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According to the findings of a study by the SAS and Peppers & Rogers Group, retail banks stress more on product lines rather than on customer value. The research states that for retail banks to obtain competitive advantage, they need to shift their focus to the customer instead of the products.

However, the research also found that banks did factor in customer value into their decision making and strategic planning. The methods and tools for evaluating customer value varied between institutions. The research found that very few banks were actually built around customer value and that the majority of customer value applications were tactical rather strategic in nature.

Listening to and acting upon customer complaints can make a significant difference to a company’s bottom-line. It is important to understand that customers dissatisfied with a store or a product do not always complain, they just stop patronizing the concerned store or switch to another product. A high percentage of customers who switch stores do so for good and those that complain often move away if the complaint is not handled properly.

A salesperson who can succeed in making a dissatisfied customer comfortable during the registering of the complaint is on his way to finding a smooth solution to the problem. crm-daily.com says:

After you have received a complaint from a client or a prospective client the first order of business is to determine whether or not the complaint is justified. Is the product defective? Was the service rendered unprofessionally? Be honest with yourself as well as your customer. You will both sleep better for it.

Go to: Transforming Complaints into Customer Loyalty

According to Don Peppers, it is more difficult for companies to get customers than to get business capital. He stated that it was important for businesses to achieve harmony between the current earnings and the customer value. crm-daily.com says:

He suggested that "return on customer" was an equation just like return on investment (ROI) and was essentially the profit from a customer plus the change in value of the customer divided by the starting value of that customer.

Go to: Measuring Return on Customers