Research Essay

22710 Words91 Pages
Customer Relationship Management - System or Attitude? Share A colleague recently lamented to me "I was so annoyed that the XYZ coffee shop in the ABC Centre took sooooo long to give me a second coffee one morning, even though I was close to the machine and kept looking expectantly, I decided to ‘punish' them by going elsewhere for a year. At an average of three coffees a day @ $3.20 each = $9.60 a day for about 220 working days a year, that could cost them $2,112 a year. (That's why my new office now has a cappuccino machine!!) Given that I was traveling a fair bit, I figured their poor service cost them at least $800 to $900 for the year that I gave them a miss." Do you know how much business each individual customer brings you? More importantly, do your front line staff know? I wonder what impact it would have on the staff at this coffee shop if they knew that every regular customer had the potential to bring them at least $2,000 gross revenue each year. Do the staff know how many "regular" customers they have per day? And, what does it take to turn a "drop in" or "first timer" into a regular customer? How would the staff respond to customers if every time someone came in they had at front of mind "this customer is paying $3.20, but they could be worth $2,000 to our business". It's been said that your first time customer, even your first time visitor (say, to your website) is always the highest cost to you. You've had to spend your hard earned advertising dollars to get them. But it's the repeat customers that really provide the best returns. If they keep coming back to check out your site, your products, your services, or your information, you've clearly developed a relationship with them. You have established credibility and trust. Once you've done this, the chance that these repeat visitors will buy from you increases exponentially. Building

More about Research Essay

Open Document