Opinions expressed by Entrepreneur contributors are their own.
If the 2020s have taught us anything, it’s that companies can no longer simply meet the expectations of their customers or, even worse, fall short of expectations by overpromising and failing to comply on prior commitments.
Instead, businesses should always aim to over deliver while surprising their patrons by giving them more than they ever expected to receive.
Catering to customers like crazy
First and foremost, being able to “over deliver” relies on companies only promising what they know they can provide for absolute certain. Behind the scenes, however, businesses should always plan to double down on these promises.
This could mean giving customers a lengthier estimated delivery time than is actually needed to get their order to them, so that they can have their expectations exceeded when their purchases arrive sooner than expected.
This also provides wiggle room if unexpected circumstances delay delivery – you won’t need to apologize, since the deadline was promised sooner than stipulated anyway.
Moreover, gifting your customers with an extra service alongside their original purchase – such as a free sample or an extra marketing option for a client – is another great way to over deliver, delight your clients and exceed their expectations.
Chilling the churn
According to the Harvard Business Review, it costs 5 to 25 times as much to attract a new client than to retain an old one. Reducing customer churn and ensuring that your customers come back after their first purchase is crucial.
Simply, they’re encouraged to buy more from your business in the future, while contributing to your overall turnover. This is essential to keeping your costs down and profit margins high.
After all, you don’t want to have to spend exorbitant amounts on attracting one new client when the same amount of resources could be used to clutch current patrons and encourage them to make further purchases with your business.
Related: The Science Behind Customer Churn
Birthing brand advocates
When customers’ expectations are met, you may once again receive their patronage if they’re satisfied with your service.
However, when clients are delighted they’re a lot more likely to talk about your business to the people they know, or shout it out on social media.
When over delivering, you elicit the “surprise factor”.
This turns your customers into advocates for your brand, providing free marketing for your company.
What’s more, because modern patrons trust other consumers more than they trust traditional advertising methods. Word-of-mouth marketing cannot be overestimated.
Related: 4 Ways to Turn Customers into Brand Advocates
Many businesses focus too much on how they can draw in new customers, rather than on what they can do to retain their current crop.
Ironically, repeat customers are more profitable, not only because they’re less costly to source, but because they typically make purchases of greater value than first-timers.
According to research by the management consultancy Bain & Company, repeat visitors tend to spend around 67% more than rookie customers.
If you want to benefit from word-of-mouth love, boost the brand’s reputation and improve your relationship with customers? Create a culture of over delivering to reap the rewards for both clients and your bottom line.
Related: 4 Strategies That Drive Brand Loyalty
Business Strategies, Entrepreneurial Advice & Inspiring Stories are all in one place. Explore the new Entrepreneur Bookstore.
Credit: Source link