Re: UKNM: Customer retention

[Fiona Campbell-Howes]

>>How do you identify the bad customers without removing any of the good

ones?<<


Client of mine did some research recently into big clicks 'n' mortar blue

chips, none of whom had worked out how to answer this question properly,

including the mightily customer-centric [insert name of successful

phone-based bank].


It's all about measuring "customer lifetime value" and "share of wallet",

theoretically.  Trouble is, no one has worked out how to do this, with the

possible exception of Barclays and its infamous fruit-based customer

deselection strategy (which going by its latest efforts appears to apply to

anyone who lives in a rural or semi-rural area and doesn't have internet

access.)



----- Original Message -----

From: Ben Thompson <

benbabyhippo [dot] com

>

To: <

uk-netmarketingchinwag [dot] com

>

Cc: <

philflow-interactive [dot] com

>

Sent: Monday, September 18, 2000 3:57 PM

Subject: Re: UKNM: Customer retention



> Phil,

>

> I can't see what customer retention has to do with Usability. Heck I used

to

> work at Boo. Ian T, myself and any of the other 300 employees who paid

> attention, know large amounts about how not to run, manage and design

sites.

>

> Simply put, and from dire experience a site that is poorly designed and

hard

> to navigate will ensure that you don't have many customers to retain in

the

> first place.

>

> Terry,

>

> Its like all marketing, half of all moneys wasted, trouble is no-one knows

> what half.

>

> Also, as the web makes many costs virtually fixed there is probably little

> point identifying the good customers compared to the bad. For instance

think

> how much an email costs to write relative to the cost of sending it. For

the

> website to be built relative to its on going running costs. Chances are

the

> costs of retaining the good customers is probably 90% of the cost of

> retaining both the good and the bad ones. And you can't identify them as

> well as you think you can.

>

> My original question was based on some observations over the past week and

> on this list.Especially a couple of sites (not naming any names) who

appear

> to going out of their way to encourage new customers (and their old

> customers to pretend to be new ones).

>

> As is often the way though the questions above are probably more

interesting

> then the original one. Especially, how do you identify the bad customers

> without removing any of the good ones?

>

> Ben

> --

> Give your visitors �1,000,000 reasons to return.

> Add a LottaLotto.co.uk lottery to your site.



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