Satisfaction boosts profitability
Puji Astuti, The Jakarta Post, Jakarta
A young woman met her tailor to have an evening gown made to wear to her friend's wedding party on the weekend.
For the tailor, it was a difficult mission since such an order was usually completed in two weeks. But he realized that he was dealing with one of his loyal clients. He had no choice but to fulfill the request simply to satisfy this young lady, who had become one of his regular customers in the past five years and had introduced many of her friends who in turn had become his clients.
Like many entrepreneurs, the tailor has taken a difficult but correct decision in giving priority to a loyal customer with a view to acquiring more new "fish".
According to marketing consultant Jahja B. Soenarjo, the tailor had given his regular client top priority "based on how long he or she had been his customer and the money he or she spent in his shop."
"For large-scale businesses, the selection will be made through thorough analysis," Jahja said.
Generally speaking, he went on, a company could calculate the number of customers who had contributed some 60 percent of its total sales.
"From there, the firm could detect 20 big spenders in their business," Jahja explained.
Top customers could be determined at any time, depending on the type of goods or services. Many theories reveal that consumer goods should be regularly examined within a short period to find out the needs of customers and the market trend.
At Citibank, top priority is given to members of the Citigold Wealth Management Banking program, a scheme in which customers are required to have a minimum bank balance of Rp 500 million.
"Almost 10 percent of the bank's customers have become targets of this scheme," said Meliana Sutikno, vice president of the Citibank Global Consumer Banking.
In the past few years, the bank has carried out a series of serious and entertaining schemes, such as fashion shows, seminars on financial issues and many other things to pamper and retain long-term and big-spending customers.
Jahja stressed that retaining loyal customers was a must and therefore needed money.
"But it's an investment. And maintaining regular customers is much more effective than seeking new ones," he said.
Customers, he added, must be satisfied and all promises must be fulfilled.
"If possible, give them extra service. Delight the customer," Jahja said.
Marketing expert Handi Irawan concurred, saying that a satisfied customer would tell others about the goods or services that he or she experienced, thereby promoting the company by word of mouth.
"They are talented unpaid marketing staff who help lower the companies' promotion budget in maintaining loyal customers. So, satisfaction is profitability," Handi said.
But not all firms single out priority customers. PT Indomobil Niaga International, distributors of Suzuki cars, for instance, treat all their customers as their top clients.
Inasanti, head of the promotion department, said that they adopted that policy since the automotive sales sector differed from other businesses and customers rarely purchase cars.
"Our priority is simply to give all customers the best service, including after-sales service such as spare parts and to (boost) sales as well," she said.