In today’s blog, I want to talk about customer service.
And whether or not customer service a viable marketing strategy?
Look, the answer is a resounding YES. But it staggers me how often I see business owners today, ignoring customer service.
It’s almost like it’s an “uncool” part of business these days. However, the reality is if you’re not servicing your customers and if you don’t treat them well,
Why should they give you money for your product or service?
The main reason people don’t value customer service is that there’s more competition and you have to work harder to win a customer these days.
But the REAL reason most people don’t value customer service is…
They’ve never taken the time to understand their average lifetime value of a new customer.
See, if you look at your business on one-to-one transaction value, such as when somebody walks in, they buy your product and that’s it!
It’s not until you realise that you’ve got customers who come back into your business and buy from you repeatedly.
So let’s say that on average 30% of your customers come back and they buy from you twice. Another 10% come back and buy from you three times.
Look at the overall sum of those transactions and divided it by how many initial transactions you made.
This will give you your average customer lifetime value.
And so, when you talk to your customers and interact with them, Realise they’re worth a lot more to you than you initially see on that first purchase.
I see this play out poorly all the time, and it affects customer service…
This morning, I went to a new barbershop.
I was excited to try it because it’s a barber shop across the road from a coffee shop I frequent. So I figured, I’ll check it out, and maybe I could kill two birds with one stone, pick up my coffee and get a haircut.
I walked into the barbershop, and basically, they had no interest in cutting hair this day. I was given some excuse why they couldn’t cut my hair.
Which was okay, but he did not attempt to get my phone number, my email.
They seemed so disinterested in actually wanting to cut my hair or win me as a client…
When you think about the fact, I get a haircut every three or so weeks, and the average barber haircut is about $35 haircut.
So on a yearly value, I’m worth about $600 to a barber shop. So how many lots of $600 is this business turning away?
I see this lack of understanding repeated through many other businesses.
So in your business, think about how you’re treating your customers. Think about what you can do to go over and above and win them over.
The BEST way you can do this is by putting on a smile and going to work and try to serve your audience.
What can you do to make sure whenever you have a chance to interact with one of your customers, it’s a pleasant interaction?
Because I promise, they’re worth more to you than you think.