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Industry News Customer values may not come in measurable quantities 2010-03-04 Customer retention analysis may not always show that low costs are what keep customers coming back. Innovation consultant Matthew May recently wrote at the American Express OPEN Forum about intangible value - those things that attract new and old customers that have more to do with perception than profit. In reference to the behavioral model of Ernest Dichter, May suggests that most customer attitudes toward products or services revolve around axes of risk and security. Dichter claimed that consumers evaluate risk on the basis of economic, functional, social, physical and mental factors. These perceptions are not always rational, May points out - emotions play a large part. "Sometimes we're so focused on the tangible exchange - the deliverable, the economic transaction, the business - that we neglect what the customer really value," May says, adding that "what the customer really values most is often of an intangible nature: trust, security, peace of mind." For organizations figuring out how to prevent customer attrition, analysis may show intangible value playing a significant part. A recent survey from marketing agency Targetbase found that though 78 percent of companies believe they effectively engage with customers, only 77 percent of customers feel fully engaged, suggesting that their priorities may not be reducible to sales figures. 
Two More Words on Client Retention
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