Intuitively we know increasing customer loyalty is a good thing for our business. In fact as the economy has struggled we've heard this more and more. But it's harder to merge that concept into the sharp reality of a financial statement. Tough times require that we prove the value of something before resources get committed to making a change.
Kevin Stirtz, President of the Stirtz Group LLC and publisher of the AmazingServiceGuy.com website has delivered a solution to this dilemma.
His company has developed and released an online tool called the Customer Loyalty Value Calculator. And it does just what you'd think. It shows you the dollar value to your company of increasing (or decreasing) customer loyalty.
The online tool starts with sample information. Or you can enter your own. Then you tell it how much you’d like to improve any or all of three factors: customer retention, repeat business or customer referrals.
As you enter these figures, the tool shows you how you company’s profits and revenue will change.
"Even though this tool is based on a simple concept, the results it shows can be shocking" said Stirtz. "A small change in customer loyalty can have a big impact on your bottom line and this tool makes that fact very obvious."
Using sample figures for a fictitious restaurant, profits went up 29% with only a 10% increase in customer loyalty. The type of business and how it's managed will influence what Stirtz calls the "loyalty leverage" they might experience. But no matter what the business, this online calculator quickly and clearly shows the financial impact of improving your customer loyalty.
“We hope people will use this to spread the gospel of improving customer loyalty” Stirtz added. “Often it’s easier to sell an idea when you have numbers to show people.”
The online tool is free to use and does not require registration. You can use it as often as you want. It also has a print feature so you can print your results (to show the number crunchers). You can see the tool at AmazingServiceGuy.com/
