“Companies that do a very good job of retaining their customers and developing the value of everybody over time should be awarded a much higher multiple than another business that does not retain their customers as well, even if the historical revenue patterns look exactly the same.”* This makes a case for businesses to focus on retaining their existing customers through innovative practices.
The digital era helps consumers stay well informed. With news and information being accessed and passed on every fraction of a second, today’s consumers are not only smart but also know exactly what they want and where it is precisely available—this could be through a digital medium or via the usual bricks-and-mortar store. They are hence driven by the power of choice—either seek options online, which requires almost no effort, or the traditional route (visiting a store to purchase or consider the click and-mortar model, which a number of offline and online businesses are adopting). This suggests that the ability to retain a consumer’s interest in any business model is becoming increasingly difficult, considering the numerous choices available. This is invariably supplemented by the need for businesses to redefine their customer acquisition strategy which is equally important.
Being an active fintech player in the area of payments, we generally service the end customers directly or through other businesses. It has become imperative for us to keep the end consumer at the centre in order to develop innovative and effective solutions. While conceptualizing and developing seamless solutions is the basic essence, understanding what potentially influences the buying decision has become another fundamental. Legacy businesses are gradually adapting to this paradigm shift and the progressive nature of an individual’s buying habits. As far as emerging businesses are concerned, only a handful have been successful in deciphering the code. It is visible that success here lies in increasing customer loyalty and retention. This inevitably is followed by customer acquisition, considering consumers are vocal about their choices and experiences.
customer loyalty
This story is from the March - April 2108 edition of The Smart Manager.
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This story is from the March - April 2108 edition of The Smart Manager.
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Building A Quality Culture
A strong company culture defined by its values, beliefs, and behaviors, has a profound impact on its products and services. More so in today’s VUCA world, where to stay relevant and maintain a competitive edge, it is critical for organizations to build a culture that focuses on quality. Suresh Lulla, author of Quality Fables, elucidates through significant examples how creating a culture of quality is imperative to driving success and productivity.
Customers For Life
The history of General Motors in India can be traced back to the 1920s, when it became the first automotive company to set up an assembly plant in the country. The relationship since then has not been as fruitful as GM would have hoped. GM’s flagship brand, Chevrolet, was introduced in India to build upon the success of the popular Opel marque. However, success has been fleeting at best—an issue that GM India is determined to rectify. It aims to do so by adopting a two-pronged approach: using customer feedback to influence product development, and delivering a superior sales-to-service experience.
The Digital Shift
… technology will radically disrupt HR in the near future. Indeed, it is already changing the way HR works and the role it plays and opening the door to a new type of “digital HR” function.1 The rise of digital and social media is changing the dynamics of HR and creating new ways of hiring, engaging, and retaining employees.
The Story Of Telling
“The best brands are built on great stories,”* this remark by Ian Rowden best captures the strategy of diligent brand building. Much more than attractive logos or the products themselves, what builds a brand is how successfully a story is woven around it. Brand marketers have to be good storytellers indeed.
Complexity Is Simpler Than You Think
Kay Kendall and Glenn Bodinson, authors of Leading the Malcolm Baldrige Way, shatter myths about excellence models such as Baldrige and EFQM.
Proponents of Isolation Never Become Victors
Multilateralism in the political and economic space has always led to frameworks that favor the mighty. WTO was no exception. With agriculture kept out of its purview, it could never become a truly fair and free trading system. China was the only large emerging economy that exploited relative openness in low-cost manufactured goods to take full advantage of the system. Other emerging economies could at best garner minor gains.
A History Lesson (From Year One) for Trump and the Brexit Crowd: Isolationism Has Never Worked!
Professor Stephane Garelli on growing isolationism.
A Win-Win Game
Business is not a sport where some stakeholder has to lose or fare badly for others to do well. Building an atmosphere of trust and transparency between all stakeholders will help companies retain them even during adverse times.
A Sustainable Model
With a total market value of $4.3 trillion and an employment base of at least 1.3 million direct employees and millions of others indirectly employed, platforms have become an important economic force.*Companies today are constantly looking for ways to build platforms—Infosys Ltd announced its plans of monetizing its platforms to make them a $2 billion business by March 2021. But are all platform businesses successful?
Custom Made
…three in four consumers said they receive too many emails from brands, and one-fifth said they could not handle the current volume…69 per cent have ‘unfollowed’ brands on social media, closed their accounts or cancelled subscriptions.*In these times, when the market is flooded with products and services, the most efficent way to engage customers is to offer them customized content. To achieve this, brands need to focus on observing the nuances of individual preferences.
