Customer Service Tips - Is Your Business A Leaky Bucket?

Customer service and customer service training are vital for any business.

But, is your business a leaky bucket?

This is a question I always ask small business owners who attend my marketing seminars.

The reason I ask is because many businesses are so focused on attracting new customers they forget about retaining and providing good customer service to their existing clients.

Many are also unable to quickly identify who their most profitable customers are.

In the leaky bucket example we have two businesses in the same industry. Both businesses attract 10 per cent new customers each year. Not a bad effort considering the increasingly crowded and competitive industry they operate in.

Business number one has a 95 per cent retention rate and 5 per cent slippage, while business number two has a 90 per cent retention rate and 10 per cent loss of customers.

Not bad figures to have, but after 14 years business number one has doubled in size and business number two has stayed the same size.

This business is just treading water because it suffers from a 'leaky bucket' with too many customers slipping through the holes in the bottom of the bucket.

Much of this is due to poor customer service. And they don't even know it!

For example, the research shows a typical business does not hear from 96 per cent of unhappy customers.

For every complaint there are 26 others with the same problem and the average person with a problem tells 9 or 10 others. Thirteen per cent will tell more than 20 people.

So that is the cold hard reality of poor customer service.

But it is not all bad. If complaints are resolved those people tell 5 people and it is usually a positive message.

For example, complainers are more likely to do business with that company again compared to non-complainers, and this rate goes to 95 per cent customer retention if the complaint is dealt with quickly.

Everyone makes mistakes, the key is to learn from those mistakes and act on them quickly and you will have even more loyal customers.

Keeping your customers happy will help fill the holes in your leaky bucket and lead to a more profitable and successful business.

Thomas Murrell MBA CSP is an international business speaker, consultant and award-winning broadcaster. Media Motivators is his regular electronic magazine read by 7,000 professionals in 15 different countries.

You can subscribe by visiting http://www.8mmedia.com. Thomas can be contacted directly at +6189388 6888 and is available to speak to your conference, seminar or event. Visit Tom's blog at http://www.8mmedia.blogspot.com.

---

Loyal Customers Take Commitment

In today's competitive world of retail, many stores are implementing... Read More

The History of CRM -- Moving Beyond the Customer Database

Customer Relationship Management (CRM) is one of those magnificent concepts... Read More

Losing Angry Customers

This article offers five ways to help you deal with... Read More

How To Build a Profitable Business

It's never too soon to start saying thanks to your... Read More

Is Your CRM (Customer Relationship Management) System Doomed To Fail?

"Right, People. Let's blast out that mail campaign we've been... Read More

Customer Neglect

What have you done for your existing customers lately? Probably... Read More

Making The Most Of Newsletters

Newsletters can be wonderful tools for communicating with your customers... Read More

4 Things Your Clients Want From Your Company

Sure, all clients are different. They have different kinds of... Read More

Develop Loyal Customers for a Lifetime ? part 1 (1 ? 10)

Traditional marketing strategies encourage business owners to continually grow their... Read More

What Do They Want Anyway?

You want customers. I want customers. We all want customers.... Read More

Whats Love Got To Do With It?

Customer Loyalty, we all want it. Don't we?Some people say... Read More

Customer Service Has Moved Toward Customer Care

As I waited for an answer to my VCR inquiry... Read More

The Number 1 Rule for Businesses - Be Professional

Have you ever walked into a store and things looked... Read More

Automating Your Customer Support

My regular readers will know that one of the things... Read More

Clients?Do You Really Need Them?

Running a successful business takes a lot of energy and... Read More

Why Cant Microsoft Make Soft Packaging?

Why is it that Microsoft wants you to buy its... Read More

Dealing with People - Words to Avoid

You probably realise how the wrong tone of voice and... Read More

Customer Satisfaction Is Your Business

Regardless of what business you are in - you are... Read More

Poor Customer Service - Are Your Customers Driving Away Other Customers

Every customer you have is a word-of-mouth advertiser for you.... Read More

How to Win the Hearts of Your Customers and Friends

Those of us doing business over the internet have to... Read More

Make An Action Plan To Improve Customer Service

Customer Service is a critical factor for keeping your clients... Read More

Customer Service and The Human Experience

Historically, customer service was delivered over the phone or in... Read More

It?s Customer Service Stupid: Delivering Customer Service Training That Sticks

"Society is always taken by surprise at any new example... Read More

Customer Feedback: Everyone has an Opinion - USE IT!

Have you ever been in a department store and known... Read More

The Dissatisfied Customer

We, as small business people, naturally dislike complaints from our... Read More

Customer Service - Winning Customer Experiences

Winning Customer ExperiencesMuch research has been done on what the... Read More

First Contact: The Source of Customer Loyalty

With customers being smarter, more cost conscious, more product knowledgeable... Read More

Saying Thank You to Your Clients

"Thanking your customers" - Why you should do it and... Read More

The Sellers Creed

I will not make sales. I will make Customers.I will... Read More

Customer Service Is More Than Just Being Nice To People

Many organizations tackle to the issue of customer service by... Read More

Customer Service, the Internets Primary Neglected Business Concern

Customer service is everything to a business. Just look at... Read More

Customer Service A Chickens Way

Anyone who knows me knows my favorite fast food restaurant... Read More

Is Your Food Establishment Clean?

Is your restaurant, bar or hotel clean? I mean really... Read More