A widely quoted statistic gets to the heart of the value proposition behind customer service: “The cost of acquiring a new customer is five times that of retaining an existing one.” For businesses that succeed through developing a relationship of trust by delivering value to the customer, the disparity can be considerably reduced.
It's surprising that in today's business environment with all the hype around the benefits of delivering great value, I still hear an overwhelmingly amount of complaints around clients' dissatisfaction with the value they receive from the various vendors with whom they conduct business. One would think that providing exceptional value is common business sense, but for whatever reason, investing in and developing a culture around providing value appears to be low on the priority list.
I believe that businesses, especially those in the small and medium space, will enjoy incredible success if they build a culture of value by becoming advisors and partners built upon relationships and trust and are able to consistently tell their value story. Delivering value should start from the very top of the company. As a business leader I enthusiastically promote our values and value statement by telling our story to employees, clients, partners and competitors. The best business leaders and the most successful companies spend a great deal of time listening to customers to understand not only what services the customer may need but what type of organization they have, things they are doing well and what challenges they face.
A key component of delivering great value is the ability to solve complex problems. Most business leaders understand that they cannot solve all customers’ issues through their particular set of products or services, however to truly deliver value smart business leaders will develop key partnerships to strengthen their offers. A satisfied customer may tell one or two friends about a company, however a customer who doesn’t believe they are receiving good value from a company might tell ten times that amount.
Building good customer relationships is great, but in todays business climate you cannot build and sustain good customer relationships without simultaneously delivering great value.
Mr. Brown brings extensive experience building companies and leading sales, operations and service organizations. He is the Executive Director of HealthNet connect and CEO of HNcBNc.
The views and opinions on this blog are my own.