Response to LUC PARLANGE’S BLOG
After reading Luc’s blog I find myself agreeing and wanting to expand on other points. I agree with the idea that bigger firms must have some more general, financial incentives to satisfy their broad range of customers. Their customers are generally very diverse but there is also simply a large amount of them. In order to satisfy customers but also keep costs at a reasonable level, companies are forced to issue the financial incentives instead of building a personal relationship with its customers.
The second issue that is discussed is how to satisfy previously dissatisfied customers. I agree with timely intervention and contact with the customer after an unpleasant experience are essential for remedying the problem. I believe that once a company is generally established and has a customer base, there should be a focus to the retention of customers as opposed to acquiring new ones.
Obviously, companies should continue to expand their customer base, but for a company such as a telecommunications company such as Telus or Rogers customer retention should be a big priority. The cost of acquiring a customer is generally regarded as more costly because of all the promotional features that are provided to attract new people.
Luc Parlange’s blog: http://blogs.ubc.ca/lucparlange/2014/10/05/the-dissatisfied-customer/
Further reading on the subject: http://www.forbes.com/sites/alexlawrence/2012/11/01/five-customer-retention-tips-for-entrepreneurs/ , http://www.contactme.com/blog/advice/why-its-easier-to-retain-current-customers-than-acquire-new-ones/