[Business Times, July 7, 2009]
Focusing on core customers can make a critical difference both now and in the long term
A down economy can wreak havoc on customer relationships. Deep cost-cutting compromises service. And to make up for lost revenues, companies sometimes add new charges and fees, which make customers feel they are being gouged. And the negative effects of lost customer trust can be deep and long-lasting.
Gaining their faith: The advantages of customer loyalty are more pronounced in a downturn. Loyal customers cost less to serve and they typically concentrate more spending with companies they trust
On the other hand, the advantages of customer loyalty are more pronounced in a downturn.