Customer Management
“Do what you do so well that they will want to see it again and bring their friends too.” – Walt Disney
Repeat customers are the result of great business operations – you have a great product or service, thrilling the customer and surpassing their expectations. Repeat loyal customers are the life blood of a business – bringing recurring business with many opportunities to growth organically. Organic sale growth comes in the form of cross-selling, up-selling and introduction to their friends, family and business contacts.
These repeat sales help you to grow and scale your business. To build a strong repeating customer base you need your business operations to be robust, consistent and reliable to thrill the customer. Here’s some numbers for you:
- If a customer has an amazing first experience, you have a 38% chance a customer will return a second time.
- If a customer has an amazing second experience, you have a 45% chance a customer will return a third time.
- If a customer has an amazing third experience, you have a 70% chance the customer will return a fourth.
- Each subsequent visit has a chance greater than 80% and would now be considered a strong repeating customer.
If a customer has an amazing experience every time, only approximately 10% of new customers will convert to repeat customers. This might not sound like a lot but it can represent an great source of business. In most e-commerce businesses, it was found in an industry benchmark study, around 25-30% of revenue came from repeat customers – in smaller businesses, it can be as high as 50% of revenue. The way to thrill the customer is when you are focusing on your customer’s experience – your business’ fundamental reason for being.
For example if you are a boutique craft shop, your focus is the quality, consistency and the bespoke client touches that make your crafts unique. Time and effort spent on administrative tasks can slow down your business success. The most common complaint of administrative tasks involve tax, accounting and bookkeeping.
There are many systems you can use which cut down on these administrative tasks such as GST returns, payday payroll and bookkeeping. Most businesses spend 5% of their resources on administration – for the typical self-employed person this is about 2 hours a week. Using the right administration systems, you can reduce this to 2 hour a month. Extrapolated, you can recover about 1 full working week of time.
Getting the right system and processes can save you and your business time, money and resources. Contact us today!