Good Experiences Compound

May 7th, 2009

One of my points in the bwagy marketing manifesto (download pdf) was that:

“We have all heard, a bad experience results in 64 people hearing about it, a good experience leads to 8 hearing about it.  Sounds out of whack right? Wrong.  If I have a good experience with you I will repeat my purchase, if you keep looking after me, I will keep telling 8 people forever…. and everytime I make a purchase.  Marketing & Business is all about the long term.  If you can get a customer and keep them forever they will sell your products for you.  Easy.   Never forget this.  A good customer experience compounds over time.”

This came from the realisation, that when people talk about a brand they love (or a lovemark) the real thrill and enthusiasm from which they speak from is the continual experience they maintain with this brand.  The fact that they get looked after over and over again.

Karen is one such lady, now Karen is a super mum, she all week as a Theatre Nurse, still finds time to do the cooking, baking, washing, looking after the kids, taking time to really help her friends and family, we all know a Karen in our lives.  They are all absolute legends (and the cornerstones of society).

She absolutely loves Jack Lums, the local fruit and vegetables place, she has been going there for 15 years and she can name all the bad experiences on her fingers, that’s how rare they are! She recommends them to everyone, their price, the freshness, the quality of their produce and they stand behind it.  This consist experience has only compounded her loyalty, in turn she has also spent 15 years raving to them to everyone.  Now if they had tried to take a short cut to make a quick buck they would have lost Karen.  But they haven’t.

You see providing a good experience does compound and pay off over time, the key is it’s a long term strategy, but it’s a solid one.

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One Response to “Good Experiences Compound”

  1. Ben Young Says:

    As an additional note, following the 80/20 rule, you derive the majority of your revenue from a subset of your customer base. I am sure Jack Lums find this as well.

    V (local energy drink) finds that 40% of its sales come from 4% of its customers.

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