Welcome to the January issue of ValueNotes Connect.
We’d like to wish all our readers the very best for the New Year!
Businesses today are becoming more and more concerned about how their customers perceive them. After all, statistics show that increasing customer retention rates by 5% increases profits by 25% to 95%. And it costs 6 – 7 times more to acquire a new customer than retain an existing one.
While it isn’t very encouraging when a business gets negative customer feedback (particularly public displays of dissatisfaction in the age of social media), addressing it can often work in favour of the company. In our experience of doing voice of customer (VoC) surveys for clients, we’ve come across numerous instances where negative feedback has resulted in new opportunities or increased business for clients.
As global and local economies struggle to grow, traditional sales and marketing strategies are proving less and less effective, where the RoI has fallen significantly and new customers are few and far between. Research has shown that customer retention can do more for your top-line and bottom-line than traditional sales efforts.
Do read our report based on a survey of senior decision-makers to find out how they gather customer feedback and how they use the information.
As always, we hope you enjoy reading our newsletter, and we look forward to your comments.
Bad customer feedback is good for business!
by Manju Karajgikar
|Customer feedback is very important for the success of any business. Half the battle is won by ensuring that there is a constant feedback mechanism. The next step is analyzing the feedback. Positive feedback is good for the morale, and is important to keep the team motivation high. Negative feedback on the other hand helps to understand where the shortcomings are, provides improvement goals, and sometimes even unearths potential new opportunities.|
Why structured “Voice of Customer” studies help in customer retention
by Arun Jethmalani
|As global and local economies struggle to grow, traditional sales and marketing strategies are proving less and less effective. Companies are less motivated to take on new vendors or try new services, decision making is agonizingly slow, and pricing is cut-throat. In this situation, the RoI on sales and marketing has fallen significantly, as new customers are few and far between even as sales costs are rising. At the same time, unhappy customers are more inclined to move to a lower-cost competitor.|
Some client problems we have solved: