How Can Customer Retention be Measured?

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M

madannc

#2
Re: Customer retention

Not sure what you are asking QA Lady.... few more details please
 
Q

QAlady

#3
Re: Customer retention

Thanks for the immediate respond. The company is loosing its customers... a freight forwarding business. Whew! I'm sorry... I may sounds so idiot but I need some ideas for customer retention. People can't realize that customers are going away. I hope you can help me.
 
M

madannc

#4
Re: Customer retention

Thanks for the immediate respond. The company is loosing its customers... a freight forwarding business. Whew! I'm sorry... I may sounds so idiot but I need some ideas for customer retention. People can't realize that customers are going away. I hope you can help me.
OK I think you are talking about customer satisfaction... why are you losing the customer... things to consider

Do you know what your customers want?
When implementing new services do you use QFD? Kano? VOC?
Are you aware of what your competitor is providing (better/worse/cheaper)
What level of complaints do you get? how are these investigated and what CA's are put in place... have the CA's been effective?

retaining customers and getting new ones is about service and cost

Cost reduction activities such as "lean" help smooth the process and improve consistency by removing wastes (excessive paperwork, travel, reworks etc etc)

You need to look at service you provide does it meet your quality/mission statement... is this statement valid, consider gathering customer information about what they like/dislike, prioritise these needs.

I could go on and on

but I would suggest looking for threads regarding; customer satisfaction, lean, QFD, Kano modelling, complaint handling.

hope this helps
 
M

madannc

#5
Re: Customer retention

Just read again if you are asking can management see they are losing customers... I would like to think they would, but as above there are things that can be done to prevent recurrence and gain more...
 

Randy

Super Moderator
#6
Re: Customer retention

Contact them and ask them why they left. The worse thing they can do is hang up.

When and if you find out, fix the problem or start turning out the lights.
 

atitheya

Quite Involved in Discussions
#7
Re: Customer retention

Can a customer retention be measured? How? Please hekp
The company is loosing its customers... a freight forwarding business. Whew! I'm sorry... I may sounds so idiot but I need some ideas for customer retention. People can't realize that customers are going away. I hope you can help me.
Every company maintains a record of their regular customers. Monitor that for a period of time. Analyse your sales records, e.g.

I) Compare numbers -

Regular customer base at the begining of the period A
Current repeat customers from above B (retained customers after one year or a specified period)
One time customers (if any included in A) C
Customers retained (%) (over the specified period) [B/(A - C)] * 100

II) Compare revenue generated

Revenue from A Ar
Revenue from B Br
Revenue from C Cr
Revenue from retained customers (%) [Br/(Ar - Cr)] * 100

List out the customers who have moved away and analyse the cause and effect to your business.

Above is not a validated calculation but came to my mind as a logical answer to your situation. There may be many other ways of comparing the statistics

and finding out the losses made due to losing out customers, such as comparing number of orders etc.

You may get these figures from sales / customer service departments and customer surveys and follow-ups. Customers themselves can give you valuable information.
 
Q

QAlady

#8
Thank you so much for the help ... your ideas / suggestions will surely help me. I am looking forward for more suggestion. You guys are great. Thanks thanks:applause:
 
H

Howard Lee

#9
Contact the customers that you still have. Ask what they like/dislike? Ask what you could be doing better? Don't send out surveys, get someone with really good people skills to do it. Make your customers feel special or keep that resume handy.
 
P

pldey42

#10
Contact the customers that you still have. Ask what they like/dislike? Ask what you could be doing better? Don't send out surveys, get someone with really good people skills to do it. Make your customers feel special or keep that resume handy.
Yes, and maybe think through the specifics before calling them. It's freight forwarding, so presumably customers expect stuff to get to the right place, on time, and not broken. Maybe ask if it actually is on time - and what if it's not? Do they expect a proactive call saying it will be late? Do they get one? Does it get to the right place? -- In one piece? Are the drivers courteous? Do they follow the rules on the customer's site?

Do you forward overseas? Does it get stuck in Customs? Do they expect you to ride herd on it through Customs - and do you do it well? If it's late, do you take responsibility for the full service or blame third parties that they expect you to manage for them?

And, of course, is the price right?

To sum all this up, perhaps ask them what they measure (on-time delivery, breakages, etc) and see how you stack up.

Just a few thoughts,
Pat
 
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