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However, the index found that in the last 12 months other sectors have been playing catch up, with the top five churners being: telephone companies 19 per cent; mobile phone companies 17 per cent; electric utilities 17 per cent; broadband suppliers 15 per cent; and insurance companies 12 per cent.
"If the churning habit goes unchecked then suppliers could see the average lifespan of a customer lasting little more than six months, which would make a mockery of customer lifetime profit, and return on the cost of customer acquisition models," according to the index findings.
BMC Software A/NZ managing director, Mike Davies, said the study highlights the fundamental importance of efficient, effective management of IT infrastructure and business processes that underpin customer services.
While technology systems that help to quickly identify and resolve problems are important, Davies said the real measure of IT's effectiveness is from the outside in and the quality of service from the customer's point of view.
"Unless business have the systems and processes in place to fix those service problems quickly, sensitively and proactively, they'll pay the ultimate price of losing that customer."
Gartner's 2007 annual CIO survey also identified customer retention strategies as the number one priority for CIOs through to 2009.
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Read up on the latest ideas and technologies from companies that sell hardware, software and services. Achieving the impossible: Unlimited application scalability
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Zones provide focussed content from Computerworld and leading technology partners.Discover how SOA can create smarter outcomes for your business.
Attend and learn:
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Computerworld Live Podcast #97: The Future of Enterprise Networking 25/07/2008 09:45:36
This week CW Live chats with Mark Thompson, global sales and marketing manager for HP ProCurve, on the future of the enterprise networking. Mark discusses the trends we can expect to see in the near future and how the right infrastructure can ensure your enterprise network is secure. - +
Computerworld Live Podcast #96: Security at the Edge 11/06/2008 09:22:22
CW Live speaks with Amol Mitra, HP ProCurve Director of Marketing for Asia Pacific and Japan. Today's topic: how enterprises are starting to shift away from simply controlling security via server logins, firewalls and moving to more adaptive security frameworks. - +
Data Management Edition #10: Multi-Petascale Systems 02/05/2008 09:12:33
This week we look at sustainability and the development of multicore technologies to build multi-petascale systems. - +
IT Security Edition #11: How to poison the Storm botnet 01/05/2008 08:51:55
This week CW Live presents a case study on how to poison the notorious Storm botnet . Plus we take a look at Cisco's plans for Ironport. - +
IT Security Edition #10: Cyber-battles fought and won 24/04/2008 11:09:47
Vendors bow to end user pressure to improve product security, and we take a look at the latest concepts shaping the cyber-battlefield of the future.
AOC Launches 18.5” Widescreen Green 16:9 LCD Monitor in Australia and New Zealand 2008-12-03 15:30:00+11
FrontRange Solutions eases software license management with new License Manager 3.0 2008-12-03 14:56:00+11
Progress Software's Cure for Managing Services-based Applications 2008-12-03 14:42:00+11
S3 Graphics Unleashes Full OpenGL® 3.0 API Support with Beta Driver for Chrome 500 Series GPUs 2008-12-03 14:08:00+11
Informatica Powercenter added to Nec Infoframe Solution Suite 2008-12-03 11:36:00+11
The state of Middleware
Middleware delivers unprecedented visibility and control over your business by making timely information available to decision makers. Organisations are using Middleware to leverage their existing IT investments, while optimizing their IT and business operations, securing their infrastructure and driving compliance. Read on to discover how Middleware can help you increase your businesses profitability.













Comments
Reward Long-Term Customers
Surprise, surprise. People have learnt that most business only offer incentives to attract NEW customers, not retain them. So those who are prepared to switch regularly get a constant stream of great benefits.
Long-term customers are taken for granted by most businesses. No sweet deals and incentives to stick around are offered to them. Thus they end up paying more for their services than those who do switch often. Indeed they subsidise those prepared to switch regularly.
This situation has come about because of the focus on short-term growth rather than long-term sustainabile practices.