Importance of customer retention

For customer satisfaction to be high, promises and expectations must be met.

This involves the organization's ability to understand customer expectations and

to do it right the first time (DIRTF). The ability to deal with problems as they arise

is a key ingredient to success.

Customers who have an issue dealt with to their satisfaction have a 95%

likelihood of repurchasing and telling 5 people about their experience; if

they don't complain (as 96% of people do) they will tell at least 10 other

people about their problem.

 The occurrence of problems can cause a 15-to-30-point drop in highsatisfaction

responses and in loyalty indicators. This puts revenue at risk

to the average tune of 11%.

So, some techniques to maintain and improve satisfaction must be considered.

An effective complaint handling system is an excellent defensive tool. Ongoing

surveys to measure customer satisfaction and loyalty, and capture the voice

of the customer are also essential.

The biggest problem, however, is that companies do not manage the customer

contact experience with sufficient detail. Therefore I often recommend my

Customer Experience Workshop as an effective analytical and improvement

tool. It is pragmatic and leads to quick results.