QUESTION – how do I maximise repeat business and referral rates?
THOUGHT – show that you care
I have written a lot about the importance to consumers of feeling significant. No matter how ‘un-important’ an individual might seem, and no matter how little they are spending, everyone wants to feel that they have significance in the world. Along with certainty, variety, connection, growth and making a contribution, significance is one of 6 key drivers of 21st-century consumer behaviour.
Further, when a consumer feels they are significant, they are far more likely to repeat an action. If a business makes them feel important, or at least significant, consumers are far more likely to buy again or refer. They are far more likely to have a higher lifetime value.
Part of making a customer feel significant is demonstrating that you care.
This is highlighted in recent research reporting that 68% of customers have changed supplier or vendor due to a perception that the supplier of vendor did not care enough.
Caring is important, but it is not enough.
The truth is, many of the businesses that were dumped by those surveyed may well have cared a great deal, but the customer was still left with the impression that they did not care enough.
To maximise the lifetime value of a customer, it is important to care and demonstrate you care.
Demonstrating to customers that you care might involve:
- Being present – in the moment with the customer (not daydreaming or thinking of home)
- Asking the right questions and listening carefully to the customer
- Personalising the pitch and customising your conversation accordingly
- Being respectful, introducing yourself, using names and being generally polite
- Reflecting a positive and engaged attitude to the transaction no matter how small
- Remembering repeat customers, their idiosyncrasies, tastes and preferences
- Following up customers after the purchase and asking them how they feel
- Demonstrating with a smile, that nothing is too hard.
The list goes on. There is a great deal you can you to demonstrate that you care – and it is vital that you do it with sincerity and authenticity. A documented process for showing caring, as part of your overall lifetime value strategy, is essential.
Above all else – CARE. If you genuinely care about every customer, your repeat business and referral rates will rise.
Research also suggests that a small purchase today can lead to a more significant purchase down the track.
Develop and implement processes that ensure that you and your staff demonstrate to every customer that you care.
Genuinely CARE. Recognise the significance of every customer as a human being and as a source of repeat business and referral.
Super Office, Shaun Buck, Saasquatch, Hubspot, ShareSomeFriends, Journal of Marketing, Nielsen, Texas Technical University, INC and Customer Experience Insight
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