HOW TO TURN CUSTOMER LOYALTY INTO REVENUE GENERATION
It has been said the typical male is more loyal to his barber than their partner, and men will travel long distances just to get shaved by the same person. This kind of loyalty is what many businesses hope for but never achieve simply because the barbershop holds a sacred position in this customer’s head. For the customer, this barber offers more than a shave, he is a confidant, he is a friend, he is a social network, he is an informer, and he is a sports rival, a person to vent to, and an advisor among many others.
This kind of relationship for some becomes intergenerational looping from grandfather, father and grandchild and over the years the barbershop earns millions throughout the relationship. This continuous earning in customer experience is called the customer Lifetime Value (CLV). CLV thus represents the total value to a business of a customer over a relationship and it asks how much revenue from that customer over your entire relationship.
It works on the premise that a loyal customer has immense value to your organization as they refer and repurchase and given that it is cheaper to retain than to recruit a customer; organizations need to better understand the full potential of superior customer experience to their bottom line.
Today the role of the customer experience department is changing; traditionally it has just been to delight the customer but this role is morphing to use their interaction to help cross-sell the company’s brand and products. Progressive entities have embraced this notion that demands the executive to acknowledge Customer Experience as a data collection and revenue-generating function.
To fully actualize this, data collection and analysis have to be prioritized as this informs you on your customers, their habits, pain points, and other trends necessary for informing decisions the organization makes.
With data on your customers, you can turn your customer service into a sales channel and this is true for organizations that operate call centers. An operational call center has many advantages as it first offers economies of scale and thus the organization can do more cold/need-based calls with existing customers. Separately, that call centers operate in controlled environments organizations can register better productivity, monitor individual productivity, and control quality of the customer engagements.
Studies show a call center staff can do between 50-60 calls a day compared to a maximum of 3 by a sales representative and with a 10% conversion rate per day, the revenue generation for the organization is very high.
Cognizant of the potential customer service holds beyond just delighting the customer, as an entrepreneur you need to be able to join the dots between your products and services, the quality of your customer experience, and how these will translate into a sales opportunity for your organization. Key to this will be in knowing your customer (KYC) and channeling interactions with your customers either through a Customer Resource Management (CRM) system or basic data collection through software like excel.
KYC through tracing, tracking, and measuring your customer interactions is a must if your Customer Experience package has to become a revenue generator and as an entrepreneur collecting and analyzing customer data has to be a skill we must muster while also re-imagining the future role of the customer service department to deliver for the customer and the organization.
Should you wish to learn more about nurturing long-term business relationships, contact Springboard Capital at 0700 944 444/WhatsApp Us through the button below or email us at info@springboardcapital.co.ke. While our core business is offering financial solutions, our team members are ready to offer advisory services on matters like Customer Experience and share insights with you on how best you can weaponize your service and internal resources to better serve the bottom line of your organization.
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Article based on Julius Odemba Webinar Presentation – Julius is the Group Head of Customer Resolution & Contact Centres at Ecobank Group; covering 35 countries in Africa and 4 counties outside Africa in five different languages (English, French, Spanish, Portuguese, and Kiswahili). He is a recognized expert in Customer Journey Mapping, Contact Centre Management, Complaints Management, Digital CX and Machine Learning in delivering customer service.
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