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Four P's of Customer Retention
It has been about 40 years since marketing professor (and later guru) Dr. Philip Kotler coined the concept of the four Ps of marketing – product, price, place and promotion.
Although today is still valid, original Kotler's four Ps not have as much application to customer retention, and to do to acquire customers.
A more appropriate set of the Four P's to the area of customer retention are People, policies, processes / procedures and Prevention. Here are some thoughts on each of these attributes, and its importance in achieving higher levels of customer retention:
People – staff must be motivated, trained, and let it be focused on the client. TLC – to think like a customer – should be standard operating procedure. The staff must have a willingness to listen to customer concerns and ask questions that uncover the exact nature of these concerns. Customer care is exacerbated by the consistent presentation of the ethic of service. must maximize the internal culture will all staff to work well with colleagues and promote the desire to learn jobs outside their immediate areas of responsibility. Most importantly, you want the staff that consistently exhibit high energy and enthusiasm for their clients.
Objective: Do not let people drive your customers away!
Policies – the policies musts be flexible, scalable and customizable. Delete the phrase "is our policy," the vocabulary of the organization. Form and train staff, particularly frontline staff, to interpret and apply corporate policies and guidelines on how to do business and engage with customers. Policies that business ethics and concern that could have a significant impact on profitability will undoubtedly be followed to the letter. However, policies having to do with internal procedures and processes, and have a direct impact on the ability of the organization to meet the needs of each client, use as guidelines to help employees handle specific customer situations.
Objective: Do not let your anger policies to your customers!
Processes / Procedures – these should be as simple and straightforward as possible, to provide greater convenience, speed, and ease of access to their products and services for customers. Sign-offs and licensing procedures should be more flexible for existing customers and prospects to new customers. When doubt, reduce odious procedures and simplify processes for existing customers by providing higher levels of confidence. (A good example – why a hotel requires a credit card from a guest who has stayed in the hotel numerous times before? After all, a guest who returns with a record Multiple residence is unlikely to abscond without paying the bill.)
Goal: do not let your procedures and processes customer inconvenience!
Prevention – One of my deeply held beliefs of marketing is the prevention of customer complaints is better than solving them. In my second job while in school secondary business owner taught me in his favor, 7 P's of success in business (excuse the language): proper prior planning prevents urination of poor performance. To keep good customers, your organization must commit to the quality (as defined by their customers) from the top down and bottom upwards. Eliminate errors and eliminate many of the main reasons customers have to exit.
Goal: do not let mistakes cause customers to leave!
As Kotler original four P's, above all focused inward. But, unlike the traditional four P has learned in all basic marketing courses, P retention of the four client are designed to be applied to existing customers already captured through the long tradition of the marketing mix.
Customer retention is the art of keeping good customers. This art is best applied through a concentrated focus on the four Ps of customer retention – People, Policies, processes / procedures and prevention.
Wake up these four P in your organization and see their customer retention levels amount to heights previously only dreamed.
About the Author
Steven Howard is a leading positioning and marketing consultant, with over 20 years senior marketing and sales experience throughout the Asia/Pacific region. This article is excerpted from his book “Powerful Marketing Minutes.” Visit his web site, Howard Marketing Services for valuable information on marketing, branding, and corporate social responsibility.
Philp Kotler on Marketing Lessons from Barack Obama’s 2008 US election campaign – a BVO interview