Have you ever thought of the real cost to business of just one lost customer? Or conversely the value that well trained staff can add to your profit?
- Cost of lost customers.
Having a good experience doing business with you brings people back. Think of the long term value of this. Colmar Brunton New Zealand Research shows that if the customer experience is bad, 80% will tell 13 other people. But let’s look at the converse.
Let’s use the example of a café in a business district. A regular customer might spend $60 a month on take away coffees. If something chases them away – like a snippy employee, or the wait just gets too long too many times because of understaffing, the lost income is at least $720 a year ($60 for 12 months). That is $2,160 over 3 years. Just from one customer.
Now what if that customer tells his colleagues “Don’t go to that café’ “. Multiply business lost by people told. Bad service or processes that chase people away has an actual, quantifiable cost.
- Value of good staff
Referrals are the lifeblood of many businesses. Going back to the café example what if they had a great counter person? A fun environment, or gave a free coffee e every now and then to someone as a thanks for being a regular. If that one takeout coffee customer instead of leaving spread the good word, each referral would have an annual value of $720.As you can see, having happy positive staff, creating a welcoming environment and a good customer experience pays double dividends.