Gaining new customers has always been and will always be the objective of any organization. However, maintaining the satisfaction and loyalty of existing customers is an aspect of utmost importance. Numerous studies claim that the cost of getting new customers is 5 times more expensive than maintaining those who are already loyal. Based on this assumption, it is reasonable to focus efforts on existing customer loyalty.
According to a 2012 survey by the American Express Global Customer Service Barometer in the United States, 55% of the sample decided not to pursue a purchase of goods or services they had initially planned to do due to bad expectations about the quality of customer service. In addition, 66% of respondents said they would spend more (up to 13% on average) with suppliers that offer them excellent customer service. According to Peter Fader, Wharton Marketing Professor and Associate Director of Wharton Customer Analytics Initiative, as consumers “we are becoming more demanding (…). We have the mindset that ‘the customer is king’, so still expect first class treatment.”
Unfortunately there is no magic formula, but there are some key points to keep in mind in business strategy. One of the most important is the care of employees. Companies that excel in customer care tend to invest in training and employee satisfaction. As indicated by Richard Branson, Founder of Virgin Empire, “If your people are happy where they work, if they are well paid and are in a harmonious environment, they will perform better and therefore give better service. If you give attention to the customer and you care about them, they become a loyal customer for life. Everybody wins”.