Why do I have to delight my customers?

You may be wondering of why you should be trying to exceed the satisfaction of your customers. Well, studies have shown that companies who can exceed customer satisfaction tend to benefit by having a good Positioning in customer’s minds and this helps them to:

1)Have a significantly higher customer retention rates
2)Gain significant market share against those companies that are perceived as poor service providers
3)Gain a great deal from word of mouth advertising
4)Benefit by having a reputation that attracts and retains talented staff
5)Better rate of return on investment and sales as compared to companies who are inferior


Now, why would you want to have high customer retention rates when you can always gain more customers? You may think that it may not matter how good/bad a service you give as you can always gain more customers, and therefore you need not consider having returning customers. Well…

1.Acquiring new customers costs five times more than satisfying and retaining current customers
2.A 2% increase in customer retention has the same effect on profits as cutting costs by 10%
3.The average company loses 10% of its customers per year
4.5% reduction in customer defection rate can increase profits by 25-125% (depending on the industry)
5.Customer profitability rate will increase over the life of a retained customer



Are you more convinced now that you should delight your customers and exceed their expectations?