Manufacturing firms urged to covet customers

Over half of European manufacturers are missing out on sales because they are ignoring the high customer loyalty levels the Internet can bring, according to a survey published today.

The Deloitte Consulting report claims the traditional formula of low price, high quality and on-time delivery is no longer enough to retain customers in the face of increasing customer sophistication and new channels to market.

According to Deloitte one of the most important new channel choices is the Internet, but only 20 per cent of companies surveyed currently have ecommerce capabilities.

In a statement, Pete Mooney, European manufacturing practice director at Deloitte, said: "This is a strong message for European manufacturers. In a market where European online revenues are expected to grow from $6bn in 1999 to $68bn in 2001, failure to respond to this loyalty challenge will place their business at an even greater risk."

The report advises firms to become more 'customer-centric' and set clear targets for customer retention.