While surveys are used by companies to determine what strategies they must employ to outwit or surpass the competition, the feedback they provide, while useful, is not the only method used in order to obtain a response. Customer feedback is also provided in terms of the referrals of customers. In fact, this type of customer feedback is probably the most sincere and reliable form of a response that a company can receive.
Referrals Cause Companies to Spend Less Money
Companies that grow because of referrals are doing something right in the areas of customer service, delivery, product offerings or servicing. When a company consistently receives referrals, it can cut its promotional costs, including the money it spends on advertising and even collections.
If you want to increase your bottom line but lower the cost of advertising and business promotions, then you need to provide the type of customer service that invites a stream of referrals.
How many referrals have you yourself received? For you to keep receiving referrals means that your customer feedback shows that customers are having a good shopping experience at your store, whether it is online or inside a retail mall. Also, research suggests that investing in the experience of your customer is not only valuable to your bottom line but well worth the effort if you want to make it your goal and dream to excel in a retail career.
Well Worth the Effort
Everyone feels joyful when a referral is made – not only the customer but also the store’s management and employees. When a referral is received, it makes everyone feel good about the achievement, all of which tells employees that a customer’s experience inside a store exceeded his expectations. It tells company employees that the referral would have never happened without their contributions as well.
One benchmark study in 2009 revealed that there was a direct correlation between an exceptionally good customer experience and the number of referrals that were regularly received by a company.
A Wise Investment
What’s more, when companies become increasingly dedicated to providing a good customer service experience to their customers, the referrals they receive skyrocket through the roof. While receiving referrals is not an end-all way to attract business, research did find that companies that invested slightly over 51% in the customer experience retained referral rates of 10%+ or more.
Research also shows that referrals are approximately ten times more useful and a lot less costly than using current online marketing tools. When you provide a customer with a good shopping experience, you also receive the chance to build a large, if not significant, base of loyal customers and patrons.
When loyalty is fostered, customer feedback in the form of referrals means that customers are happy with their sales relationship, trust the sales person or company, feel they are treated special, and have a good opinion of the company’s products or services. Referrals are generated when sales managers and owners of businesses:
Take time today and see how dedicated you are in serving your customers. Apparently, good customer service makes it possible for you to spend less time and money on advertising and marketing.2015-04-02
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