What the Data Tells Us and Why We Should Listen
Unbiased, global research featuring quantitative and qualitative studies proves that frequent and thoughtful recognition of your customers (and staff) will directly and significantly increase their loyalty and their engagement (often at a rate of more than 2 to 1).
This same research found that customers who receive strong recognition are 33% more likely to be proactive, in their referrals to your company, than those who simply receive the obligatory courtesy following a purchase – generating 2x as many referrals per month.
Similarly, companies that implement recognition programs of any type, keep customers an average of 2 years longer than organizations that don’t and when that recognition is perceived to be sincere, customers will typically continue to do business with that vendor for an additional 2 years, if not more!
How much extra income would that yield you?
Over the past few years, the term “Appreciation Marketing” has been applied to this critical business building approach. Simply stated, building relationships and customer loyalty by showing how grateful you are for a customer’s business is the foundation of “Appreciation Marketing”.
Why Customers Leave and How To Prevent It
According to a study of all types of small businesses by the United States Small Business Administration (SBA), when it comes to the question of why businesses lose customers, the perception that members of the staff don’t care ranks as the leading factor.
As a matter of fact, nearly 70% of those polled indicated that the perception of a non-caring staffer led their customers to buy from other businesses, which was by far the strongest response of the 6 factors mentioned.
Interestingly, product / service dissatisfaction ranked 2nd and price ranked 3rd , with only 14% and 9% respectively indicating those factors as being the primary reason for their customers change to another vendor.
In other words, the biggest reason we lose customers is that they don’t feel appreciated!