Customer churn reduction
Many large national businesses are built upon the acquisition of many thousands of accounts, comprising those that are very small, to those that are very large or within a governmental supply framework.
It is expected that at the lower end of the account value pareto there will be some drop off, whereby credit terms, economics of supply, or low product or brand loyalty cause customers to come and go with relative frequency and ease. Equally, in such businesses there is a perception of extreme price sensitivity at all levels of account, and the bidding wars that prevail would tend to reinforce this view.
However, it is in this environment that Applied Acumen developed and implemented a revolutionary approach with a client and within a 6 month period halved the industry norm for customer churn, a result which has been sustained and improved upon by that same client, following the principles we forged with them.
If you’d like to know what we did, call the experts at Applied Acumen.
We have many tens of thousands of customers – what level of retention should we have?
The answer is that you get the retention you deserve!
Applied Acumen can help you benchmark your customer retention level, but moreover we can help you identify the level of retention you should be aiming for, and how you can achieve it.
One thing we do know – by following our method you can improve your customer retention. The question is: what would that be worth to you? Call us to find out.
How do you overcome the price sensitivity issue?
All customers are value sensitive, only some customers are price sensitive.
In working with you we help you distinguish between the two, and leverage that difference to your advantage.
Our customer data is not great, can you still help?
Very few businesses have great data, so we are used to it!
Typical gaps in data include:
- Customer address details
- Contract terms missing, or unknown
- Customer contact details not known or missing
- Service history not known, or incomplete
- Pricing benchmarks not known
- Order history incomplete or missing
- Customer needs and wants not defined or known
- Product margin not known
This is not an exhaustive list of the information we would work towards, but acknowledging the gaps is the first step toward improvement.
We put all our efforts in to the accounts of high value – what’s wrong with that?
This is the classic approach taken by almost everyone, and it is counter intuitive to state that it is wrong, but it is wrong!
Your largest accounts have no doubt been won through a bidding war, covering many aspects all wrapped up in a governing service level agreement (SLA) of some kind, but almost certainly the cost was a major determining factor.
Your best sales people and account managers are on it, chasing the high commission and kudos no doubt associated with it, and are possibly tied in to the relationship as part of the contract.
With all the effort, the negotiation, the teasing out of terms, where is this large contract going from here? Will the customer have an epiphany in 3 months, realise that they should indeed have bought all those add-ons and extras that bump up your margin, and throw in a bonus for good measure?
Or will this already-by-definition high spending customer be keen to track your service performance, monitor complaints of it’s service users, and examine which bits of the service they could actually do without and so pick apart the costs to seek savings on this extraordinary spend?
You can’t ignore these big accounts, but how do you deal with this? Contact us to find out.