Is it WORTH Keeping Customers Loyal to Me?

This seems to have an obvious answer but IS IT?


1. We have read that it costs more to get new customers than to keep your existing clients.

2. I remember an article by Ned Roberto, a noted marketing guru, about the subject and the impression I got is that it does not matter.

3. For a needed product or one with strong demand, customer loyalty does not matter. The customer will still buy because he needs it. And for many customers, there is no other choice.

In the case of my lotto, am not sure about that statement. One reason why I got new customers despite there being 5 other lotto outlets within spitting distance (if you can call 50 meters a good spit distance) from mine is that the customers found the Lotto Operator of the others as being "MASUNGIT" (in english, haughty and rude)

4. Have we really figured out how much it costs to give GOOD CUSTOMER SERVICE???

Here's an example: In the mall where I am in, MetroBank says BDO has high labor costs because MetroBank has only about 8 pax versus the 18 that BDO has but truth be told, service at BDO is highly efficient despite the huge volume of customers.

BDO is the only bank I know in the Phils that aside from the regular tellers up front, all New Accounts and other non-teller clerks are deputized (given cash fund) as TELLERS whenever long lines are apparent. Likewise, I also see Branch Manager Madonna (where I bank) doing Teller work when still more teller are needed!!!!!!

Try that at other banks wherein lines overwhelm the tellers and yet there are dozens of other clerks just sitting/chatting in their itty-bitty cubicles oblivious of the long lines and the sour faces of customers. (These banks' lines are similar to the game SNAKE on your cellphone, right? ) And to add tons of salt to the wound while all of this is happening daily, the other bank's manager sits like Cleopatra pretending not to know about any problem among her subjects (that's us. the customers).

5. Does it pay to be CUSTOMER-CENTRIC???

Again I have to cite the BDO at my mall. When Bank Manager Madonna noticed that lines were becoming a daily occurrence because they had to service many customers from other BDO branches to the detriment of her own BDO depositors, she decided to create an EXCLUSIVE LANE JUST FOR DEPOSITORS OF HER OWN BRANCH.

I typically visit her Branch 4 times a day to deposit, withdraw and get coins and its heaven sent what Madonna did. Whereas before the EXCLUSIVE CUSTOMER LANE. waiting in line took 30mins or more, now its more like 3 minutes.

Is it worth it for Madonna's Branch bottomline? Figure this, Metrobank has been Number 1 for ages and now, they are in Second. Guess who's Numero Uno-----BDO.

p.s. Another cliche--Who remembers who came in Second?

6. Because being GOOD to your customer is highly subjective, is there a tool by which a small business entrepreneur may use to measure its worth in pesos and cents??

7. Lastly, GOOD CUSTOMER SERVICE should not mean raising prices because that is the biggest DISSERVICE TO YOUR CUSTOMER.

Help the small business owner by sharing what you think.

Please lend me your thoughts on this. I may be wrong.