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Opinion piece

European businesses play the long game in economic downturn

SPSS survey reveals customer retention is more important than customer acquisition

Companies are prioritising customer retention in the face of the economic downturn, with 34 per cent rating it as their key current concern against just 8 per cent which are focusing on customer acquisition. This has been revealed by a survey of approximately 100 European businesses, carried out by SPSS Inc., global provider of Predictive Analytics software and solutions.

The result is a dramatic turn-around from previous years, when 40 per cent of businesses rated customer acquisition as their main concern. Due to the current economic climate, customer attrition is high. As acquiring customers is often much more costly than retaining them, businesses have been forced to address the need to hold on to and grow existing customers, rather than constantly seek new sales. Hence, 68 per cent of respondents also believe that collecting and analysing customer feedback to build better relationships will be a crucial business tool in the next two years to retain customers and increase customer satisfaction.

“The shift in the market is not surprising,” said Haydn Lewis, SPSS vice president for EMEA. “In the past few years, companies have been stuck in a cycle of customer acquisition and loss. Previously, customers were much more loyal to one brand but this has recently been replaced by a constant search for the cheapest deal. Analysing customer feedback can determine what makes someone switch suppliers, and prevent it from happening in the future.”

SPSS’ Predictive Analytics software enables businesses to capture customer data, predict behaviour and preferences, and act on the acquired insights to solve problems such as churn, direct marketing waste, risk and fraud, in order to help protect companies in times of economic downturn.
(320 words)

NOTES TO EDITORS

About SPSS Inc.

SPSS Inc. is a leading global provider of predictive analytics software and solutions. The company’s predictive analytics technology improves business processes by giving organisations forward visibility for decisions made every day. By incorporating predictive analytics into their daily operations, organisations become Predictive Enterprises -- able to direct and automate decisions to meet business goals and achieve a measurable competitive advantage. More than 250,000 public sector, academic and commercial customers rely on SPSS technology to help increase revenue, reduce costs and detect and prevent fraud. Founded in 1968, SPSS is headquartered in Chicago, Illinois. For more information, please visit www.spss.com

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