Small organizations that place customer service and loyalty at the forefront of their strategies may be more successful at achieving business growth, and it’s important for martial arts schools to take note of this trend.
Rather than focusing exclusively on growth, small-business owners are prioritizing customer satisfaction because this is often a competitive differentiator for smaller companies, Accordingly, the quarterly American Express Small Business Monitor found 94 percent of business owners consider their ability to fulfill customer needs to be the most significant aspect of their companies rather than organizational size. These organizations can create personalized customer experiences for each client.
“It’s clear that small-business owners make it a priority to put their customers first, and it’s working,” said Athena Varmaizs, vice president and general manager of American Express Canada’s Small Business Services. “They seem to understand that it’s important to invest in growth, but not at the expense of their customers. As such, business owners are using this knowledge to help direct their everyday business decisions.”
How martial arts schools can leverage loyalty to grow
Going above and beyond expectations and delivering an excellent customer experience helps businesses organically attract new clients because highly satisfied people are likely to spread the word. Since martial arts are heavily based on relationships, schools can use this to their advantage.
According to Inc. magazine, attracting a new customer costs five times as much as retaining an existing client. If martial arts schools want to acquire new students, they need to focus on building loyalty among their current students. If students and instructors appear to be disengaged, it may be difficult to retain new customers. Loyalty is the best way to drive business growth.
Loyalty used to describe customer retention, but now it is based on a great experience and high levels of satisfaction, Forbes stated. Loyalty programs, such as coupons and promotions, and convenience factors used to play a role in retention, but customers are becoming harder to please. Many consumers are craving a personalized experience, and martial arts schools have the potential to deliver this. Instructors should focus on connecting with their students and deepening the relationship. This can significantly influence new students’ perception of the school and make them more likely to spread the word about great experiences to people they know.