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Have you ever had a really poor experience at a restaurant, store or business that made you stop going there? Probably all of us have. Furthermore, there are probably places you used to frequent often, where you've cut back. I know for me personnally, after many years shopping at the local grocery store, I started food shopping at a store much further away. I still may shop at my local grocery store for odds and ends, but the bulk of my food shopping is done elsewhere. How many businesses would provide better client service and train, hire more customer-oriented employees, or emphasize the importance of a better client experience, if the true worth of each client was calculated?
For I find it is often the case that many businesses never calculate the true value of their clients when making business decisions. Here is a way to do it:
- Start with the lost revenue stream: include not only the cost of the average transaction, but the net-present value of future transactions. The meals purchased, clothes purchased, sales lost over time should be included in here. Even discounted for net-present value, this number can add up to serious money.
- Add in the revenue stream of referrals: loyal clients tend to make referrals. Referrals are a cheap source of income, since it costs nothing to acquire them, and current clients help advocate your services for you, so they are more likely to trust you and purchase more quickly. If you lose the customer, you've also lost the revenue of referrals.
- Add marketing costs: loyal clients who help build the business mean cheap referrals and reduced marketing costs. If you lose loyal clients, you will need to market more, incurring increased costs. There are often a lot of upfront costs with new clients as well. Be sure to add that in.
According to a November 2009 study on The Cost of Poor Service, Genesys calculates the one year cost of poor customer service in 16 key economies at $338.5 billion! Take the time to calculate what your clients are worth to you. It may be an exercise that results in different decisions being made and a better client experience overall.
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Have you ever had a really poor experience at a restaurant, store or business that made you stop going there? Probably all of us have. Furthermore, there are probably places you used to frequent often, where you've cut back. I know for me personnally, after many years shopping at the local grocery store, I started food shopping at a store much further away. I still may shop at my local grocery store for odds and ends, but the bulk of my food shopping is done elsewhere. How many businesses would provide better client service and train, hire more customer-oriented employees, or emphasize the importance of a better client experience, if the true worth of each client was calculated?
For I find it is often the case that many businesses never calculate the true value of their clients when making business decisions. Here is a way to do it:
- Start with the lost revenue stream: include not only the cost of the average transaction, but the net-present value of future transactions. The meals purchased, clothes purchased, sales lost over time should be included in here. Even discounted for net-present value, this number can add up to serious money.
- Add in the revenue stream of referrals: loyal clients tend to make referrals. Referrals are a cheap source of income, since it costs nothing to acquire them, and current clients help advocate your services for you, so they are more likely to trust you and purchase more quickly. If you lose the customer, you've also lost the revenue of referrals.
- Add marketing costs: loyal clients who help build the business mean cheap referrals and reduced marketing costs. If you lose loyal clients, you will need to market more, incurring increased costs. There are often a lot of upfront costs with new clients as well. Be sure to add that in.
According to a November 2009 study on The Cost of Poor Service, Genesys calculates the one year cost of poor customer service in 16 key economies at $338.5 billion! Take the time to calculate what your clients are worth to you. It may be an exercise that results in different decisions being made and a better client experience overall.
Use Customer Service to Win Loyal Clients
Differentiate By Making Client Satisfaction Pervasive Throughout Your Organization
Presented By Susan Hoekstra
When service is blasé, price becomes the decision driver for customers. If you aren't committed to delivering a high-level service experience, be prepared for a never-ending price war that slashes your margins. Today's marketplace demands that companies deliver consistent, stellar service to retain their existing clients and attract new ones. The service your customers experience will differentiate you from your competitors. The question is... will it make them more loyal or send them running to the competition?
Susan Hoekstra, customer service strategist and author of the widely acclaimed book "The Service Journey," helps business leaders differentiate their company through the customer service experience. She teaches you the critical steps to developing a corporate culture founded on delivering a service experience that drives client retention and new sales. Put your competitors on notice as you are going to grab market-share by delighting your clientele.
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• Create a vision and commitment to deliver high-level service
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• Hire employees that share your service values
• Solicit input from your clients on your service performance ... so you can deliver the experience they expect
• Establish service performance measurements that matter ... and use them to make changes the will boost revenue and profits
As an added bonus, the first 20 registrants will receive an autographed copy of Susan's widely acclaimed book, "The Service Journey."
Wednesday, Feb 17, 2010
1:00pm - 2:00pm
Eastern Time
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