Page 0089

Page 88 MAY 2018 | RETAILERS FORUM MAGAZINE

forumworkshop

FORUM WORKSHOP

continued...

A winning business understands the costbenefit economics

of customer retention. Better

service increases prices directly or indirectly.

At a certain point, the higher price diminishes

demand. You have to find the optimum level of

service that will meet the customers' needs at a

price they are willing to pay. Also, the longer

you retain an existing customer or the higher

the repeat purchase factor in your mix of business, the greater

the profit.

It is essential to understand where customers

are coming from. What are their pre-purchase

attitudes? Identifying their attitudes and their

characteristics allows for proper response and

sales strategy. Further, recognizing customer

characteristics (customer types) and reading

the signals each sends, is prerequisite to appropriate

point-of-encounter responses. In order to

know and keep customers, we must know

when to reply, how to respond, how to read signals,

and what to say or not say to each customer type.

Winning new customers and taking customers

from your competition requires marketing

strategy. This strategy is dynamic, based

on demand in relationship to supply and factoring trend

directions.

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