How Customer Satisfaction can equal 100% profit

When we talk about Revenue optimization best practices, an area that is not given enough credit Is emphasizing and focusing on your current customer base.

We often think about Revenue Optimization as generating revenue from sales and marketing tactics. However good customer service and efforts directly related to client retention can result in higher ROI for your business.

Customer Satisfaction ROI is simply calculated as ((Business Revenue - Expense) / Expense) x 100 = ROI. Example: I spend $100 on a gift for a current customer, maybe this is a birthday gift or because they launched a new project recently and I am sending a congratulations, or perhaps it is even a service recovery (meaning I am refunding them for a less than desirable service experience). That customer then returns to me and gives me $1000 in new revenue as a result of the good customer service or service recovery. ROI on that customer service related $100 spent would be calculated as follows:

((1000 - 100) / 100) x = 900%

In this case, that $100 would give you a 900% return! While this is probably a higher end of the spectrum, you get the point. Customer satisfaction can yield high returns.

If you know that your business produces satisfied customers, but you aren’t sure exactly HOW or how you manage to keep your clients and customers coming back, keep reading and perhaps you will be able to pinpoint a couple of areas you are thriving and an area you may need support in!

Client retention can help optimize Revenue in three different ways:

  1. Reduce Operational Costs. Client Turnover can be costly, just like employee turnover. If you have a business like mine, where you build long-standing relationships with your clients and customers you know the amount of time it takes to build a trusting relationship, learn how to work together efficiently, and a lot of leg work and research goes into a new client. The onboarding process alone can take weeks. Less client turnover means more dollars to your bottom line.

Even if you are in retail or hotels where there is heavy churn with your customers, repeat customers help reduce your costs in other ways…for instance, you know your clients better. You know their needs, wants and desires! Learning this valuable information can save you tons on data and market research if it is available in house. This is golden information to glean from your customers. Cherish it and profit!


  1. Not only that, but nurturing your existing customer profile can increase revenue from current customers. If your customer or client is happy then they are either likely to become repeat customers which results in direct dollars in your pocket, or they increase their spend by expanding your scope of work or choosing upgrades. Many clients will return for a new project with you, purchase a different product in your product line because your other products were quality, or your team spent quality time with them explaining about other features that resulted in a purchase above their original intended purchase. That, my friends, is 100% profit.


  1. And just as a happy customer is likely to return, a satisfied client is 100% more likely to recommend you. Hello Net Promoter Scores! This is why companies spend big dollars trying to determine if you enjoyed your overall experience and if you are “Likely to Recommend”.

What are the best practices you have implemented around your customer satisfaction and client retention? We suggest putting a plan in place that entails regular customer feedback, an opportunity to rectify a situation before a customer “leaves” unhappy, and nurturing your clients.

Need more ideas and support. Our doors are open! If you want support building out your own customized client retention strategy- book a call with our team today here!





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