“There’s a Hole in Our Bucket, Dear CEO, Dear CEO”

I have a two-part question for you: Last year, how much money did your company spend/invest in attempting to win new business? Prospecting? And now the second part: How much money did your company spend/invest in endeavouring to retain your existing clients/customers?

I know, these are tough questions and you are unlikely to know the answers. So, instead, think about all the activity going on in your company last year and I know that you will agree, “hunting” probably took up 80% of the sales team’s efforts and “farming” and “fishing” accounted for 20% - or less? And the financial investment split was probably the same!

What may also surprise you is that between 68% and 80% an organization’s orders in any given year will come from existing customers, unless of course, they are selling commodities. There really is an imbalance there, isn’t there?

Ignored Customers Leave!

Apparently, a commercial relationship is very exciting at the front end for the seller. They open doors, they bring flowers, and they send chocolate. They'd do anything to get the order. But it strikes me, and we could again use the 80/20 rule if you like, 80% of organizations believe that once they've got that first order, then that client is a regular customer and they don't need to bother anymore because they'll ring if they need something else.

There was a very interesting survey carried out by the Institute of Sales and Marketing Management in the UK 18 months ago. They asked the question, “Thinking about when you last changed supplier, why did you do so?” And I think what the Institute was expecting were quite a lot of answers that suggested they were offered new, shinier deals or less expensive deals. But actually, more than 70% of respondents came back and said it was due to the incumbent supplier's complacency. They felt ignored. They felt undervalued and that's the attitude that is prevailing out there, again I suggest, in 80% of the cases.

Let’s be clear, “Customer Experience Management” is a strategic understanding - not a departmental name. Most people, in most companies, don’t think about their responsibility for providing good customer experience because they simply don’t see it as within their remit. Have you ever seen a job description that contained a reference to customer experience?

Excellent customer experience demands the creation of a strong commercial partnership “to create and sustain a mutually productive relationship, which serves the needs of both parties, now and in the future.” The key word here is symbiotic. Partnership does not mean eliminating the tension between buyer and seller - it means that top-performing organizations know how to strike a balance between achieving immediate results and developing the relationship fully.

Stop the short-termism

You have by now realized that this is a burning topic for me and has been for many years. I write about the huge gap between intention and reality when it comes to customer experience. I crusade on the need for much greater focus on customer retention. I speak about the millions of lost dollars in revenue when a customer or client finally becomes disillusioned with the lack of interest from the selling company and succumbs to the charms of a competitor, who convinces them they are “sexy” again. This crazy merry go round of commercial illogicality, insanity and ineptitude is never far from my thinking - it is short-termism.

“Short-termism refers to an excessive focus on short-term results at the expense of long-term interests.” The London Financial Times 

There is always a penalty for poor customer relations. It plays its way out over the weeks and months ahead when people – and those they influence – simply avoid your firm and vote with their feet.

And you, can you truthfully say in your heart of hearts that you believe in the value and need for everyone in the business to help to build good customer experiences? If not, then watch out for the competitor who will figure that out first, or the person competing for your job who knows that is how it’s done.

I can only repeat and then go on repeating as long as I have to, customers are not like tissues, to be used and then discarded. Any company that thinks like that will soon find that the box is empty.

Please check your bucket for leaks and mend if necessary!