3 things successful, fast growing companies do differently

Part 2 of 3

The principles of winning customer loyalty

First of all, there are 3 elements to consider when developing a great customer experience:

  • Does the product service do what it promises?
  • How easy is it for the customer to gain access to what he wants (the product, help etc)?
  • How enjoyable is the experience?  (Think of a time when you went into a store and decided not to buy something. I bet it was due to how you felt you were treated as a person.)

Five elements positively impact your business results when a customer is truly happy with you as a supplier[1]:

  • They repurchase your service/ product
  • They usually spend more on your products/ services over time
  • They are far more likely to stay with you for many more years, which increases profit substantially
  • They ask for less support
  • They are confident enough to recommend you to their friends/ colleagues

Amazon have designed their experience to ensure customer loyalty. In the last quarter North American sales were $7.43 billion, up 36% from a year ago. International sales were $5.76 billion, up 32%.

Intuit’s growth has been increasingly impressive. They grew to $billions with only 2 sales people- because their customers were their sales force!


Customer Loyalty: The challenge you face

The problem is that, even if you intuitively know all this makes powerful good sense, customer experience is a big area and not easy to get so right that you win that holy grail. Even more challenging, often your colleagues are not convinced that they should invest in making it a major business focus. So your hands are tied.

Click here to read part 3…

[1] “The Loyalty Effect”, Fred Reicheld, Bain & Co.

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