Wednesday, July 30, 2014
Recent experiences got me thinking about marketing resources and the exponential power of customer satisfaction.
I want to share some thoughts about its importance and how it contributes to your business success. I’ll also tell you a story from my own experience. For that, you'll have to watch the video.
I want to start with a question. Why do you pay attention to customer satisfaction? Or do you pay attention to customer satisfaction at all? Here are two typical reasons why people think about customer satisfaction.
I believe there is a more serious economic and business growth reason to pay attention to customer satisfaction.
- To satisfy their own sense of goodwill, knowing you are doing the right thing.
- To keep dissatisfied people from getting in their face.
Some things in life and business are important but not easy. Taxes is one of those things. It’s important and I know I have to deal with them. Fortunately I can outsource to an expert.
Customer satisfaction is also important but not easy. And you know that's not something you can outsource. Unfortunately it's often fuzzy, hard to measure and hard to fix.
In life and business we tend to make decisions about what we're going to pay attention to, partly based on a pain vs profit continuum. We easily prioritize the things that are easier to deal with and have a clear benefit. If something is hard to deal with and the benefit is unclear, it's likely to be low on the priority list.
Because customer satisfaction is fuzzy it often gets ignored until someone complains. That's not what you want to happen. Dissatisfied customers don't always complain.
I'd like to put the subject of customer satisfaction in a different light so it can be treated on a more proactive than reactive basis.
The Football Analogy
I’m more of a motorsports guy but I’m going to talk about football for a minute.
Making a sale, especially in higher ticket items, is exciting. It's like making a touchdown. You've planned your plays, executed well and crossed the goal line. It's time to celebrate! That's exactly what you're looking for.
What could be better than getting a touchdown? What about winning the game? A touchdown isn’t worth much if you don’t win. But when you strategize and maximize the power of your offense and defense and get more touchdowns than your competitor, you win and that rocks!
What could be better than winning the game? How about winning the CHAMPIONSHIP? Football players dream about having a winning season, playing in the Super Bowl and getting that game winning ring.
How does this relate to customer satisfaction, and what does it have to do with marketing resources?
Getting The Exponential Benefit
There are three things you want people to do:
- Buy from you
- Buy repeatedly
- Refer others to you who will buy repeatedly
When people make that first purchase from you it's like getting a touchdown. When people buy repeatedly it's like winning the game. When they refer others who buy repeatedly, that's like winning the championship.
What does all this have to do with marketing resources? You put time, effort and money into making that sale. If you only make one sale and the customer doesn't return, those marketing resources aren't terribly effective. If they do return several times, you get a much better return on your marketing resources. If, however, you satisfy customers to the degree that they refer others who repeatedly buy from you, that's when your marketing resources get an exponential return.
To hear my story on customer DISsatisfaction, watch the video.
Steve Smart works with busy entrepreneurs who want to improve their marketing efforts. He lives in St. Louis and can be reached at srsmart@2Qsolutions.net or 636-699-8772.
Posted by Steve Smart