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Customer relations

by: Erik Sherman

from: Inc.

• Check your customer lists--Customer information can quickly go bad as people move, change email providers, and otherwise change their habits. Check the National Change of Address (NCOA) database to see if you still know where they live. Are the email addresses you have still good? When was the last time you heard from a customer?
• Run a customer satisfaction survey--If people aren't happy, they're more likely to disappear than to let you know something is wrong. So find out how you're doing and see where you might strengthen operations.
• Do some analysis--It's good to have customers, but not all of them will have the same value to you. Run an analysis to see which of them have the best lifetime customer value, who have been the heavy spenders of late, and, as importantly, which ones are expensive to maintain. Know who's being coddled and who might strengthen your business by leaving and ordering from a competitor.
• And do some segmentation--Once you can classify customers, see what, if anything, they have in common. Can you notice any patterns that might help you identify other top customers? Might there be things you could do to edge decent customers into the best performer category?