Performance in People - Mystery Shopping
 
 

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Are you considering your customers Lifetime Value?

Thursday 23rd April 2015


Performance in People run customer service improvement programmes for a variety of organisations from sandwich shops to house builders who are selling multi million pound homes and just about everything in between.

A common question we get asked is “How can a company where average transaction values (ATVs) are small, get motivated to give their customers the premium service experience associated with transactions worth many thousands of pounds?”

Our advice is to consider the lifetime value of that customer. Let’s take the example of a sandwich shop chain whose average transaction value is £5.70. If a customer visits the shop 3 times a week, 48 weeks of a year; in 20 years they have spent the equivalent cost of a new car! If that customer walks out, never to return again because of a poor customer service experience, it is naive to think they have lost just £5.70 when in reality that loss can be many thousands of pounds.

To engage their people in this view, some organisations ask their front line staff to visualise their customers with post it notes stuck on their foreheads saying…..’I am worth £10,000!’

Always consider this theory. No matter what the average transaction value, always maintain focus on consistently delivering an excellent customer experience for your customers every time they visit your store. You can retain each and every one of your customers, maximising their lifetime value and commercially addressing the well-known mantra; it costs 6 times as much to acquire a new customer than it does to retain an existing one!  

Mystery Shopping | Training | Audits | Customer Surveys

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