Consider these statistics for a moment:
- The business of “acquiring” a new customer is five times costlier than “retaining” an existing one (source: Forrester).
- Just a 5% increase in the customer retention rate can increase profits by 25-95% (source: Harvard Business School).
- 55% of respondents surveyed for the Customer Experience Impact Report say they became a customer of a company because of the company’s reputation for great service.
How Would Your Customers Rate Your Level of Service?
Peter Drucker, often considered “the man who invented management,” once stated, “The purpose of business is to create a customer.”
Smart businesses create their brands with the needs of their best customers in mind. Every policy/procedure/decision is based on what is best for the customer vs. what is most convenient for the business.
So consider: Does your brand encompass the emotions and ideas associated with the product or service you offer? Start with the basics:
- How does your brand look?
- What does your brand say?
- How does your brand feel?
Find Out What Your Customers Think
When you enlist customer feedback, you can take this knowledge and use it to bring your brand to life. Customers can become your brand ambassadors. Word-of-mouth is still the most effective (and cost-effective!) marketing tool available. And when your customers become loyal customers, they share their experiences — both online and in person.
Overall, loyal customers will:
- Buy more from you.
- Pay more for your products/services.
- Refer others to you.
- Reduce your marketing costs.
- Forgive you when you make a mistake.
- Give you better feedback — and more willingly.
Nurturing your existing client base is the best and most cost-effective use of your time and money. Make sure you’re doing it right the first time. Contact FiveStar Customer Service Strategies for an initial consultation that can help you develop a smart and successful plan of action.