for good retention.
8. Employ relationship-building tactics:
- Improve employee job satisfaction and otherwise retain
employees in order to benefit from relationships between long-term employees
and customers.
- Institutionalize relationships to involve more than
a single employee.
- Maintain contact via visits, mailings and telephone
calls.
- Build electronic linkages to clients.
- Offer private-label credit cards, frequent-user programs,
and clubs.
9. Other tactical approaches:
- Create a retention desk to intervene in the defection
process.
- Offer consolidated statements.
- Change to automatic and/or more frequent billing
methods.
Excerpted, by permission of the publisher, from Market
Ownership: The Art & Science of Becoming #1 by William A. Sherden. Copyright
William A. Sherden (AMACOM). For more information on AMACOM business book
titles, click here.
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