“We need more customers!” Most likely, you have either thought or even said this to your sales and marketing team. Especially at the slow times of business, we want to rely on the flow of new customers. This methodology just comes naturally to us, bring in new customers and the problem will be solved. But is that entirely true? In 1895 Italian economist, Vilfredo Pareto, discovered that virtually all economic activity was subject to a principle, in that 80 percent of the wealth of Italy was controlled by 20 percent of its population. This principle is widely known today in business as the 80/20 rule, put simply it is the rule in that 80% of your business’s revenue comes from only 20% of your loyal customers.
In business, it is vital to keep this in mind for strategic planning, this quality is shared by the world’s greatest important leaders. As the leader in your business, it is essential to implement this type of activity in your day to day efforts. I believe it starts all from the greeter, the customer service, the phone operators, the front person if you will. We so commonly overlook the importance of quality customer service and being courteous as soon as a customer first meets someone from the organization. For example, take a look at Chick-Fil-A, the chain ranks first in restaurant customer service surveys, Chick-Fil-A says, “it’s a service so consistent because it invests more than other companies in training it’s employees and helping them advance their careers – regardless of whether those careers are in fast food.” We all have had an experience that left a bad taste in our mouths on a business, pledging to never visit there again. I know I have.
I believe if we took a little more time in training and supporting all members of the staff, from the front liners to management, as simple as smiling more, being courteous, being appreciative, the results would be astounding. Not only will customers enjoy the visits to the establishment but they will be more inclined to tell their family and friends. Today, one of the biggest influences for a person to become your customer is recommendations and reviews. That all starts with your customer service, you can have the best product, but if someone doesn’t enjoy their experience the likelihood of them returning is a long shot. Not only will they not return, but with a pleasant experience, the average ticket sales increase because customers tend to want to spend more money supporting a local business that respects and appreciates their customers.
Implement a productive customer relationship strategy and it will be the best strategy for your business! The 80/20 rule will bring in those happy customers more often and you will grow that 20% of loyal customers. And the best thing is it only costs a smile and basic manners!