The value of experience

It has been proven that money spent on experiences has a much bigger impact on a person’s happiness than money spent on material things. The same can be said about money spent on your customer’s journey versus your lead acquisition.

Recently, Seth Godin, the marketing guru said in one of his articles:

If an Apple upgrade breaks your phone and you switch to Android, it costs Apple more than $10,000.

If you switch supermarkets because a clerk was snide with you, it removes $50,000 from the store’s ongoing revenue.

If a kid has a lousy first grade teacher or is bullied throughout middle school, it might decrease his productivity for the rest of us by a million dollars.

So, this shows the equation can (and should) be inverted. Most small and medium sized financial services firms focus most of their efforts -and hard-earned money- on improving the marketing funnel for customer acquisition. What would happen if that same marketing team dedicated 50% of their time to improving customer satisfaction?

In the services industry it would mean happier, referral-creating, customers.