Uncommonly Good Customer Service Knows the First & Primary Measure for Business Success
Posted by admin at 18:37 | Filed In Customer Service Tools
Uncommonly good customer service is when the business knows the first measurement for business success. Unfortunately, this is why most good customer service is truly not good, but poor to barely adequate.
So what is the first measurement for business success? Before I share that criterion with you, you probably need to be able to answer this question: What is the purpose of business? Unless you know the purpose, what you are measuring might be the wrong things and this may be way your customers are not receiving exceptional experiences within your business.
When you boil down the purpose of business, it is all about loyal customers. How you treat your customers by strengthening each and every relationship will determine your overall business success.
Now you know the first measurement for business - relationships. Many companies believe the first measurement is profits and this is absolutely backwards thinking. Profits come from relationships and until you measure your relationships, you are losing incredible opportunities to increase sales.
The next question is how do you measure relationships. Now that is an excellent question and demands a multiple approach for relationships come from a numerous sources such as:
- Existing clients
- Past or inactive clients
- Vendors
- Friends
- Family
- Mentors
- Strategic partnerships
- Professional colleagues
Each of these sources has to be identified and then determine the value of this relationship. Constructing the value is from several numbers:
- Average sale
- Average sale specific to each customer
- Average referrals per customer
- Average sales from referrals per customer
- Average tenure of clients
By beginning to understand these numbers, allows the business to measure the value of relationships. For example, I recently had connected with a coffee shop that has meeting rooms. I delivered a 4 hour morning work shop on Triage Business Planning using the one page business action plan. This created approximately $80.00 in revenue from the 12 people who attended.
Then I let one of my clients know about this facility and they had a breakfast meeting there for 15 people that generated over $125 in revenue. Also, I have referred at least 10 people to this coffee shop during the least 2 months. From my quick calculations, this facility has received over $500 in new business.
If each regular client makes one stop a week and spends $5.00 on coffee and food, then that customer is worth $260 on an annual basis. However, if a customer makes referrals that bring in $500 in just 2 months and continues to visit the coffee shop 2 times each month and spends $10.00 each time, then that client has a much higher relationship number. By ignoring that bi-monthly customer in favor of that weekly customer is not smart business.
Knowing that relationships are the first and primary measurement for business success will help any business focus on truly creating loyal customers instead of racing to find that next newest customer.
Do you know how to begin to measure relationships? Take this free customer loyalty audit.
Are you seeking a motivational speaker for your next conference or sales meeting? Give Leanne a call at 219.759.5601.
Leanne Hoagland-Smith, chief customer officer, helps organizations through business training coaching services to return to the purpose of business that being building ravings fans while increasing productivity and profitability. With offices in Chicago, Indianapolis and colleagues nationwide, she can help you become the Red Jacket in the Sea of Gray Suits. Call 219.759.5601 to schedule a free business coaching consultation.
Customer Service Coaching Tip - You Must Measure Relationships
A great customer experience usually means exceptional customer service. This results in the second of the two measurements f...
Leading Quality Customer Service Departments
These days, customer service departments do more than answer customer questions, take orders, and supply additional informati...
Three Legged stool
If one or more of the legs on the stool are missing or broken, your advertising, marketing and training investment can be a w...
Customer Service Coaching Tip - We Need More Customers Is Simply The Wrong Focus
The need to find more customers is very real. Business change, people change and new buyers of your products and services nee...
How to Choose Right CRM as Per Your Business Requirements
Spell Success with right CRM for your BusinessCRM is not just a technology and can help your small business grow. Once youve ...
Customer Service Coaching Tip - Love the Customers You Are With Before Seeking New Ones
Do you love your current customers? Or, are you always seeking, scouring the earth to find news ones? If this is the case, ...
Reaching Goals Through Helpdesk KPI
Helpdesk KPI or key performance indicators assist call centers in formulating and evaluating how far the organization is in t...
A Few Things to Look at When Choosing a Business Internet Service Provider
The Internet has swept across the entire globe and has become part of most everyones daily lives. The Internet is considered...
Good Customer Service Coaching Tip - Know Your Points of Potential
Every business has incredible potential within the customer service experience. The actions that you take identify them and ...
Role of CRM in Customer Interaction and Service
Every business works for its customers and to ensure success and growth, we need to focus on the needs of the customers. CRM ...
Customer Service and the Global Survey
Go into any mall in any location around the world and conduct a survey. Here are a few questions you can ask.1) On a scale of...
Learning Customer Service
My entire career has revolved around customer service in one way or another. In the beginning stages I was a receptionist an...
Extraordinary Customer Service - Where Does It Begin?
Over seventy years ago, a young journalist by the name of Peter Drucker recognized the power customers and the necessity for ...
Appointment Setting a Key To Business Leads
Appointment setting has a definite role to play in generating business leads. The process of appointment setting is really po...
How to Create One View of Your Customer - A Checklist
Customer Resource Management (CRM) is a broad phrase that encompasses the management of an organizations customer base and in...
Small Business CRM - In Detail
Small business CRM (Customer Relationship Management) is a process that enables a company to integrate all customer related i...
Customer Service Training Benefits For Your Company
Customer Service is an important aspect for all businesses as they help retaining customers and build their businesses. Many...
Skills that Win in Customer Appeal
Daily we are recipients or presenters of customer service skills. It does not matter whether you are at work or play; we all...
Where Has The Service Gone?
Remember the days when the companies with whom you gave your hard earned money to appreciated your business? Today, it is rar...
The Irate Customer And You
The next time you have an angry customer ask yourself why this customer is upset. Try to place yourself in this customers sho...