Home » Headline News »Training » Currently Reading:

Let’s Talk Business – RETAINING CUSTOMERS!!!

June 21, 2017 Headline News, Training No Comments Email Email

Customer Service – A Very Important Reason to Understand this Interesting Concept: The “Leaky Bucket Theory”

 “So, the question is: How leaky is your bucket? How many holes does your bucket have that are letting your customers constantly pour out.” – Jim Palmer

The Theory

Imagine a bucket as your business and the water as your customers. Your role is to fill the bucket with water and keep it full. But then holes start to appear on your bucket, these are problems or issues in your business which makes you lose your existing customers. A leaky bucket will allow the water in the bucket to seep or drain out. In the same way when problems occur in your bucket, you will start losing your customers.

There are two solutions available in this situation. One is that you can keep on filling the bucket steadily so that it stays full even though water keeps draining out. This eventually means you can keep on attracting new customers to your business to make up for the ones you lose. The second option is to keep on filling the bucket but to mend the holes at the same time to stop the leak. This means you must mend the problems and issues whilst attracting new customers since losing existing customers will not be beneficial in the long run.

So, the question is: How leaky is your bucket? How many holes does your bucket have that are letting your customers constantly pour out?

Does your bucket simply have a few leaks around the seams that let customers occasionally seep out, or is it riddled it with holes, and customers are gushing out from every one of them?

Plug the leaks in your business, and keep the water you’ve already got in your bucket.

It’s far easier, and much more cost-effective, to keep the customers you have rather than trying to attract new ones. It’s also much more profitable. It costs 6X times more to attract and get a new customer than keep an existing one.

In other words, fix your leaky bucket rather than constantly add more water. Customer Service is one answer to that!!

An example of a controllable leak is uncompetitive pricing or poor customer service, while an uncontrollable leak could be changing customer preferences and requirements. An improved product mix and a competitive pricing strategy may bring back some customers, but they cannot bring back customers who have moved to new locations.

Customer acquisition is expensive and there is no guarantee the leaks will stop. A better alternative is a marketing strategy aimed at customer retention and long-term profitable growth.

All the best in RETAINING your very valuable customers.

A Morning thought

Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed.

Every morning in Africa, a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death.

It doesn’t matter whether you’re a lion or a gazelle; when the sun comes up – you’d better be running! – Unknown

“The real art of conversation is not to say the right thing at the right time but to leave the wrong thing unsaid at the tempting moment.”

“You cannot control another person’s behaviour, you can only control your reaction to it.”

All the best!

Richard Coles

Richard Coles, Owner of Coles International Training & Consulting researches, develops and delivers real world learning and organizational solutions to clients’ needs and problems around the world. One area of specialization is Customer Service and leadership initiatives. Richard was in the airline business for over 30 years in prominent roles and worked for the best, KLM, Qantas and Emirates, so understands the travel industry well. To discuss your training needs, challenges, goals and strategy, visit www.colestraining.com and email Richard on: colestraining@gmail.com.

Comment on this Article:







Time limit is exhausted. Please reload CAPTCHA.

Platinium Partnership

ADVERTISEMENTS

Elite Partnership Sponsors

ADVERTISEMENTS

Premier Partnership Sponsors

ADVERTISEMENTS

Official Media Event Partner

ADVERTISEMENTS

Global Travel media endorses the following travel publication

ADVERTISEMENTS