A Forgotten Business Secret
Business today spend most of their time finding new customers and spend much on advertising just to get even a handful of them. Afterwards, if they already are a loyal customer they forget the ways how to retain them. For example, those banks that offer credit cards. Today we can see most of their advertisements and promos and are offering a very minimal interest just to balance transfer the amount to them. Then you became a customer to them because you now owe them and whatever future purchases you will make on your new credit card.
How about the existing member? most of the credit card companies don’t offer a low interest term on the balance of the existing member. But not all of them are like that, some bank I know have a paylite option so at least they have a flexible payment term, I stayed there (Credit Card A) and gave up the other(Credit Card B). I remembered when I was still their member (Credit Card B) I asked them if they can offer me a reduced flexible payment term like what they are offering for their new prospects. The answer is “no”. So when the time came I can pay all the balance on the card, I closed it up. The company can offer low interest on balance transfer for new members but can’t help their existing member to reduce their interest rate nor offered a flexible payment terms.
So the bottom line is, if credit card companies can offer promos like for example a reduce interest rate for new prospects, it might as well better to treat their existing ones the same in order to retain them. Unfortunately, too many businesses have already forgotten the old business practice of. “take care of your customers and they will take care of you.”