>Its amazing how many businesses don’t recognize the money they lose when they churn and burn through customers. In The Loyalty Effect, the author Frederick Reicheld shares his research that in most businesses, only 5% of the customer base is considered to be loyal customers. Loyal customers are the ones you can count on for repeat business, referrals and retention. That leaves 95% of customers that a business churns and burns through. The sad part is how hard and how much money was spent to get those customers into the door, but couldn’t be kept.

Walt Disney World knows their true measure of success is to have guests keep coming back; therefore, they are continually looking for ways to improve customer satisfaction. For many years, the one area that keeps haunting them is the “wait in lines” guests have before getting into the main attraction. Continuous improvement has been made over the years from pre-entertainment shows, misting of water to cool guests down in the heat, and snake lines to wind vs. straight lines. Now, they have come up with interactive engagement activities for the guests while they wait to get into the center of the ride. Just one more attempt to increase guest satisfaction ratings and make guests happier.

If an organization can increase its loyal customer base by only an additional 5%, Reicheld says that revenues and profits can grow by 85% or more. Why wouldn’t all businesses be looking to do everything they can to keep their customers? Looking through the lens of the organization vs. the lens of the customer, not training employees to be competent and customer service friendly, making processes difficult to do business with you – are all sure ways to churn and burn through the customers currently coming in your door.


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