We have all experienced those times when we bought something, or almost bought something, and later found out we were scammed. At what point does good marketing become a scam? I was inspired to write this blog because I just had that experience yesterday. Back in the fall I bought an educational CD for my kids which they very much enjoy. As they were ready to move onto the next unit yesterday, a message popped up that they couldn’t proceed until a parent paid for an online membership. Now, I paid for the CD and expected to be able to use all of the games. When I called customer service to voice my concerns, they offered to give me my money back for the CD. But that isn’t the point. I had been talking to other parents very positively about this product, and now will stop doing so.
Kotler & Keller define “marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.” (Kotler, P. & Keller, K.L., 2006, p.6) The key terms for me are “getting, keeping, and growing customers”. I can’t help but wonder how many companies today truly practice “marketing management”. Have you ever noticed that your cable company, telephone company, and even your bank will not check in with you while you are their customer? But once you leave, then all of a sudden you get barraged with special offers and lower prices to come back. So, why not offer existing customers those great deals and service to keep them satisfied? It is much cheaper to keep existing customers than to go out and get new ones. So, what am I missing?
In this economy, companies have to focus on the bottom line, which should go hand-in-hand with customer retention. Losing customers is costly. “Even a small reduction in customer defections can significantly increase profits. Because your fixed costs don't change much regardless of how many customers you have, the retention of existing customers is vitally important in maximizing profit. Creating and strengthening customer loyalty must be a top priority of any business if it is to grow and prosper.” (Calloway, J., 2009)
In this competitive environment, that sounds like great advice. What are your thoughts?
References
Calloway, J. (2009, November). Keeping Customers Loyal: The Human Side of Doing Business, The American Salesman, Retrieved March 13, 2010 from http://proquest.umi.com.centhsally.centenarycollege.edu:2048/pqdweb?index=8&did=1888329301&SrchMode=2&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1268533438&clientId=10301
Kotler, P. & Keller, K.L. (2006), Marketing Management (12e), NJ: Prentice Hall
