Satisfaction boosts profitability

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.