BUILDING B2B CUSTOMER LOYALTY:Make sure the squeaky-wheel accounts don’t get all the oil

A recent article in the Wall Street Journal generated discussion about low value B2B accounts harming the retention of loyal, high-value accounts. Account value is as you define it for your business -- as long as update the definition of your ideal account and apply retention strategies accordingly. When you revise the ‘ideal’ criteria, moving this information throughout the organization among all the functions that touch these accounts, is very important.


Less Than Ideal Accounts
One emerging characteristic that can be a key differentiator is slower payment speed – as the B2B account ties to improve its own cash and assets. If these same accounts are also demanding more product exceptions, service enhancements and order changes, they may no longer be your “ideal” customer.

Unintended Consequences
Many companies are running very lean; handling these exceptions and disputes can disrupt customer service and cause dissatisfaction for the ideal, loyal customers. Deteriorating service to ideal accounts can take the form of delayed response, inattention to detail, poor follow-up and outright errors. All of which can convert your loyal and ideal accounts into vulnerable revenue sources - the worst unintended consequence.

Remedial Homework
I’m not suggesting that troublesome accounts should be ignored, neglected or “fired”. However, it's crucial that while you are trying to transition them back into ideal accounts, the effort is not at the expense of ideal accounts.

So the definition of an ideal account must be current. Sales, service, operations, billing, product development and senior management need to apply it consistently.

And... make sure the squeaky wheels don’t get all the oil!

You can view the Wall Street Journal article here: http://online.wsj.com/article/SB10001424052748704328104574520112839377366.html?mod=article-outset-box

Brian Shepherd


Accountcaffeine.com

Shepherd Consulting LLC

415-516-8433

http://www.linkedin.com/in/briansshepherd

brian@accountcaffeine.com