Selecting targetNatural referralAffiliation networkRelative advantageSwitching costPoint of entry
Relative advantageAnother source for new product ideas is trackingCustomer complaints .In fact, some modern businessconsultants urge businesses to viewcustomer complaints as a gift.
Eliminate excuses to stay with the competitorSwitching costThe key element of many offers is to make switching from acompetitor easy.Product sampling andMoney back guarantee areanother ways to reduce theperceived cost of switchingfrom a competitor
Point of entryFor many products it’s possible to predict the point of entrywhen a never-before-consumer becomes a customer or userof the service.The transition from nonuser to customer often coincideswith a particular life event or lifestyle change.
Point of entryThe logic underlying customer acquisition at point-of-entryis as follows1. develop a system to identify who is most likely to enter theproduct category2. determine when entry is most likely3. be the first to establish a relationship with the first timebuyer
The welcomeReliabilityResponsivenessRecognitionPersonalizationReward strategy
The welcomeFundamental to a retention strategy is the notion thatmaking a sale is the beginning and not the end of themarketing effort.A welcome strategy acknowledges the organizationappreciation for the initiation of a relationshipPurposes : making first impression: provide touch point where additional info maybe collected: reassure the customer made the right choice
The welcomeMaking first impression : a good first step is to thank thecustomer for the orderProvide touch point where additional info may becollected : item purchase, zip v code, preference contactmethod, etc will be enter into each new customer’s record.Reassure the customer made the right choice : Cognitivedissonance is a psychologically uncomfortable postpurchasefeeling.
ReliabilityOrganization can repeat the exchange with the same satisfyingresults.When customers make repeat purchases they expect consistentperformance.
The quality of being responsive; reacting quicklyResponsiveness
RecognitionSpecial attention or appreciation that identifiessomeone as having been known before
Reward strategyFrequent buyer programs were among the earliest effortsto retain an organization’s best customers.Typically, frequent customers are awarded redeemablepoints that can be converted into free services, upgrades inclass, and/or exchange of other products and servicesIt creates an opportunity to keep in touch with thecustomer monthly or quarterly when a points statement issent.Many reward programs also build in switching costs fortheir customers as a barrier to exit a program.