I know that I have high expectations compared to the “average consumer,” but that’s because I don’t tolerate excuses.
I know that a high level of customer experience can be achieved, every time, if the focus is put in the right places. The area, where focus is most often currently placed — profit — will take care of itself, if the customer experience is taken care of.
This is one of the reasons why I feel that I am more capable, beyond my years of experience, to run a company is because I my “big picture” focus is where companies need to be placing their effort. Effort should be placed equally in three areas of the business:
The Rule of Thirds
- 1/3 on maintaining an excellent product quality.
- 1/3 on amazing and memorable customer experiences.
- 1/3 on constant innovation (thinking of ways to improve).
If effort is placed equally on these three areas, businesses will result both in fantastic short-term success, but more importantly long-term customer loyalty and retention.
For those who feel that customer retention plays a relatively minor role in helping a company grow a healthy bottom line, here are a few statistics you might be interested in:
According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%.
And if those numbers don’t impress you, Gartner Group statistics tell us that 80% of your company’s future revenue will come from just 20% of your existing customers.
Still not sold on customer retention? One final statistic provided by Lee Resource Inc. should give you plenty to think about:
Attracting new customers will cost your company 5 times more than keeping an existing customer.