Demand for company’s products and services primarily come from two group’s new customers and repeat customers. The common approach for marketers is to find new customer for company’s product and service to increase sales and earn higher profits.
Focusing on new customers may divert marketers focus from existing customers to new customers. Although no one denies that new customer are important but due to changing environment demographics, economies and trends make it difficult and expensive to attract new customers.
Most of the companies have revealed that losing a customer not means losing single sale but also a lifetime value of purchases. The secret to retain customers for long term is to maintain and increase value of the products and customer satisfaction. It is important for marketers to stay in touch with customers to gain more in-depth knowledge about customer preferences, choices, needs and wants.
Amazon.com always maintains the history of each customer searches and purchases for future products suggestion based on customer interest and preferences.
