Why is customer service so important? Well, the Harvard Business Review reports that if you can prevent 5% of your customers from leaving you, you can increase your bottom line profit by 25 – 95%.

US News and World Report did a study and found that the average American business loses 15% of its customer base each year.
68% of customers who stop buying from one business and go to another do so because of poor or indifferent service.
14% leave because of an unsatisfactorily resolved dispute or complaint.
9% leave because of price.
5% go elsewhere based on a recommendation.
1% die.
82% goes somewhere else because of a customer service issue!

So, with the Harvard Business Review saying that you can increase your bottom line profit by 25% - 95% if you can prevent 5% of your customers from leaving, and U.S. News and World Reports says 82% of customers leave one business and go to another because of a customer service issue, we better all be real serious about customer service.

So again, 82% of the customers who leave one business and go to another do so because of service related issues… and what’s really key and sad for you and me is that most of those customers don’t bother to complain. They just leave and don’t come back. And then you’re stuck spending a bunch of time and money trying to get new customers into your store, when with some consistent and persistent messages and training to both your team members and customers they would never have left in the first place.

It’s been shown time and time again that getting new customers into your store is one of the most expensive things you can do to grow your business. Once we have them, we simply can’t afford to lose them.

But this is really great news for you. The retail giants, the mass merchandisers, the category killers, the warehouse stores, the big box stores and the internet are all making it harder and harder for you to thrive. But the great news is that in this most important area of all - the reason most customers leave one store and go to another – customer service... you not only can beat the big guys - you can crush them.

My business can only thrive when your business thrives, so I’m absolutely dedicated to seeing that independent retailers not only survive, but thrive in the shadow of the these retail giants. With that in mind, it absolutely drives me nuts when I hear that people shop the mass merchandisers because of their customer service… and it’s true, one of the major reasons people say they shop at the mass merchandisers is because of their customer service.

That’s crazy! But with their liberal return policies and consistent customer service training these retail giants actually get a reputation of having good customer service. Now I need to tell you, you need to take your game to the next level of customer service, and that’s exactly what we’re going to talk about. Not just good customer service, but Make-You-Happy customer service that gets the customer back time and time again.

At the 35th Anniversary Customer Appreciation Conference & EXPO we held, in May of 2005, one of the speakers asked all 800 people if they had a unique product that people couldn’t get anywhere else. In the entire room of 800 people only 2 hands went up and I’m beating with those 2 their competitors sure think there is a substitute product. None of us have unique products that people can’t get somewhere else, so we need to give them a reason to shop with us rather than somewhere else. And the one place you can do that with the biggest return for your effort and money is with Make-You-Happy customer service.

Now I’m not talking about customer service in a box. This isn’t about the canned “thanks for shopping at Mega-Mart, have a nice day” kind of customer service. We’re talking about Make-You-Happy customer service where even if you mess up, the customer is going to come back because frankly, they like and believe in you and your staff! We’re talking about the kind of customer service were customers are not just satisfied, but loyal. Customers who not only come back time and time again, but enthusiastically tell others about you.

Another great reason to give Make-You-Happy customer service is that it’s fun. People love getting Make-You-Happy customer service. But you know people also love and have a huge amount of pride when they give Make-You-Happy customer service. I’m talking about giving service to the level that the customer simply doesn’t go anywhere else. It’s fun for you and your team. The day goes much faster when everyone has fun.


Keith Lee is the creator of the "Make-You-Happy Management System." Keith developed the system in 1991 when he was burnt out from all of the stresses and time issues involved with running his business. The system creates happy customers, happy employees, but most of all gives you back you life. For more information and articles visit http://www.top-performance-teams.com