Web Genius Blog

Here is an interesting article from our Texas-based Web Genius partners Bryce Dixson and Jean Rowan which was published in the December 2nd edition of the San Antonio Biz Journal - enjoy :)

Technology can help companies strengthen customer relationships
Jean M. Rowan and Bryce H. Dixson

Marketing is all about relationships. Especially in today's service economy, it is clearer than ever that people buy people. Yet, the average American business loses 20 to 30 percent of their customer base every year -- mostly due to complacency. Frederick Reichheld in his book, Loyalty Rules, shows definitively how any business can add no less than 25 percent to their bottom line profits each year simply by retaining a mere 5 percent of the customers who might otherwise wander out the back door.

But sadly, when faced with choices on where to spend marketing dollars, the vast majority of businesses spend all their available marketing resources chasing new customers. Why? Because it's easier to do passive advertising to a generic audience than to learn more about a market, talk to customers, and develop a customer retention strategy. In fact, it's astounding how much the average small business will invest in passive advertising in an attempt to lure new customers when they usually have a substantial existing book of business just waiting to buy more services or refer a new prospective customer.

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