The Value of a Great Customer Experience
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If you are familiar with the Blue Ocean/Red Ocean Strategy (Kim & Mauborgne), you understand that most Marijuana verticals swim in the Red Ocean waters. That means that you are in a market where you face many similar competitors. There really isn’t much that differentiates you from your competitors.
Customer satisfaction may be best understood in terms of a customer experience. Customer experience is the total sum of a customer’s perceptions, interactions, and thoughts about your business.
One factor that is critical to growing your business is providing an exceptional customer experience. From a meta-analysis of dozens of studies regarding the importance of customer service, the following is some of the data that validates how a great customer experience can be your differentiator.
It takes 12 positive experiences to make up for one bad experience. This is only relevant if you are given an opportunity to correct the negative experience.
95% of customers will share their bad experience with friends and family.
80% of customers say your team members have the biggest impact on the customer experience – citing factors like knowledgeable, friendly, and fast help as top priorities during their customer journey.
Companies in the U.S. lose $1.6 trillion annually because of customers jumping to competitors due to poor customer service. If you stack $1.00 bills, 1.6 trillion would reach halfway to the moon.
Companies that deliver a better customer experience have revenue 4-8% above their peer group. If your dispensary has $1m annual revenue, this equates to at least a $40,000 increase.
It’s between five to 25 x more expensive to acquire a new customer than it is to retain a current customer.
Almost half of today’s consumers won’t consider doing business with a company that has less than a four-star rating.
57% of customers stopped purchasing from a company because of a competitor who delivered a better experience.
If you have a beautiful dispensary, in the perfect neighborhood, with a great product selection, none of that will matter if you don’t retain the customers that make a first-time visit to your store.
Great customer experiences are built upon relationships, not transactions. Relationships are built upon shared experiences.
Thank you for joining our learning community. As always, if you have any questions about creating exceptional customer experiences, do not hesitate to contact us.
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