When I talk to business owners, I always ask “how is your customer service?”
Generally they say, ‘Fine.’ Then they go on to talk about other problems with employees or revenue generation.
Then I ask, ‘How do you know?”
Usually they don’t know. They tell a few anecdotes. They talk about some repeat business which indicates the clients are satisfied, right? (or is this just the best current alternative till somebody better comes along?)
Then I ask:
How many clients stopped doing business with them?
How many customers bought once and never came back?
Did you ask anyone why they did come back or didn’t come back?
Usually they haven’t looked into it and don’t have any way of measuring the most important part of their business.
After all, the reason someone buys from you is 53% customer experience and 47% everything else (pricing, availability, reputation, referral, marketing, website, etc) That stat comes from the Sales Executive Council that studied the purchase of 20,000 different products and services. In other words everything you do in your business from setting up your company to maintaining the books, hiring, training, developing your product or service, pricing strategies, and support plans all comes to one focal point in the interaction between your salesperson and the customer. That’s the make or break point when the customer says all your preliminary work has been worthwhile or not.
It seems to me that you’d want to measure effectiveness at that critical point.
Here are some stats that might help you get your head out of the sand:
- According to statistics provided by Bain and Co. in the Harvard Management Update, 80% of companies surveyed said that they offer superior customer service, but only 8% of their customers agreed with them. Ouch! Is this delusion going on at your company?
- 96.7% of unhappy customers never let out even a squeak of dissatisfaction to the organization that has given them bad service. How do you know how many clients you’re losing to a negative experience if you don’t ask?
- According to Right Now Technologies, companies think 48% of lost customers leave because of price, when in fact only 25% do so. It is hard to believe that our customers don’t love us. We would rather believe that price is the culprit. Are you losing customers, assuming that pricing is too high, lowering prices and unnecessarily reducing your bottom line?
- According to research, unhappy customers will tell at least 15 other people, while satisfied ones will tell six at the most.
- It takes 12 positive service experiences to make up for one negative experience
according to Ruby Newell-Legner in “Understanding Customers”.
Enough unhappy clients and you’re out of business. Until then, you’re just working too hard and not having the profits to show for it. What can you do now to make sure you are generating happy clients with extraordinary experiences?
There are many things that go into creating an extraordinary client experience, including:
- developing the infrastructure of engaged employees and good leadership.
- planning the customer journey and make it consistent across your organization.
- putting measurements in place so you can keep score on the progress you’re making.
If you want to pull your head out of the sand and focus on improving your company’s customer experience, look into these three things.
- We would be pleased to talk with you. Give us a call or reply to this email.
- You can (for f.r.e.e) read the first chapter of my book The Customer Loyalty Playbook, 12 Game Strategies to Drive Improved Results in Your Organization.
- You can attend a 2-day workshop I’m teaching in Chicago on November 20-21, 2014 entitled Client Journey Management :Designing a Sustainable Business Infrastructure to Re-Engineer Consumer Loyalty.
I’d love to hear your comments and suggestions.
(Check the website of Save Delete to learn about various customer reminder techniques and use them for the best of your business)