Member Since: 28th Apr 2011
28th Apr 2011
Paul Blunden raises some interesting thoughts, and I agree that this type of article and the ensuing discussions are very helpful. He is right that some companies are better at this than others, and I would add to the point that importantly, in my experience those companies who do it well tend to enjoy many/all of the 5 benefits that the author points out. Many of these customer-centric companies also develop into iconic brands, with a strong reputation for providing superior customer experiences.
One final observation, and this relates to the example of different companies like the hotel company versus the retailers or an airline. The ROI will play out differently for each type of company, more specifically each company would enjoy a different mix of the 5 benefits cited by the author. In hotel companies, for example, customer retention/loyalty and repeat business are clearly very dominant ROI's -- it is not unusual for a hotel chain to derive 75% or more of its revenues from a core group of highly loyal customers. Retailers, on the other hand and as the author points out, derive tremendous ROI when positive word-of-mouth results in new customer acquisition; otherwise they must spend large sums on advertising.