Colin Sprake argues that staff attitude drives customer loss more than price or product quality. 68% of customers leave because of indifference from frontline workers. Retaining just 5% more customers can boost profits 25–125%, while acquiring new ones costs 5–10 times more.
Questions this video answers
68%.
5 to 6, even sometimes up to 10 times more.
Between 25% and 125%.
A 2% increase in retention has the same effect as decreasing expenses by about 10%.
And customer turned away by attitude or indifference on part of the service provider. So whether you as the company owner or the employees, 68% of the time it's actually the attitude of the people. Isn't that amazing? So people go, wow, it doesn't matter that you had a bad day before you walked into the office. Customers don't care. Customers care that you care about them. Make sense. So 68% of the time people leave your business as a client is because they've had an attitude or some situation with a person in your office or in your business. Let's just keep on going over a few more stats. They're a Pretty alarming stat. 68% of the time it's attitude and it can just be who's the most important person in your office? Who do you think? Frontline. The person who answers the phone. Some people love to buy cheap and pay for. I'm going to get the cheapest person to answer the phone for us. That person is the number one person in your office. Because when those clients don't get good attitude on the phone, the minute they phone in, what do they do? If they're busy hunting and searching around, they will put the phone down and phone somewhere else. That frontline person training just on frontline people. Why? Because really, it's the most important thing you can have in your business is an amazing frontline person. A frontline person. When a person phones in, they can feel the energy of that person, that smile, what have you over the phone. To ensure that they feel comfortable and that they only get looked after as well. A few more stats. It costs 5 to 6 even sometimes up to 10 times more to attract than keep a customer to attract a new one than keep the ones you have. You can boost profits between 25 to 125% by retaining nearly 5% more of your customers. How many of you lose customers? Honestly, you lose customers? Be honest. Okay, great. Pretty much all of us. Okay. Anyway, none of us are infallible to it because of course some of them die, some of them move on, but 68% of them leave us because of our attitudes or the way we treat them. But the key thing is, isn't it amazing? You just kept 5% of them, 5% more than what you're doing right now. You can increase your profits 20 to 125% and a 2% increase in customer retention. This is really one of my favorite stats. A 2% increase in customer retention, which is not a lot. You have a hundred customers only keeping two of them. A 2% increase in customer retention is equal to the same. It has the same effect as decreasing your expenses by 10%. Because what do most companies do when times are tough? They lay off stuff. When times are tough. You should be increasing your customer service. Make sense? This is really interesting. A lot of companies don't do it. Why? Because to increase customer service. It takes money to increase customer service. If you have the right people when you first start out, customer service can drive customer retention, which can drive increase in profits, which drives the overall success of the business. It's really, really important. It.
