A lot of companies today are recognizing the importance of customer loyalty. Some studies suggest that a 2% increase in customer retention will have the same impact as a 10% operating cost reduction. The factors that go into this can be numerous depending on which study you are looking at. I think that it really comes down to the basic foundations of business… develop a great product or service, know your market, get your key players in place, but most importantly……. TREAT YOUR CUSTOMERS WELL!
Customer satisfaction is what is distinguishing the successful companies. Smart companies are making their customers a true partner in their business. They ask the customer what they want, they listen to what their customers are saying, and they are actually considering those ideas for implementation.
On a level playing field, customer satisfaction and customer service will set your company apart from your competition.
“Blow them away with legendary, remarkable service,” enthuses Robert Craven, managing director of business consultancy The Directors’ Centre. He believes that going the extra mile is the key to keep them coming back for more.
“We are in a world of mediocrity where we are competing with similar products, similar companies, similar people and similar prices,” he explains. “In that world of bland, beige, mediocrity, you have to step up to the mark, be distinctive, smarter, faster, brighter, harder, cleverer and get closer to the customer. If you are the same as the competition, why should people bother to buy from you?”
People choose the people and companies they associate with based on how they feel when they are around them. This directly demonstrates the cause and effect between customer service and customer loyalty. When you treat your customers well, they will feel valued, when they feel valued, you have developed customer loyalty. When you have customer loyalty, those customers will increase their referrals to your business and you will see increased profits.