How the customer is treated from the time she walks through your doors until she leaves add up to the total customer experience that she will remember.
What does it cost you to gain a new customer?
Contemporary management theory tells us that:
"A 5% increase in customer retention can increase profits by 25% to 95%.”
Harvard Business review 2001
For a business person like you, this means that after spending so much money on getting the customer to come to your store, outlet, restaurant or wherever, your primary goal needs to be to keep her coming back for more. The above demonstrates that what is most important for us is the lifetime value of the customer rather than the one time revenue.
My friends in the soft drinks industry tell me that during the time Coke (or any soft drink brand) was distributed in bottles, the bottle had to be re-cycled seven times before the company recovered the cost of the glass bottle. This means that the company made money only on the eighth purchase of the soft drink. This meant that customer retention had to be the primary focus of the soft drinks company.
In your case, have you calculated just how much it costs you to gain a new customer? Are you able to recoup your sales and marketing expenses per customer on just a single transaction? For most companies, the answer would be a most definite No. They need the customer to keep coming back to cover just the marketing expense.
What is the Lifetime Value of the Customer
Let us say that you can make Php 1,000 from your customer. If she buys from you only once, then her value to you is Php 1,000. However, if you are able to keep her coming back once a month for the next 5 years, then what is her value to you now? It would be Php 1,000 x 12 times a year x 5 years, giving you a total of Php 60,000. Wow! This means that if we make her happy enough to keep coming back to our store, we can expect to sell her more than Php 60,000. Is she a VIP customer or what?
Does your staff treat your customers like VIPs?
Everyone your customer meets and everything she sees, hears, or touches impacts her buying experience. Your people, from the security guard who ushers her into your store, to your sales people, to your cahier at the end, they all add to the total experience. A misstep by any one of your people could result in your losing the lifetime value of the customer you have worked so hard to win. Avoiding this scenario requires that your organization become truly focused on delivering superior customer service.
Get your Staff Trained
Creating focus on customer satisfaction starts with proper training. Your staff need to understand the fundamentals and develop the correct strategies that will keep the customers coming back. The “Superior Service Strategies” of RMP Consultancy can help you achieve this goal.
Click here to see the seminar details.
This seminar is suitable for Managers, Supervisors, Team Leaders and everyone in a Customer Focused Organization
This is a highly interactive seminar with short presentations and games and exercises to demonstrate the principles being discussed. The participants are expected to take part in the games and exercises.
Contact us!
Email seminars@rmpconsultancy.com
Telephone:(632) 697 0767 Tel (632) 579-0233
Mobile (Globe) 0917-882-5578
Mobile (Smart) 0920-918-7358
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Pre-registration is required. Please email seminars@rmpconsultancy.com or call Chili Tel (632) 697 0767 Tel (632) 579-0233 Mobile (Globe) 0917-882-5578 Mobile (Smart) 0920-918-7358 for more information. A registration form can be downloaded from our website at http://rmpconsultancy.com/en/downloads/. Kindly email the registration form to seminars@rmpconsultancy.com.
Other Seminars in the Essential Business Skills Series
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