Last Updated on January 31, 2019
According to Harris Interactive, 60% of customers are willing to pay MORE MONEY just for better service. This is a startling statistic for companies who are dumping loads of money into new marketing initiatives in an attempt to grow their business. It suggests that there’s more to growing a business than just having a competitive edge, a unique selling position and a highly targeted marketing strategy.
It suggest that some of your competitors might be stealing customers right out from under you, in spite of having smaller marketing budgets and less effective marketing strategies. But what will shock call center managers and business owners even more is that the state of the economy seems to have very little impact on this statistic.
In fact, economic uncertainty might be creating the opportunity of a lifetime for business that have their “stuff” together in the call center. Even with a smaller marketing budget, you could grow your business by 20% to 50% over the next few years, simply by adding ONE new piece of technology.
Let’s Do Some Simple Math
What option would you pick?
- Option #1: Pay $5 to earn $6
- Option #2: Pay $8 to earn $15
If you’re a smart entrepreneur, you picked Option #2. Of course, that’s the right answer. But that doesn’t mean you’re applying even the simplest math skills to your business.
When it comes to marketing strategy, are you REALLY choosing option #1? Instead of thinking about your marketing budget, stand back and look at the entire picture.
How much do you pay for a lead?
How much do you pay to turn that lead into a sale?
Now, that’s where a lot of us stop.
But let’s keep going…
What’s your retention rate?
What’s the lifetime value of one customer relationship?
What’s your average customer life span?
Most important, what would happen over the next year if your retention rate decreased by 20%, your lifetime value per customer increased by 20% and your average customer life span increased by 20%?
In other words, how much are you earning, or losing, because of the things that are happening AFTER a sale is made?
According to the consumer statistics, most companies are losing out on customer service. The #1 reason a customer will LEAVE YOUR COMPANY and go to a competitor, is poor service. Harris Interactive reported that more than 85% of customers left one company and started doing business with another because of poor service.
If you’re serious about growing your business, it’s time to look at the entire picture and asking…
“Where Are the Holes in My Boat?”
You’ve probably spent a lot of money on marketing, lead generation, SEO, email marketing and social media. According to the newest studies (2014), 47% of businesses are planning on spending MORE money on marketing this year.
But is this really smart considering that you could be losing money through lost customers? Is it worthwhile to pile in more customer orders and attempt to make up for low profit margins by increasing your sales volume?
In the start of this article, we mentioned the one piece of technology that can grow your business by 20% to 50% starting this year. That one thing is call recording technology.
Want better customer service reps? They need training. Your call center manager needs to know HOW to train them, and for that, they need to know what’s really happening on your calls. Don’t let your competitors beat you with simple math. If you’re ready to grow your business WITHOUT increasing your marketing budget, now you know how.
Last Updated on January 31, 2019