Leaky Bucket Concept
This concept is a very simple basic idea that assumes Total Market Share of a company as a bucket with water as customers. A hole in the bucket causes water to flow out. The same happens with customers. In order to either increase or at least retain our market share, company now has to start attracting new customers, or pull competitor’s customers. These are the two ways.
The first one is to find more customers than those going out. This can be done by techniques like Branding, Product Differentiation Marketing, Targeting a new segment etc. But as basic marketing rules say, It is 5 times cheaper to retain a customer than to get or target new ones this technique becomes the secondary choice of intelligent marketers.
The second tactic is to fix the leakage. However an Ideal situation with zero customer loss is never possible, but reducing the loss of customers or in other words making sure that the leak is small and never grows is a better idea. The diagram below gives a basic idea of the concept.
Now how do we fix the leak?
As mentioned above fixing the leak totally is an ideal situation which is hard to achieve unless your business is a Pure Monopoly, However using Salesforce CRM Techniques can effectively help you retain your customers. Any company would want repeat purchases of its products and for a repeat purchase one must make sure that his customer is always happy. Not only repeat purchases, but a happy customer can be a one who is suggesting his friends and relatives the same product they use. Hence a happy customer is indirectly a Brand Ambassador for your company, and a unhappy customer may be a Damager of your Brand Image.
Customer is the King… and King must always be Happy.
How a Salesforce CRM works?
As simple as the above block diagram. It will help you make a good customer database which helps you to divide your customers into different types and heads. It provides a centralized way to collect, consolidate, and share data with the present as well as past customers. You can analyze them using it to learn their needs and complaints and understand the reasons which are making your customers unsatisfied. These issues can be addressed by solutions which would help in a proper Customer Relationship Management and this can be done effectively by Salesforce CRM. Salesforce is the most popular cloud-based CRM software, claiming 14.8% (highest) of the entire CRM software market with its own testing framework and more standardized which gives it a simpler operational profile.
Author is Techno Functional Consultant at leading Salesforce Consulting firm “SFclouds Technologies”, Providing Consulting on Salesforce.com CRM, APEX, Mobile Applications. You have good opportunity to grab veteran professional cloud based services at “SFclouds“. Take free trial offer on CRM for Nonprofits from Salesforce Inc.