The importance of customer experience should be a no-brainer in the spa sector. But if you’ve ever wondered whether you can put a dollar value on it, the answer is yes. That complicated booking process, those unanswered calls, the grouchy receptionist – they’re all costing you – in quantifiable revenue.

Studies have demonstrated the value of customer experience

Research released earlier this year by Avanade and Sitecore found that organizations see a return of three times the amount invested on improving customer experience. The same research found that all areas of the business were positively impacted by increasing focus on customer experience. Some highlights:

 

  • 40% of respondents reported seeing increased revenues in the 12 months since increasing focus on customer experience
  • 38% reported better financial performance than their competitors
  • 19% revenue improvement was reported overall

Separate research released in 2014 found that “customer experience is a major driver of future revenue.”

That study, discussed in the Harvard Business Review, found that customers who had the best past customer experiences spend 140% more than those who had the poorest past experience.

Unhappy customers also cost you in time and resources, as they are more likely to require support and to return products; while happy customers are not only likely to spend more money but may also become evangelists. It would be irresponsible for business owners and managers not to tap into this resource.

Don’t assume that no news is good news. Ask questions.

It’s fairly common knowledge that a vast majority of unhappy customers – often cited to be as high as 96% – won’t complain. They just won’t come back. This is where sending a customer satisfaction survey and calculating your Net Promoter Score (NPS) comes in.

If you want to know whether your customers are happy with their experience you have to ask them.

In his book, The Ultimate Question, Fred Reichheld shows companies how to divide their customers into three categories: Promoters, Passives, and Detractors, based on one simple question:

“How likely are you to recommend [your company] to a friend or colleague?”

Using your customers’ answers to that question, you can divide them into the following categories:

  • Promoters (9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
  • Passives (7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
  • Detractors (0-6) are unhappy customers who can damage your brand and impede growth through negative word of mouth.

By subtracting your detractors from your promoters you come up with your NPS. Only through constant monitoring of your NPS will you be able to deliver the best customer experience.

More than two-thirds of Fortune 1000 companies use the Net Promoter System.

Feedback is best gathered immediately – while the experience is still fresh. Book4time allows you to automatically send a customer feedback survey within your Thank You e-mails.

The survey consists of three NPS-based questions, which can be customized to individual businesses. Using the “out of ten” model, when the guest gives a rating of 7 or less, a list of customizable reasons will appear. Survey responses are then tracked within the guest profile and within Book4Time reports.

Take action

After that, managers can take action, such as:

  • sharing this feedback with employees
  • encouraging happy customers to do exactly what they said they would do and refer a friend
  • taking the necessary steps to improve the customer experience
  • making an apology or compensation offer

Armed with the knowledge of how people really feel, you’re equipped to turn every detractor into a promoter – and every customer experience into a great one.

And that should be your top priority. After all, if you haven’t got customers, you haven’t got a business.

(Image: Copyright: rido / 123RF Stock Photo)

Determine your Net Promoter Score with Book4Time Guest Survey. Book4Time.com offers secure cloud-based spa software solutions to help spa and salon management handle online spa booking, spa reporting, customer communications, and much more all in one place. www.Book4Time.com