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Customer Behavior

2010/09/29

Howard Hyden – Day 2 (Read the post from Howard Hyden – Day 1)

My nugget from day two’s session on Customer Focus was about Customer Behavior. We looked at reasons why customers leave and looked deeply at the #1 reason – indifference. We brainstormed what indifference is – attitude, missing deadlines, using techno-speak, and more. One of the more striking exercises of the day was calculating the lifetime value of a customer, which included hard numbers and 4 factors for a more subjective ‘word of mouth’ calculation. After applying Howard’s formula, it was easy to see that the stakes of losing a customer are high not only in actual dollars, but reputation and market share. Adding value to the customer which creates positive word of mouth are a MUST for business.

On the flip side, we explored the value of a business to its suppliers. Does a supplier really understand the cost of losing our business? Knowing the lifetime value of a business to its supplier gives a company a powerful weapon to leverage and hold suppliers accountable for better service level agreements.

It was a great two days learning how to see things from the customer’s viewpoint and how to implement changes to make a company more customer focused. I look forward to finding ways to deliver Howard’s message to more of our RSPA member companies.

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One Comment leave one →
  1. 2010/10/10 4:17 pm

    Lauren – it was a pleasure to have you join us for the recent Howard Hyden training workshops(www.howardhyden.com) held at our site. Your passion, insight & comments helped the entire group gain some perspective and deeper insight about what really happens in the POS marketplace. We all get busy – doing our day jobs – getting our product or service out the door. It’s critically important at times to stop and work “ON” the business, as opposed to just “IN” the business -and Howard’s workshop was terrific at that for us. I’d highly recommend it for any RSPA member (vendor or reseller). We came away with over 200 useful & powerful suggestions to help us continue to get better at creating & delivering value for this marketplace. Thanks! Mark

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