The one about customer service is it a marketing tool or the Black hole of lost revenue? #35

Does the quality of your customer service add to your bottom

line or create a black hole of lost revenue?

Is your customer service good because you work at it?

Or is it bad because you don’t’ work at it.?

No one ever talks about mediocre customer service.

More times than not you hear a complaint that’s the way it goes.

So think about this every time you hear a complaint about bad

customer some business owner   just lost a customer.

Customers cost money to acquire. You just lost a customer

now you think I’ve got to go get another one. Spending more

 money on marketing to acquire a new customer to replace

 the one you just lost.

And you’re probably thinking I’d belter ramp up the sales

 and marketing to get a bunch of new ones just in case we lose more.

Granted no one keeps every customer there is always a natural

attrition of customer loss. But losing customers because of bad

customer service is a conscious decision of the owner.  

Every company has a program to ramp up sales but most

don’t have a training for good customer service .

Some might say I was never taught how to give good customer

service what do I do? For starters    

You know what bad customer service is reverse engineer it.

Turn the negative to a positive experience.

If everyone is trained on how the customer should experience

 good customer service then it becomes a company goal to be better.

Let’s look at it for 2 points of view the positive and the negative let’s do the negative first so we can finish up on a positive note.

Bad customer service outcome run the numbers for your own situation

You lose the customer

You have lost minimum of 2 referrals   lost revenue

You lost the life time value of the original customer lost revenue

You have to market for your new customer  

If your closing ratio is 25% then you have to go and see 4 prospects time and gas

To get one customer, and if your track record for bad customer service is in play,

 double or triple this number.

The person who has a bad experience tells 13 people, fact.

While the person who has a good experience only tells 4

Now let’s take using good customer service as an awesome back end marketing tool.

You have a ecstatic customer who was treated well with the program that you put together on how to give great customer service that you have taught your team..

They are ecstatic about your company and how they were and are treated they become an advocate for your company. They sell.

How many will they refer through their life time lets say 4 in the next 2 years.

And 2 of those refer 2 in the next 2 years so that gives you 8 new customers in the next 2 years from  one ecstatic customer.  What if you had 20 customer that did that on a regular basis.

It’s possible only of you set up your business thihis way.

Some great material to read for great customer service is

WAYMISH Why are you making it so hard for me to give you my money?

Customer Satisfaction is Worthless Customer Loyalty is Priceless: How to make customers love you, keep them coming… Jeffoy Gittomer

Inside the Magic Kingdom: Seven Keys to Disney’s Success by Tom Connellan

Out-Nordstrom Nordstrom Creating the World’s Best Customer Service by Keith Lee

                       

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