Business case

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There is a gifts’ Internet store I have been working with for more than five years. Over the course of these years, I spent something like $10k with them. This Eve I ordered $300 worth goods. They never called me back until I had to call them in 3 days. They did not manage to bring the stuff (next day delivery) in a week. When they finally did, the order was incomplete. It missed about 25% of positions. I was late to send presents to my loved ones. They lost me as a client most certainly. Let us analyze the business case now. Several topics are worth discussing.

1. Customer lifetime value. We can predict the future by looking at the past. I could bring them some $20k more eventually. It won’t happen.
2. Lost marketing opportunity. I did spread the word around every so often. I think I brought them quite a few customers. No more.
3. Attitude. I wrote about it previously. I do not believe that owners of the shop would approve such type of customer mistreatment. Therefore, I guess processes are broken.
4. Customer validation. I can imagine Christmas and New Year Eve is very busy time. I could understand if they would not be able to serve new customers but not losing existing active accounts. Lack of processes.
5. Bad PR. Although there is no such a thing as bad PR still, some potential customers of theirs reading this article now, may never become their clients or may switch to the different providers.

Oh, It is KOMOD.COM.UA store.

Artem Berman

Artem Berman

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