Hanging on to your existing customers has always been more cost effective than trying to source new ones, but in a credit crunch it's essential!
So it's hardly surprising that companies are prioritising customer retention in the face of the economic downturn, according to SPSS, which found that 34% of people they polled rated it as their key current concern against just 8% which are focusing on customer acquisition. It's a sign of the times that in previous years 40% were more interested in acquiring customers, but the current cold climate is seeing an increase in customer attrition rates.
So what's to be done? Well, hardly surprisingly given its business, SPSS goes along with the 68% of punters who reckon that collecting and analysing customer feedback to build better relationships will be a crucial business tool in the next two years to retain customers and increase customer satisfaction.
"The shift in the market is not surprising," said Haydn Lewis, SPSS vice president for EMEA. "In the past few years, companies have been stuck in a cycle of customer acquisition and loss. Previously, customers were much more loyal to one brand but this has recently been replaced by a constant search for the cheapest deal. Analysing customer feedback can determine what makes someone switch suppliers, and prevent it from happening in the future."