If You Are Searching for Growth, it Pays to Know More About Your Customers

Here’s a quick reminder when trying to fix sales. Happy customers are more likely to do business with you. Whilst this isn’t particularly shocking, it can be forgotten by struggling businesses.  

Straight sales figures may seem to prove the appeal of a product or service but they can be misleading. A sale does not guarantee future sales. Monthly takings do not always grow with new customers. To really gauge what is building or hindering your growth you need a closer look at your customers.  

Regular customer surveys should already be standard practice for your company. It plays a vital role in the market research needed when establishing your business and it should also be your means of determining customer experience. The key question on any good feedback survey asks whether the customer would recommend you to others. The higher the answer, the better news for your company.  

This concept leads into the “net promoter score,” as explained in this video. Put simply, you use feedback from customers to help you improve your service to both gain and retain more customers.  

By just using your front line staff to engage with customers, you can work to improve your net promoter score. Thanking and rewarding loyal and happy customers ensures more recommendations and more new customers. Directly listening to and addressing customer concerns will improve the opinions of possible detractors and help reduce the number of lost customers. A simple change that will do wonders in improving your reputation.  

Let’s look at Apple and their success. Their growth over the last decade has owed a lot to brand loyalty earned through how highly their early adopters and promoters think of their products. They have since developed in new areas by addressing the concerns of their rival’s customers and created products that fulfilled these needs. They then won those customers as fans and promoters. Apple is now one of the biggest world brands and a massive portion of the population has at least one Apple product in their homes.  

This is how a net promoter score leads to growth. Build loyalty in happy customers as well as converting dissatisfied customers from both your own business and those of your rivals, and you boost your net promoter score.  

How you approach your net promoter score will depend on the feedback you are receiving. Your instinct may be to win back lost customers but this is not always the case. A look back on our blog about bad customers will tell you that. Knowing when to cut your losses is an important part of getting back towards good growth.  

Say that your loyal promoters have similar and particular needs that are not shared by your detractors. You will find more success in sticking with your loyal customers than trying to appeal more to the unhappy ones. You may lose the unsatisfied customers, but you will gain more by focusing on what is working well. Only focus on the negatives when they are outweighing the positives. If too many customers are put off of returning due to a certain part of your service then change that part of your service. If enough customers call for a certain service or product that you do not have then work on getting that product or service in.    

Shape your business practice around customer feedback and your net promoter score. Work on supporting and rewarding loyal customers to strengthen your reputation. Build up the ratio of new customers to lost customers. You will soon see how happier customers will encourage better business and better growth.