4 Steps to Increase Profitability by 75%

“Once you create a loyal customer base, it’s tough for a competitor to take that away.”

 

– Joe Mansueto – founder & CEO of Morningstar

A 5% increase in customer retention can increase profitability by 75% – according to a Harvard Business Review case study.

Those numbers are pretty dramatic. Let’s say the folks at Harvard overestimated and the increase to profitability is only 50%.

In exchange for a 50% increase in your firm’s profitability, could you convince just an additional 5% of your customers to stick with you?

Sure – you say! But how?

Customer engagement is the answer. Read on to find out how some of the best in business engage and retain their best customers.

So… How do you engage your customers so your firm can experience those amazing increases in profitability?

  1. Ask What They Want – Sounds pretty simple, but it’s like getting the answers to the test before you have to take it. Ask your customers what they want and then deliver on it.
    You can do this in hundreds of different ways: surveys, focus groups, one-to-one interviews, crowd sourcing – the methods available to gather the information are endless. Do a quick brainstorm with your team and I bet you’ll come up with 20 great ideas.
    The asking part does two great things in your customers mind –

    • It shows you care.
    • It engages them with your business.

    Let’s talk a little more about the engaging part. How does asking your customers what they want engage them in your business? Simple – You listened and you acted.

    What more does anyone ask of in a relationship? Listen to me and then act on the information you requested. (See how Starbucks does this by clicking here.) When you ask your customers how to improve and you act on it you are putting your customers in the driver’s seat of your business. That feeling of empowerment will do amazing things for your customer engagement.

  2. Deliver – If you ask and don’t act on what you hear, it would be much better to never ask. Deliver and make sure your customer hears about what you did with their input.
  1. Measure – If you don’t measure it, you can’t manage it. Know how you are doing. Don’t do this just 1x per year. Your customers are more important than that. The technology to constantly listen to your customers is becoming less expensive every day. At any price, the ROI is incredible.You must measure. Start – Now! Call us if you need help.
  1. Improve – How do you improve? Repeat steps 1 through 3 as often as you can. Listen, deliver, measure and then improve those measures based on what you learned. If you don’t have consistent measurement, how will you know you improved? Measure, measure, measure.

There is incredible increase in profits out there just waiting for your organization to pick it up. Don’t miss this opportunity. Your competitors won’t!

Need help getting started? Contact us now via our website or just give us a call at 229-375-5613 and we’ll help you get going.

Thank you for being a part of our values driven community!

Image courtesy of www.gamedayr.com.

 

By: