The cost of acquisition versus the cost of retention

Having worked in retail all my life I hold customers in the highest of esteem, yet many of the organisations that I am a customer of seem to treat me with near contempt.

During the past 12 months I have had long and detailed discussions with British Airways, Nissan Motors and British Gas to name but three. They all have very polite and caring staff but are unable to make a decision based on my opening conundrum.

In most cases they could have solved my problem at virtually no cost to themselves by simply conceding on tiny matters of policy.  If they had done so, not only would they have retained me as a customer but I would, most likely, have become an advocate.

The usual excuse given is that “it is policy”.  But what kind of a policy is it that leaves your customer fuming?

As a result of my background I am well aware that the cost of acquiring new customers is many times that of retaining existing ones.  My frustration is therefore based on the fact that not only could they solve my problem easily by simply being a bit more flexible, but that it would also be good for their business!

Doesn’t anyone teach basic marketing anymore????

 

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