Richard Seesel

New Customers and Poor Service

September 3, 2010

FROM RETAILWIRE:
Columnist and author James Surowiecki believes a fixation on new customers is ultimately the root cause of poor customer service levels across corporate America. How does a company keep a healthy balance between addressing new and existing customers?      [more...]

Nothing wrong with expanding your customer base, but not at the expense of your existing -- and potentially most profitable -- customers. As other panelists point out, investment in CRM is still relatively modest despite its proven benefits: understanding the shopping patterns of "best customers," and catering to their needs in order to drive more merchandise per transaction. Smart retailers need to focus on trial when they are expanding into new markets, but need to make a fast turn toward building and maintaining loyalty, almost from day one.