Customer Acquisition and Retention: Back to Basics

Listen to the Podcast

It is clear that the global economy has entered an extended period of disruption and uncertainty. Very few companies will avoid having to make difficult choices in response to changing customer needs and behaviors, increased cost pressure and new competitive risks.

However, times of change bring opportunities as well as challenges. To survive and even prosper in uncertain times, the clearest path to high performance is to stay focused on the basic principles of customer centricity: securing a trusted relationship with prospects and valued customers, by delivering the solutions and experiences they're looking for today.

For more Accenture insights on staying customer-focused in uncertain times, visit http://www.accenture.com/centricity.

To receive more Research & Insights, sign up for My Outlook, your single e-mail source for all of Accenture's latest ideas and innovation, personalized specifically to your business interests and the industry issues you face.

In this time of intense competition and economic uncertainty, keeping profitable customers is essential. At the same time, today’s market also offers unique opportunities to reach new customer segments and develop new markets.

Accenture’s High Performance Business research has shown that the ability to deliver a differentiated customer experience is a defining characteristic of high-performance businesses. Mastering this ability will serve businesses well in uncertain times.

The duration and long-term impact of the current cycle remains unclear. Nevertheless, organizations in virtually every industry are feeling the impact now, and are responding. Where customer relationships are concerned, these responses span a broad range of immediate tactical responses and longer term strategic planning.

• Strategic Cost Management—Driving cost reduction in the front office, and optimizing ongoing investment in marketing sales and service.
  
  
• Customer Retention—Securing the loyalty of the best customers—and preempting attempts by rivals to draw customers away—by tailoring offerings and experiences to meet changing needs and behaviors.
  
  
• Growth through Customer Acquisition—Seeking opportunities to expand share of wallet, by winning customers from weaker competitors and targeting new customer segments emerging across the global marketplace.
  
  
• Industry Consolidation—As credit begins to flow again, merger and acquisition activity will increase, with companies in many sectors taking this approach to expand offerings, target new customer segments and access new market territories.
  
  
• Globalizing the Operating Model—Globalization continues and organizations will accelerate efforts to capitalize on expanded access to customers, partners and labor pools in emerging markets, to speed growth and improve operating efficiency.

As companies respond to these issues, some find themselves better positioned than others for the road ahead, wherever it may lead. Those that already possessed a strong ability to measure and understand front-office performance—the best-performing combinations of offerings, products, channels and customers—are in the strongest position.

For any organization, however, making urgent short-term decisions with an eye towards long-term risks and opportunities is a daunting task. Many companies are in uncharted waters and will know the right decisions to all these issues only in hindsight. Consequently, now more than ever it is critical for companies to keep the customer at the center of the decision-making process.

In short, the time to be “customer-centric” is now. Confirm who your best customers are, and make sure you know how loyal they are and what makes them loyal. Do the hard work now to tailor your offerings and operations to serve them better during potentially difficult times that lay ahead.

Woodruff “Woody” Driggs is the managing director of the Accenture CRM management consulting service line. Mr. Driggs advises companies in a wide range of industries on creating and maintaining profitable customer relationships by building superior brand value and fostering greater customer satisfaction and loyalty. He has authored numerous articles on CRM-related topics, which have appeared in a range of publications, including CRM magazine, The Harvard Business Review and Outlook, the Accenture journal of high-performance business. Mr. Driggs joined Accenture in 1988 and since then he has held a variety of leadership positions within the company, leading the development of innovative CRM business strategies and new market-making opportunities across diverse industries.