Research reveals why customers leave?

28 April 2010 Leave a comment

Based on a worldwide survey conducted across a range of industries every year since World War II, figures reported in the Capital Region Business Journal, August 2006 highlight the real reasons why customers leave one business in favour of another.  They are:Why customers leave

  • 68% - Perceived indifference
  • 14% - Dissatisfied with Product/Price
  • 9% - Sold by a competitor
  • 5%  - Influenced by a friend
  • 3% – Move away from the area
  • 1% -  Died

The actual reasons why customers leave are rarely the ones that they tell you; and the biggest reason of all is perceived indifference.

Once a customer has left it becomes more difficult and costly, if not impossible, to regain them.

Compared to the cost of replacing a customer, appreciation is arguably the cheapest and easiest form of marketing that your business could deploy.  And it’s even easier with the right tools such as RealCardSender.

Filed under Business, Customer Service, Leadership, Management, Marketing, Measurement, Selling, Systems Tagged with , , , , , , ,

What the best enterprises are doing to consistently increase ROSF

19 April 2010 Leave a comment

12 of the usual suspects!  According to Phil Ruthven, Chairman of IBISWorld, as reported in BRW April 8-14, 2010, p17.

[In surveys by IBISWorld over the past decade, it has been found that about 1/4th of the nation's largest enterprises match, or do better than, world-best practice in profitability over a 5 year period.  1/6th of them exceed an ROSF (Return On Shareholder Funds) of 25% pa, and almost 1/10th do better than 8 times the bond rate (which averages approximately 6% pa over 5 year periods, indicating almost 50% ROSF pa.

Interestingly, the successful firms that do manage to achieve world-best practice averages are less frenetic and less complicated than those that don’t.

So what do they do that’s different?  It seems they do the things we all expect, as below, in rank order.  They … Read more of this post

Filed under Business, Directorship, Equity, Finance, Leadership, Management, Measurement, Organisation, Planning, Productivity, Profit, Strategy Tagged with , , , , , , , , , , ,

Turning great strategy into great performance

12 April 2010 Leave a comment

Companies typically realise only about 60% of their strategies’ potential value, and that’s from good strategies.  The failures are typically because of defects and breakdowns in planning and execution.  By strictly following seven simple rules, you can get a lot more than that, according to Michael C Mankins and Richard Steele writing in the Harvard Business Review, July-August 2005.

Read the full HBRGreatStrategyPerformance article to discover and consider the 7 steps to successful execution as they may be applied to your own business.

Filed under Business, Directorship, Entrepreneurship, Leadership, Management, Measurement, Organisation, Planning, Productivity, Strategy Tagged with , , , , , , , , ,

Follow

Get every new post delivered to your Inbox.

Join 83 other followers