- March 20, 2017
- Posted by: Darryn Le Grange
- Category: Customer Service
We have all heard the statement that it costs 6 – 7 times more to acquire new customers than it does to keep existing customers. This is due to the marketing and sales effort, relevant resources and associated costs. It follows therefore that it makes so much more sense to look after our customers and keep them coming back and back. Depending on the nature of your industry and business, the lifetime value of your customer could be huge – and is defined as the profit you will make out of your customer for all the years to come as well as the profit from future customers whom your current customers will refer to you.
So the question follows then, do you satisfy your customers or do you delight them? Satisfying a customer is simply meeting their expectations so they leave your business saying “nice”, but a cup of tea is also nice! Delighting a customer is where they leave your business going “wow”, what an awesome experience – clearly their expectations have been exceeded.
So how do you delight your customers? Well, let’s start off by understanding the ActionCOACH ladder of loyalty
- Suspect – This is anyone who matches your target market;
- Prospect – This is somebody who takes some form of action to show their interest in your product or service and you collect their details (call your business, completes an enquiry on your website or walks into your business etc);
- Shopper – Somebody who buys once (This is the time to delight them);
- Customer – Somebody who buys a 2nd time;
- Member – A customer who feels they belong (they receive a loyalty card, welcome pack, open an account etc);
- An Advocate – Somebody who will talk positively about your business when asked, based on their experience with your business;
- A Raving Fan – Somebody who goes out of their way to promote your business ie: an unpaid salesperson.The objective would be to convert as many of your customers as possible to Raving Fan Status and this you will do by consistently exceeding their expectations and delighting them.
Delighting a customer does not happen by default but rather by design. You need to ensure you have systems in place to deliver consistently and at a level above their expectations. Here is a simple process to get you started:
- List all the customer interactions in your business;
- Define which ones are Moment of Truth (MOT) interactions. This is where it matters most to get it 100% right (and consequently where you cannot get it wrong);
- Brainstorm with your team on how to elevate each interaction to the next level;
- Implement these changes (you will find it is most often small touches that need to be added, not necessarily big changes);
- Monitor the results of these changes and the impact on your customers;
- Survey your customers and get them to rate your business, paying specific attention to the elements contained on the ladder of loyalty;
- Sit back and let your unpaid sales force bring in the leads
About ActionCOACH Kloof
Business coaches Darryn Le Grange & Deborah Coskey work with business owners on a daily basis to increase their sales, grow their profits and take their businesses to the next level. Both Darryn & Deborah are the recipients of numerous national and international coaching awards and are driven by their desire to see business owners thrive and reap the real rewards of business ownership.
Email Deborah to take advantage of a complimentary coaching session to assess the health of your business – firstname.lastname@example.org