Monday, August 03, 2009

Customer Retention is Expensive

In an article by Telephony, global Marketing officers are spending billions on marketing that is wasted. Why?

"The study results, contained in a report “Service Invention to Increase Retention,” found service providers crippled by internal bureaucracies and IT silos that prevent company-wide efforts to focus on and improve the customer experience."

In other words, the organization itself prevents the marketing spend from effectively retaining or upgrading customers.

" money spent to acquire new customers, upgrade their service or sell new programs wasn’t backed up by systems that can acquire and use relevant data about a customer to enable a customer service rep (CSR) to make the most of every contact with a customer to upsell, assuage and even retain that customer. “They are basically wasting a lot of money,” Neale-May said.

They needed a survey to figure this out? Call in to any of the telcos and try to upgrade or cancel service.

No comments: