A lot of small businesses still underestimate the power of customer loyalty. This is evident in the effort put towards new customer acquisition, through marketing investments, while neglecting the value of existing customers who have already experienced their services. Do you know that the cost of customer retention is less than the cost of acquiring new customers?
As quoted by Beyond Philosophy, customer loyalty is the result of consistent positive experience and satisfaction. So the question is, what can you do as a small business to retain your existing customers, so you can get repeat business from them?
Although dominated by the biggest players such as Fedex and DHL, the courier industry continues to experience the rise of new market entrants, in the form of small businesses. This is because courier services are always on demand! Greater demand for these services is seen in countries with poor national delivery services, hence, privately owned businesses exploiting the opportunity to serve a market need.
What do customers really want from a delivery service?
Every customer has a picture of what a good delivery service is. This influences who they choose to entrust their parcel to, and who they’ll call again for future deliveries. Some of the points highlighted by Aseponde are very crucial for every courier business to know:
- Efficiency – from pickup to delivery, how timely the services are
- Flexibility – the ability to adapt to change, due to unforeseen circumstances
- Customer services – giving the customer the attention required, supporting them through the service
- Safety – putting measures in place to ensure that parcels are in great care
- Fair value – pricing that is not over the top
It has already been established that it is far easier to get repeat business from existing customers than marketing your serivces to new customers with the hope of converting them to paying customers. This means that as you consistently give your customers the best experience using the points mentioned above, there is no reason why they shouldn’t request your services over and over again. Think about it! Everyone always has a need to courier a parcel. What differs is the volume and frequency!
Measuring customer satisfaction
Don’t be overwhelmed by the points mentioned in putting a quality courier service in place for your customers. In reality, there is more you can do, but it is important to start somewhere, maintain consistency, and continue to improve. This leads to a very important question; “how do you know that your customer is satisfied with your services?”
Assuming your customer is satisfied, is not enough. While you may be right or wrong, it is better to gather facts. Facts also help to plan and forecast your business activities. When you know exactly how your customer’s feel about your serivces, your focus will be more aligned to your customer’s needs.
To keep it simple, you can focus on the following ways of measuring customer satisfaction:
- CSAT – This refers to Customer Satisfaction Score. For example, by asking your customers to rate your service on a scale of 1-10, you can get some understanding of their perception of your services.
- NPS – This refers to Net Promoter Score. This is calculated from a simple question to your customers; how likely are you to recommend our services to others?
It shouldn’t stop at the Customer satisfaction and Net promoter scores. You can further ask for more details to understand why, as some customer may have more to share with you, helping you to understand where you can improve your services.
To conclude, being customer focussed is very important. In a courier business, a customer has their expectations of a high-quality delivery service. Consistently delivering to your promises and exceeding customer expectations will help you get repeat courier requests from your existing customers. This is very important to you as a small delivery/courier business that wants to stand out!
Beyond Philosophy. 2019. What is customer loyalty?. [ONLINE] Available at: https://beyondphilosophy.com/customer-experience/customer-loyalty/. [Accessed 21 September 2019].
Aseponde. 2019. 7 Best Qualities of a Courier Service. [ONLINE] Available at: http://www.aseponde.com/7-best-qualities-of-a-courier-service/. [Accessed 21 September 2019].
Boast. 2019. How to Measure Customer Satisfaction for Small Businesses. [ONLINE] Available at: https://boast.io/how-to-measure-customer-satisfaction-for-small-businesses/. [Accessed 21 September 2019].