Marketing has entered a new phase where virtual communications are the standard and being “on-line” is a given. Potential customers search for products/services, look at websites, read reviews, email questions, and get an idea of the company’s concept or brand through social media. While these elements are important, the comparative success of marketing techniques is largely variable from one industry to another. However, any business, regardless of industry, size, location, or target market, loses 30 percent of its customers each year. In spite of this fact, the marketing budgets of most firms are 80 percent or more focused on finding new customers, as opposed to retaining customers.

Customer Retention

Customer retention is a serious issue and it can serious affect the bottom line. In order to solve the quandary as to why customers go elsewhere, you have to start by asking yourself a few fundamental questions:

-          Why did they come to you in the first place?

-          Did you deliver on that concept?

-          Did they go to a less costly competitor, one with better service, or one with better products/services (e.g. more features, specific features)?

The fact is that almost 70 percent of customers leave because they are unhappy with the service they receive. Their complaints, while they may include something such as may clarity of rules (e.g. certain items/services excluded from a sale), communication (e.g. received no response to an email or phone call, no notice of a delay in delivery) is a far bigger issue.

Communication Tools

To this end, a variety of services, many of which are free or of very low cost, have emerged. They allow you a framework for communication with your clients: complete with a calendar of milestones and expected completion dates, a place to upload files (including the very large ones difficult to email), a message board to ensure communication between all parties, a common information board (e.g. contact information, project outline), and an overview of what has been uploaded, posted, or added most recently. There are three main players: SharePoint, Basecamp, and Google Wave. Each is very different from the other.

SharePoint

SharePoint is a creation of Microsoft. Its primary function is to facilitate communication within a team; the primary focus is on content management. SharePoint is the best in situations where there is a volume of documents integral to the project, as SharePoint has great sorting features. It also allows for customized workflows and certain automation of processes. It works well in situations that include a large number of players, a large number of documents, and a high need for customization. It is commonly used at an organizational level and is common in larger companies.

Basecamp

Basecamp is a simple program. It is allows its users to share documents, post messages, upload files, record milestones, and have an overview as to what has happened with regard to the project most recently. It is best used in environments where a company has a variety of projects ongoing, each with varying timeframes, and in scenarios where there is a different level of involvement for each player, such as one suppliers may be involved in two projects while another may supply necessary components to all but one project.

Google Wave

Google Wave is an amped up version of Google’s Gmail system. It has a shared calendar, capability for real-time updates and chats, and document sharing. Google Wave is the newest of the three main players but, owing largely to the ease and familiarity of the Gmail system, many users find it easy to use. Accordingly, email integration is the easiest of the three systems profiled here. It is most useful in scenarios that benefit from integration – Google Wave is able to integrate into other websites. It has less of the project management focus (as in Basecamp), but is not quite solely at the organizational level.

In addition, some companies will opt to create a private group on a social media site, such as Facebook or Linked In, or take advantage of a create-your-own network site, such as Ning.

The Concept of “Team”

Whatever method you choose, success in business is all about the team. When you start a business, the focus is on building your internal team. As that business grows, the concept of “team” is expanded to include suppliers, distributors, customers, and complementary product producers. Keeping your standard of communication and team integration high can help ensure that you retain a greater percentage of your customers and, in doing so, achieve success.