During last week’s #leadershipchat, Becky Carroll (Customers Rock!), author of “The Hidden Power of Your Customers” shared great insights on why companies should focus more efforts on extraordinary customer service for existing customers. For me, she was speaking to the converted. I’m a huge proponent of a paradigm shift to spending more money and time focused on loyal customers, and less on trying to get new ones. In fact, I believe that if you do this, you will win the war of customer service.
Myth: An advertised deep discount will get me more customers.
Fact: If your team is not fully engaged and ready to deliver exceptional customer experience, one-time trial will be all you get.
Depending on your business, deep discounts could lose the service war for you. Customers could simply take advantage of the discount, not buy anything additional, leading to lost revenue. Discounting may also cheapen the perception of your brand and in the end, kill it.
Myth: I have to get new customers in order to grow my business.
Fact: Building your business through existing customers is more effective.
Becky lists 5 ways you can do this in her book, abbreviated here:
- Renew existing business, returning for more
- Buy more from you through cross-selling or up-selling
- Customer expands (eg growing business or family) and needs to buy more
- They refer or recommend you
- Their referral results in a new sale
If you do these right, you’ll be winning the customer service war.
Myth: If I just give my existing customers good service, I’ll reap the rewards of those 5 opportunities!
Fact: Just good service doesn’t cut it.
What do you think about the customer service war?
Do you have examples of new customers reaping benefits, while existing customers make decisions whether to stay or go elsewhere? Or is there someone who’s doing an amazing job at keeping existing customers happy? Share your experience in the comments!