英语翻译
Economic Benefit
Research based on information contained in the Compustat and Compact Disclosure database reveals that over the long run,relationship-oriented service firms achieve higher overall returns on their investments than do transaction-oriented firms.These bottom-line benefits come from a variety of source,including increased revenues over time from the customer,reduced marketing and administrative costs,and the ability to maintain margins without reducing prices.
One of the most commonly cited economic benefits of customer retention is increased purchases over time,as illustrated in Figure7.2.The figure summarizes results of studies showing that across industries customers generally spent more each year with a particular relationship partner than they did in the preceding period.As customers get to know a firm and are satisfied with the quality of its services relative to that of its competitors,they tend to give more of their business to the firm.
Another economic benefit is lower costs.Some estimates suggest that repeat purchases by established customers require as much as 90 percent less marketing expenditure.Many start-up costs are associated with attracting new customers,including advertising and other promotion costs,the operating costs of setting up new accounts,and time costs of getting to know the customers.Sometimes these initial costs can outweigh the revenue expected from the new customers in the long short term,so it is to the firm's advantage to cultivate long-term relationships.Even ongoing relationship maintenance costs are likely to drop over time.Fore example,early in a relationship a customer is likely to have questions and encounter problems as he or she learns to use the service;an experienced customer will likely have fewer problems and questions,and the firm will incur fewer costs in serving the customer.In Chapter18 we will provide more specifics on the financial impact of customer retention.