Let me start with an outstanding quote said by Former CEO and cofounder of Apple Steve Jobs:
“Get closer than ever to your customers. So close, in fact, that you tell them what they need well before they realize it themselves.”
Now let me clarify what this CCO stands for. It stands proudly as Chief Customer Officer. Now what the hell of a new position I’m introducing?
It includes every duties of an ordinary CEO with an immense grip over customer satisfaction! Period.
Have you ever thought as an entrepreneur how much it hurts when someone spreads bad word of mouth for your product or service?
Before remembering those bad moments, why not thinking of “How to reverse that bloody bad moment?” What if your satisfied users bring every new user at a whopping $0 customer acquisition cost? What if everyone in your circle is talking just great about your business? Sounds good? Well it will need something extraordinary then. You must change your attitude of a CEO and go beyond that, becoming a full time proud CCO!
If not convinced yet, I’ll show you why Customer satisfaction is utmost important for your growth!
#Reason 1: Point of Differentiation.
If you’re a startup running behind investors for funding, you have definitely been asked a lot about your USP – Unique selling point! Some people just start talking fancy technology and some on Great Distribution network but why nobody tell investors that their USP is 100% customer satisfaction? That’s how they are growing and needs fund to satisfy more users!
You better do this. Keeping your customer happy is what will make your business live more than a VC funded one! It is an excellent point of differentiation if you really want to get succeed.
#Reason 2: Reduces customer’s Going away.
Customer satisfaction is what can sky rocket or hammer down your business. Good Customer service will reduce the number of customer churn and results in higher repeated purchase of your product or service. If you really want to make your startup as big as you desire, then you must focus on satisfying your users rather than running behind investors.
#Reason 3: Indicates customer loyalty.
Satisfied users gets easily turned into loyal users and can increase the life of your venture. Customer satisfaction is an ultimate indicator which shows why your business sucks or blossoms. Imagine yourself as a CCO, being applauded by thousands of people for bringing 100% customer satisfaction and booming your venture.! Just Imagine. “PHEWW!”
#Reason 4: Increases Customer Lifecycle value
I’m into Entrepreneurship journey from last 6 years and always heard people talking about CLV. Why it is so important? Because it is what shows how much revenue every user generates in their entire usage lifecycle and which also indicates our ROI on marketing efforts to acquire users.
For example, you might have a cost per acquisition of $500 dollars and a CLV of $750. That’s a 50% ROI from the marketing efforts. Now imagine if CLV was $1,000. That’s a 100% ROI!
Customer satisfaction increases CLV and thus increasing the value of your business too. Understand your users, make them satisfied (astonish them if you can) and see how they will take your venture blossoming bigger and bigger!
#Reason 5: Reduces negative word of mouth.
Business runs on a simple principle of give and take. You either satisfy the need or get behind in competition. Companies which fail in making their user’s satisfied turn out to be losers, no matter how big they are. Remember Yahoo.
Negative word of mouth can kill your business. Don’t ever underestimate it if you really want to succeed.
On the other side, extremely happy users can make your venture sky rocket by repetitive purchase or usage! Remember Google.
#Reason 6: It is always cheaper to retain users than acquiring new ones!
Customers cost a lot of money to acquire. You and your marketing team spend hundreds or millions of dollars getting the attention of target users, converting them into leads and closing them into sales.
Why is it that you then spend little or no money on customer retention?
Think over it. You must focus on customer retention if you want to become an excellent entrepreneur.
Companies which rule the whole world, focus on customer retention.Count the names: Apple, Levi’s, Google, Facebook, Intel, Tata, Toyota and more and more!
These above reasons are well enough to understand the importance of CCO and its presence in your startup. If you’re a solopreneur, then wear this hat too. If you’re a CEO then must include CCO’s duties to make your venture stand out and succeed.
Why I wrote this article?
I don’t own a blog or a professional blogger who keeps blogging. But this article is what made me wake up at 4.30 am and forced me to complete it as it is one of the most important aspects which every entrepreneur should focus on.
Well for my venture, which is growing at a satisfying 2.5% , becoming a CCO beyond CEO is what makes me smile every time I see the sales chart.
In the last couple of months, we as a team, astonished our users with our service at 100% satisfaction rate has doubled our repetitive users.
Our Startup is disrupting the design industry by standing resolutely behind other startups and small companies , providing them daily best quality HD graphics at an astonishing price of INR 400 or on a monthly package of 30 Designs in just INR 11k/month, thus eliminating their need of hiring full time Graphic designers and paying them salary of not less than 15k.
We are Startuppr! Yeah, that’s how our venture sounds. We help starting up!
We are working on an amazing project which will not only add value to the design industry but will also enhance the life of graphic designers who then can be more independent & satisfied with their passion.
If any investor who wants to support us for our expansion, can ping us for financial statements and Pitch deck.
If anybody wants to hear more about our customer retention strategies, can ping us at startupppr@gmail.com.
Yes I tweet. @dgreatone21
Deepak pandey
Cofounder @ Kings PVT LTD, Meccaniko.com, Maglu,inc. and Startuppr.