Being customer focused = ROI

This is a guest post from Drew McLellan, CEO and Top Dog at McLellan Marketing Group.

I recently read about a study done by the world famous company, Peer Insight (you’ll find them in Businessweek on a regular basis), that reinforced my philosophy that focusing on the customer and their entire experience of doing business with you will yield better long-term results.

They did a three-year study of 40 Fortune 500 companies — and the results clearly make a case for the ROI a company can realize by focusing on being purposeful about the customer experience.

The study showed that companies that focused on customer experience design outperformed the S&P 500 by a 10-1 margin.

Want a concrete example? 80% of Starbucks’ revenue comes from customers who visit their stores an average of 18 times a month.

This Starbucks example also reminds us that when you have created a desirable customer experience, you can also charge a premium price for your product!

No one is going to argue that a better bottom line is a powerful motivator. (Note: Their data was drawn prior to the economic crunch we’re in the middle of.)

But, I would argue that ROI is just one of many ways to measure the value.

Here are some other valuations you need to consider:

  • Employee retention.
  • Customer retention.
  • More of word of mouth. (Which is the most effective marketing tool out there.)
  • Fewer surprises. When you’ve planned the customer experience, you can anticipate problems before they sneak up on you.

And that’s probably just the tip of the iceberg. So why don’t more businesses really do it well?

Building great consumer experiences is a complex undertaking involving strategy, integration of technology, orchestrating business models, brand management, and CEO commitment.

It’s harder than you think — but well worth the effort.

About Drew McLellan

Wall Street Journal calls Drew McLellan’s blog,, "one of the ten blogs every entrepreneur should read." His passion is helping clients discover their story so they can create authentic love affairs with their customers. He's also an author, national speaker, and has owned his own marketing agency in the Midwest since 1995.

Tags: , , , , , , , ,

Comments are closed.

Featured Downloads

9 Things to Share That Start Conversations

Use the examples in this guide to help inspire ways to make your message more portable and shareable.

Read More

3 Must-Use Word of Mouth Marketing Tools

These tools will help you kick off any word of mouth campaign no matter what topic, industry, or budget.

Read More

The Top Four Tips for Multiplying Your Word of Mouth

These tips can help you get your marketing to do more work without a lot of extra effort.

Read More

10 Ways to Turn Around Negative Word of Mouth

The most effective ways to stop negative WOM with examples from Zappos, FedEx, Dell, and more.

Read More

The New Topics Worksheet

All word of mouth starts with a topic of conversation — a simple, portable, repeatable idea that gets people talking.

Read More

The Word of Mouth Action Plan

Create a complete word of mouth marketing plan using this worksheet’s eight simple steps.

Read More