Customer defections – the root cause of all your problems

In my earlier post a few days back, I had introduced the first formula of Customer Math, That is, 1=25%. This formula suggested that on an average comapnies lose 25% of its customer every year. Lets continue learning customer mathematics.

Why is Vijay Mallya such a cry baby?

With Vijay Mallya it has become a habit to keep complaining and asking for some special treatment or the other. Lets see what all benefits he has been able to get because of his political connection and proximity to Minister Praful Patel.

Mr. Mallya needs a reality check

Mr. Mallya has said in an interview, “…. there is a limit to how much we can take off our clothes?” I am sure he is implying that he cannot bear the losses that his airline is incurring. First, I don’t think we asked Vijay Mallya to buy another airline, announce purchase of planes worth billions, buy stake in a aircraft manufacturing company, a cricket team and F1 team. So I don’t think Vijay Mallya should be complaining about his clothes. On the other hand, I think he wants to keep his clothes on by taking our (customer’s) clothes off. He has entered into an illegal cartel arrangement with Jet Airways so that he can fleece the customers. He has also taken advantage of delayed payments to Oil companies and airport authority which is like taking off the clothes of the tax payers indirectly. Inspite of taking the advantage of delayed oil payments and reduced ATF prices, he is still not reducing prices and at the same time he is firing his employees slowly and steadily.

The telecom scam solution

I am happy to see that a lot of people are raising their voice against the telecom scam. BJP has demanded a CBI inquiry. A PIL has also been filed by Arvind Gupta in the Delhi High Court which has asked the government to respond to the PIL in three weeks. AITUC general secretary has written to Prime Minister Manmohan Singh for the removal of the telecom misnister Raja, DoT secretary and TRAI chairman. According to him, the licences should be cancelled as they have been issued on trial basis (I was not aware of this) and reauction the 2G spectrum. He further adds that the government can change the policy under special circumstances (corrupt practices) and even the courts have ruled positively in this respect. In the case of Unitech, the government can also reject the proposed sale because of security reasons.

Telecom scandal-Why are the industry associations keeping quite?

I have been surprised to note that till now none of the industry associations like FICCI, CII, ASSOCHAM and others have not commented on the telecom scandal. Even COAI, the telecom industry association has kept quite.

Real estate biggies and telecom scandal

It has been bothering me for quite a while that quite a few recipients of the telecom licences are real estate walas. I am not sure how many but at least the two who have sold the stakes in their telecom companies are real estate companies – Swan and Unitech. If anyone knows how many licences are real estate companies, kindly let me know. Oncce we have the numbers, then the scam will become more clear.

Lost customers the cause of all our troubles

I had posted a blog couple of days back in which I proved to you that we do not believe in the concept of “Customer is King.” Why don’t we believe? Very simple. There was no proof (till I developed customer mathematics) that customer satisfaction is profitable. I will now share with you the mathematical proof that I have developed to convince you that customer satisfaction and retention is not only the most profitable strategy but that it is the primary business strategy and all others are secondary. So if you want to learn customer mathematics, just keep yourself tuned in here.

We don’t learn from our mistakes

Government has been putting pressure on banks to reduce the interest rates through the Finance Minster (FM) Chidabaram. Public sector banks seccumbed to the pressure and agreed but private banks were reluctant. It is surprising that FM has not learnt that it was politician’s pressure that pushed the two US housing companies to give credit for home loans which were risky and landed everybody in financial trouble and global recession. We should push any bank to lend more by assuming risk that they do not want to assume. The government can create conditions like lowering of CRR etc. which will encourage the banks to reduce interest rates and start lending. I am sure competitive forces will come into play and one of the banks will see the opportunity and will reduce rates. Once this happens other will follow or lose business.

Why don’t businesses believe that “Customer is King?”

This is a very interesting question for all of us who are customers and who isn’t? Everyday businesses ill-treat their customers. Everyone of us has horror stories to tell. Inspite of being a business and hotel management student, I ill-treated a customer in 1997. Since then, I have thought about this question. Now I know the answer and would like to share it with you.

Unitech-Pray tell us what value you have created

Unitech has finally broken its silence and has stated the following on its jackpot win: