How to understand customers better

Some time ago we were asked to write a case study on one of our clients. Their customers are divided into three core segments, based on spend per annum.

The company's main strategy was to concentrate on the 'higher end' customer - offering a highly tuned personal service to increase average spend and ensure retention. However this strategy, tended to adversely affect lower spending groups which led to a poor customer retention rate.

The company felt that this was mainly due to their lack of understanding of the customer at the lower end of their customer base, which meant that they were delivering an inconsistent service and erratic customer experience.

After their assessment , which showed disappointing satisfaction from their low spending customers, we were asked to run a series of in-depth interviews with selected customers from the lower spend category in an effort to understand more about them.

The interviews covered motivation, buying behaviour, views of the company and internet usage.

The outcome showed that the perceptions that the company had about these customers were flawed. More importantly, there were real opportunities to develop their business within the company.

As a result, the company put detailed plans in place to realise the potential of customers at the lower end.

This is something I think we are all guilty of: assumption. If you actually take the time to ask your customers what they truly think of you and the service you provide, listen to what they say, and act on it - your retention will grow, they will recommend and without doubt your profitability will improve.

Contact us: enquiry@investorincustomers.com