Customer Retention = Business Success

by Ben Gardiner ~ November 16th, 2012. Filed under: Uncategorized.

After browsing through an article featured on the Canada Business Network Blog, I was immediately taken back to a reading we completed as a class regarding Zappos, an online shoe shopping company, and how their excellent customer care has helped lead them to become a major player in the industry.

The article, entitled “Turn customer dissatisfaction into customer retention,” explains how business success can be broken down into 4 key goals:

1.  Customer Satisfaction;

2.  Customer Loyalty;

3.  Customer Retention;

4.  Business Success.

What is most interesting to me is how the blog identifies that customer satisfaction doesn’t necessarily lead to customer loyalty. While your customer may be satisfied about a product or service you offer, they may still find something better in another business. A key element to this satisfaction is empowering employees to solve customer issues on the front line, something which many companies lack focus on.

Zappos is an excellent example of how, within a few years, they have made any lifetime customers by simply having exceptional customer service – not necessarily a superior product. While many of the shoes Zappos offers can be purchased at other locations, Zappos ensures the highest level of customer service to all its customers. It is this aspect of their corporate values which has led Zappos to become one of the most profitable online shoe companies.

 

Read more on Zappos’ customer service values: Business Insider

1 Response to Customer Retention = Business Success

  1.   wendytseng

    Customers’ retention is really important, it determines whether or not a business is successful.

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