The answer to the following two questions may help you identify ways to increase sales and increase customer retention.
What is the most important ongoing expense in your business?
The answer is…It may surprise you to know one of the biggest expenses in your business is the acquisition cost (cost of getting a new customer). The actual costs vary from business to business but for a small business it can be around $400 per customer to $2000 or more for a large business.
What happens most often in your business that you don't know about?
The answer is….a customer leaves you.
During his 20+ year corporate career Ross became a specialist in implementing Customer Relationship and Customer Retention strategies and systems. He managed sales teams and distribution channels. Ross worked with large businesses in tourism, and in financial service sectors before establishing his independent consultancy practice in 2005.
9 out of 10 customer who leave you do not tell you. They just don't come back!
On average 20% of your customers will not come back in a year. Research carried out in the early 2000s showed 67% left due to “perceived indifference”. Not price, not a problem. They left just because they didn’t know if the business cared about them or not!
Often existing customers feel as if you treat new customers, who may not spend as much as them, better than they are treated. The new customer may be getting better deals, more interaction from sales and customer care teams.
Our suggestion is treat an existing customer as good as if not better than a new customer!
What do you know about the levels of customer satisfaction for your business? Have you carried out any detailed customer analysis in the last 12 months?
Understanding your customers’ needs, wants and impression of your business is critical to your ongoing success. Anecdotal feedback gives you an idea of how they may answer these questions. However, formal customer analysis is the best way to answer these questions and develop business plans that will enable you to meet customer expectations and increase customer retention.
An important consideration is there a difference in satisfaction levels between different types of customers or customer groups? Identifying the issues of a customer type or group means you can allocate resources more accurately to resolve problems and importantly not aggravate a problem with a specific group.
We have already discussed some aspects of creating customer profile through customer analysis. The next stage is understanding your strengths and weaknesses from your customers perspective.
Considerations for Customer Surveys
What are the best questions to ask my customers? How many should I ask? How do the results compare to previous surveys? How do the results compare to industry standards?
Like to Know More?
Arrange a free 20 minute chat with Ross Keating at The Client Orchardist to discuss conducting a customer survey of your clients. Use this link arrange a time convenient to you or call us now on +61 7 3102 3767.
Business Growth Strategies
“Ross’ ability to break the ‘numbers’ down gave me clarity and a much better understanding of my operation and, most importantly, an actionable path forward.”
“Ross delivered a very informative presentation to our Franchise Partners and he clearly displayed that he is an expert in this field.”