The business case for premium service
DOES great customer experience really deliver sales? Let’s explore weekly grocery shopping as an example. (These numbers are fictitious and are designed to illustrate a point).
Based on this example, the lifetime value of the average Eurospar customer is €240,000, and they have choices on where to spend it. Imagine if you were working in that store and a customer approached you, asking you to help them spend €240,000 all in one go? You would treat them like royalty.
But why should they be treated any differently just because they’re taking 40 years to spend it? As a Eurospar shopper browses the aisles, they make several decisions about what to buy and what not to buy. But as they walk out the door they also decide if they will return or not.
Let’s use this model and apply it in a B2B world such as a beverage wholesaler of bottled beers, and minerals, whose customers are publicans and hotels. Here is what the example might look like in this industry:
Doesn’t it change how you might look at each customer from now on? Far too often customers are treated as a ‘today’ customer only, with no consideration for their future potential. If everyone on your team thought of every customer as a lifetime customer, it would change behaviours instantly.
WHAT IF CUSTOMERS HAVE A POOR EXPERIENCE?
The above scenarios illustrate the commercial value of giving great customer experience. On the other hand, what are the implications for your business if your customers have poor experiences with you? Does it really matter?
Here is an interesting challenge that should make you take this seriously. The percentages differ across industry, but this example tells a story nevertheless.
If the numbers for your business are anything like this, then you have to admit that you have a problem. These defectors were also asked why they defected. A massive 71pc of them said it was due to the quality of their interaction, ie the service level they did or didn’t get.
So in a nutshell — if you do not prioritise service and if you get it wrong, you’ll lose customers. That makes it harder for you to grow. Undoubtedly, you already have a strategy for getting new business — but what is your separate strategy for retaining your customers? There is, of course, the added emotional benefit of giving great customer experience. It’s a really nice and proud feeling when you know that customers are happy with you.