As companies battle to thrive and survive amid constant industry change, deregulation, and a general economic downturn, management must shift its focus from rapid revenue and market share growth to maintaining and enhancing margins. Margin enhancement consists of effective revenue enhancement and cost management, leading ultimately to increased profitability and margins.
A persistent challenge on both the cost and revenue sides is customer churn, the movement of customers from provider to provider in search of better and cheaper products and services. Churn rates have escalated with increased competition and deregulation. For providers, increased customer churn has resulted in rising customer acquisition costs and lower average monthly billings. It also has translated into a renewed interest in customer satisfaction and retention, since it costs much more for a company to acquire a new customer than to retain an existing one.
While the fundamentals of pricing, choice, customer service, service quality, and marketing play an ongoing role in keeping customers happy, we at Daythree proactively identify high-value customers who are thinking of jumping ship and find a way to keep them on board. We can identify customers that generate unreasonably low margins and develop strategies to increase margins or divest of such customers. This winning combination of technical expertise and business savvy results has greatly benefit many of our clients.
