RETURN ON CUSTOMER EXPERIENCE
We have introduced the importance of creating “WOW” customer experiences in several blogs. An example of such experiences may include a more rapid delivery of a product/service or the performance of an additional, unexpected service at no additional cost. Like any other innovation, these “WOW” factors have to be monitored to gage their effectiveness.
Experiences also have to be improved upon or added to in order to keep the customer experience “something to talk about”.
For example, if you give a customer a free pen every time they have a transaction with you, that gift will lose its WOW factor after it has been repeated several times.
A current “WOW” factor serves two purposes: first, it will keep your customer coming back and second, it will increase referrals from that customer. We assume that they will return and that referrals will come, but without an effective method for measuring the actual results, it is only a guess.
Studies have shown that businesses that make customer experience a priority can charge a premium of up to 16% for their products and service. Another ongoing benefit is an increase in the amount of referrals received.
The customer experience is a marketing process and may, in many cases, involve an investment. As we have discussed in past blogs, knowing the acquisition cost of a new customer will help budget your retention investment amount. In almost every case, we have found that it is considerably less than the new customer acquisition cost.
Tracking the results of your “WOW” marketing efforts is as simple as asking new customers “How did you hear about us?” Also it keeps track of the return frequency of existing customers.
This is just another tool in the marketing arsenal that a small business must use. Like all other tools it has to be continuously reviewed and changed to keep up with customer expectations.
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Tips & Advice by Nick Petra, CFP – Founder of Strategic Duck and BizQuack
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