Seeking to differentiate themselves with superior customer service, small businesses turn to Plaxo

People-Intensive fields such as real estate, sales and Religion turn to easy-to-use technologies for success

November 1, 2005 (MOUNTAIN VIEW, Calif.) — Whether they are in sales, real estate, a small business, or even the clergy, entrepreneurs in people-intensive fields face a common set of challenges. The majority of their business tends to be repeat business and referrals from existing customers, putting a premium on creating and maintaining customer loyalty. Being able to reach customers proactively to inform them of new services, thank them for past patronage, respond to inquiries and problems, or otherwise maintain personal relationships is often the difference between success or failure.

According to the Small Business Association, small businesses represent more than 99 percent of all firms. Unfortunately, nearly 50 percent of small businesses fail in the first year, and that number jumps to 80 percent within the first five years. A key factor in success or failure of a company is the ability to build customer loyalty. According to a study by Frederick Reichheld, author of The Loyalty Effect, a 5 percent difference in customer retention rates can translate to a 75 percent difference in lifetime customer value.

In order to differentiate themselves and make pre-existing relationships stronger, many small businesses are turning to technology for efficiency as well as to create a personal touch with customers.

Honey Brooks, a realtor with San Francisco-based Coldwell Banker, competes for clients in one of the country’s hottest real estate markets. Brooks relies on technology to make her a more effective realtor; her Global Positioning System (GPS) ensures Brooks takes her clients on the quickest route between homes, and Plaxo makes sure she is always connected to her clients.

“Happy and satisfied clients will use me again when it’s time for their next move,” said Brooks. “My database now works for me — Plaxo automatically refreshes my contact information whenever there’s a change and keeps all of my data in one place. Having up-to-date, accurate contact information that I can access quickly and from anywhere is essential — it gives me a competitive edge, and helps me provide the superior customer service that my reputation is built upon.”

Ideally suited for small businesses with little or no budget for information technology, Plaxo is a free online service that keeps people connected to their personal information. Plaxo not only automatically updates contact information, but it also synchronizes users’ calendar, tasks and notes to ensure that people have access to the most current information anywhere, and at all times.

Technology is also proving to be a boon to another people-intensive fieldâ”the clergy. Gary Lamb, church planter and lead pastor of Ridge Stone Church in Canton, Georgia, saw nearly 300 attendees worship at Ridge Stone’s inaugural service. Since then, the number has ballooned to more than 500 parishioners at weekly services, and a mailing list of roughly 3,000 people. Feeling it was important to know each member of the parish personally, Lamb adopted Plaxo as the church’s contact management database.

“Plaxo keeps me on top of our membership and all the recent changes that have occurred,” said Lamb. “I like to meet and greet every new member, and enjoy giving them personal attention so that they feel comfortable in their decision to join our church. Before Plaxo, I wasn’t able to give members this level of personal attention, frankly because I spent more time at my desk and because our information just wasn’t accurate.”

Kelly Robinson, owner of San Francisco, CA-based Pilates studio, Infusion Pilates, depends largely on maintaining relationships with a core group of customers. With a young clientele base that tends to move often, Robinson was forced to spend much of her time updating contact lists to ensure that classes were full and her business could run smoothly.

“Plaxo is a great tool for small business owners, because it”s easy to use, low maintenance and budget-friendly,” said Robinson. “Outdated client contact information could mean missed appointments, unscheduled hours, and potentially losing track of my clients. Plaxo makes sure that doesn’t happen. An additional benefit is the birthday reminders which ensure I send clients e-cards or gift certificates to the studio. It’s another way to sustain great client relations.”

About Plaxo

Plaxo, Inc. (www.plaxo.com) is an innovative consumer technology company that provides a critical new layer to the Internet infrastructure: consumer services that accurately and seamlessly keep people’s data up-to-date and accessible. Plaxo is a privately held company funded by leading investment and technology firms — Sequoia Capital, Globespan Capital Partners, Harbinger Venture Management and Cisco Systems — as well as individual investors Ram Shriram and Tim Koogle. The company has raised almost $20 million since it was founded in 2001.

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