Customer Experience News & Trends

What’s a customer really worth? And why it pays to know

When is a $500 return really worth more than $10,000?

Almost every time. That’s the way Chris Zane, owner of Zane’s Cycles in Branford, CT, sees it — and it’s helped him build one of the biggest cycle stores in the country. Zane and his staff don’t have transaction-based relationships with customers.

For Zane, the name of the game is customer lifetime value.

Zane’s Cycles doesn’t have a typical return policy that guarantees a refund or credit for a limited time. Zane’s takes products back at any time for any reason.

Why so lenient? Zane’s done the math: A first-time customer who is happy will likely spend $12,500 over the course their relationship. So taking a return that might not make good short-term business sense almost always makes great long-term business sense.

But it doesn’t end there. Happy customers — people who wanted to return a bike that didn’t fit their needs or a part that didn’t fit their bike — will tell others about the great experience.

So do you know your customers’ lifetime value? Try these:

5 Essential Strategies for Managing a Multi-Generational Workforce in Your Contact Center

Take a couple minutes today and simply look out onto the production floor of your contact center. Chances are pretty great that you are seeing a diverse group of people that span across several generations.  Read more!

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