Posts Tagged Customer Retention

Is doing what you promised enough?

I have been a Rhapsody music subscriber for some time. I love the idea of music on demand and never paying for individual tracks. I love downloading a new artist and then later deciding if I like them without incurring any incremental cost one way or the other.

What I don’t like is the fact that Rhapsody has not figured out an application for the Blackberry. I can either play music on my Rhapsody compatible player or on my laptop. Rhapsody has apps for both iPhone and Droid but no blackberry and while I’d love to switch to either, I’m bound to a standard corporate issued blackberry.

Before this comes off as just another rant, let me say this post was prompted by an interesting thread going on in the Rhapsody community. It’s interesting from the standpoint that there are a lot of annoyed, loyal Rhapsody subscribers out there waiting for a blackberry app. But even more interesting is some of the arguments being made both against and in defense of Rhapsody.

The argument against: This app was more or less announced last year as coming in “early” 2010. Hmmm… well clearly, they missed that one. There’s supposed to be a beta coming out but I have not heard of anyone being chosen, so I can only assume its not out yet. People are waiting, people have expressed a want / need, and Rhapsody has more or less failed to deliver on this. This in turn has prompted some customer defections.

The defense: One writer makes the point that when we signed up for Rhapsody, a blackberry app was never part of the deal (unless you signed up with the expectation that the app was coming). We willingly signed up or continue to subscribe despite alternatives out there, so really it’s not like there’s a real disservice going on.

So if you buy the latter argument, I ask this question…

Is it enough to provide exactly what customers signed up for (and nothing more)?

Is it enough to justify the disappointment being expressed across a broad community of blackberry / rhapsody users? To me, the answer is like everything in marketing, and that is “it depends.” Here’s my thoughts on when it’s enough….

1) When you’re the only game in town. That’s pretty obvious, and in this case we all know Rhapsody is not the only game in town.

2) When you…  um…. well, ok, there’s really only one reason.

I guess you could say there are ways to better communicate value, to create community, and all that jazz. But at the end of the day, when customers have expressed a need that can be met by a competitor, continuing to do just what you say you’re going to do isn’t enough.

So the only question remaining is, why am I still with Rhapsody? Like so many on the referenced thread, apathy – a powerful attribute which will keep customers around for a bit (think cable and phone) but sooner or later that goodwill will run out. The irony is that rather than spend the hour or so to switch services, I instead chose to write this blog. So obviously, I haven’t reached that tipping point yet, but I’ll let you know if we get there.


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The focus on customer retention

So I realize I’ve been harping on this for a while, but I just got this update from e-marketer that got me fired up. As reported by e-marketer, a study by Unisfair reports that 6/10 marketers say customer acquisition is a critical priority. No surprise. What is  surprise however, is that less than HALF of those surveyed said customer retention was important. I know I’ve been on my soapbox lately on the customer experience, but EVERY marketer should consider retention a priority…because once a customer leaves you, consider the cost of replacing that customer via acquisition which is 10x the cost of simply retaining that original customer.

Customers generally leave due to negative experiences (poor price, service, compatibility, etc.). What the survey tells me is that 50% of marketers are basically ok not placing the customer relationship as a priority.

Am I the only one out there who finds this problematic? It just takes one angry customer to tell 10 more, or even 100 more people about their experience. In the case of Dave Carroll and United Airlines, 5 million folks have seen “United Breaks Guitars“. So why wouldn’t customer retention be a priority?

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