Sunday, February 20, 2011
The first question of any business is to understand WHAT business you are in.
Most people think McDonald's is in the restaurant or hamburger business, but many analysts through the years have observed that they are actually in a variety of businesses. They are certainly in the real estate development business. They are in the entertainment business. But most of all, they are in the customer service business.
Every business is first, last, and always in the business of providing superior service to its customers.
It costs a fortune to attract a new customer. The time, money, energy, anxiety and effort to get a new first-time customer in the door is a huge expense. No business has the resources to keep attracting and serving only new customers. The key to profits is in keeping and serving the customers you already have.
Some studies show that it costs up to 85 times more money to get a new customer than to make an additional sale to an existing customer.
No matter what business you think you are in, your first business is keeping and serving and partnering with your customers. It's often called customer retention although it goes by many names, but the principle is always the same: Nurture and keep your customers!
Customer service is about reliability and it's about relationship. It's about trust. It's about the quality of your product, but even more essentially, it's about the quality of your service before, during and after the sale.
Thanks to Philip E. Humbert Group, Inc