Instigator Blog - Latest Comments in Client Retention is the Key ROI of Great Customer Service

Re: Client Retention is the Key ROI of Great Customer Service

alantollemache — Wed, 30 Sep 2009 02:12:21 -0000

Companies can be "too friendly". There is no point in hanging on to customers if they are not profitable or if you run a loss by servicing them. Customer service is important, but organisations are in business to make money.

Re: Client Retention is the Key ROI of Great Customer Service

Naveen Gupta — Tue, 09 Jun 2009 05:24:53 -0000

These are words the words of wisdom from Mike Mcderment and wisdom comes from experience. I believe retaining your existing customers is the first rule of marketing. It is said that the cost of acquiring a new customer is six times more than retaining your existing customer. It also suggests brand loyalty and ultimately leads to word of mouth publicity.

Cheers
Naveen Gupta
http://www.invoicera.com

Re: Client Retention is the Key ROI of Great Customer Service

Jamie Ruben — Mon, 08 Jun 2009 14:32:31 -0000

Thanks Ben,

If you don't mind this conversation makes me think of another pressing issue in customer service that I have been strugglin with in my career. A couple of years ago I worked doing support for a webserver. I would help people with their web issues via email and web chat. I had worked in customer service berfore and always felt that personality, friendliness, demeanor were core values for customer satisfaction and quality service. Now, I struggle finding the best way to bring these values to the service when communicating via email and webchat.

I just started working at a website travelhqr.com I am happy with product, really smart site, well run, but they make us right emails to clients and users that are really friendly, personable and sometimes you should add a compliment and greetings etc etc. To me via email I wonder if this comes across as insincere. I like their concept and it's a great site, but is this really the best way to execute good customer service Via email??? or,
does it come across as insincere?

Re: Client Retention is the Key ROI of Great Customer Service

Jeff Talajic — Wed, 03 Jun 2009 00:44:42 -0000

Cool, I got quoted :)

I like to opportunity vs cost-centre comparison. I remember working at a major telco call centre not too long ago and being reprimanded for staying after my shift to call customers back to make sure their issues were resolved. The customers were thrilled to hear I actually cared, but my boss was furious because he thought I was going to demand to be paid overtime.

Needless to say, I left shortly thereafter ;)

Re: Client Retention is the Key ROI of Great Customer Service

Peter Barszczewski — Tue, 02 Jun 2009 10:24:31 -0000

I agree, but "client retention" is too businessey a term. I much prefer Kathy Sierra's way of saying it: you have to make your customers kick ass. It is not about you and your company, it is about them. "Happy" and "Kick Ass" are not just feel good, kumbia, terms. They should be measured, discussed with clear goals set.

Clients do not want "to be retained" by business XYZ. They will use XYZs product/service if it helps them kick ass ... and if they kick ass, then product XYZ is "remarkable", meaning they will remark on it, i.e. spread word of mouth. The corollary of this line of thinking, is it is better to spend money on training your existing or potential clients, than marketing to attract new ones.

Zappos regularly does "remarkable" things. Smarthippo recently did something remarkable, by sending a cake to a client.

Re: Client Retention is the Key ROI of Great Customer Service

riadh — Tue, 02 Jun 2009 10:23:23 -0000

I agree totally with you Ben. A satisfied customer is a happy customer who will refer you to other customers. From there you will have to be constant and provide the same level of satisfaction... (especially when your growth is exponential). And this can open another discussion: how to be constant and how to give 100% satisfaction every time?
People forget that behind the client there is person having expectations. If we listen carefully to them and if we answer them correctly (on time, within the cost, with the quality expected...) we will have happy client (emotions) and trustful client that will bring us more business. I think that emotion is a key point for every relation that we try to build. If the client is happy, emotionally he will open you his doors; if not… (you can imagine). Thanks Ben for this post.

Re: Client Retention is the Key ROI of Great Customer Service

Jason Kiesau — Tue, 02 Jun 2009 00:38:38 -0000

Yep, the most important prospects are the clients you have! It's amazing that so many companies still have crappy customer services.

Re: Client Retention is the Key ROI of Great Customer Service

chiropractic — Tue, 02 Jun 2009 00:32:10 -0000

Excellent words Ben and I have to agree with you on customer service and client retention. It's amazing when you study other industries and learn what they do in the way of customer service and retention improvement. We've discovered that when knowing client retention is number one, even the littlest things related to customer service add up. A thank you to your client for a referral, a phone call to check up on how your client is doing, a postcard to congratulate their kid on graduating high school, all these things add up. I love repeat customers. :)

Re: Client Retention is the Key ROI of Great Customer Service

Marketplace — Tue, 02 Jun 2009 00:07:50 -0000

The message you gave is quite clear. Returning customers indicate that the service you provide is great. And this in turn should pull new customers as well as increase in sales in the long term. Hence better ROI.

Re: Client Retention is the Key ROI of Great Customer Service

Mike McDerment — Mon, 01 Jun 2009 21:25:49 -0000

Nice post Ben, and so true.