Five Good Reasons to Hold On To Your Existing Customers

It costs businesses five times more to win a new customer as it does to keep existing ones – according to a study by mystery shopping and retail intelligence analysts, Retail Active.

And repeat customers typically spend a third more than new ones.

Retail Active’s managing director, Julian Chamberlain, says: “It proves beyond doubt the value of holding on to your existing customers – especially in challenging trading conditions.

“To do that – you have got to keep them happy and offer them better customer service than your rivals.

“Maintaining high levels of customer service has never been more important.

“Repeat customers are the heart of every business and are far more profitable than new ones. They have a better understanding of the brand’s value, plus they are easier to find and communicate with.”

Retail Active is Britain’s leading mystery shopping company, sending out thousands of undercover agents each year to monitor customer service standards in a wide variety of nationally-known companies.

Although it can be vital for businesses to attract new customers, it is usually much more beneficial to turn the ones you have into loyal lifetime customers.

It is offering a five point guide to businesses on how to keep their existing customers happy.

Julian Chamberlain said: “Seeing as one new customer costs as much as five existing ones – we though the five point plan was very appropriate.

The Retail Active Guide is:-

1. Always seek to identify and solve complaints quickly. Customers will have much more trust and increased loyalty if you do this.
2. Keeping customers loyal is critical, so providing a good product or service is core to success.
3. Front Line is Bottom Line! Keep your customer facing teams highly motivated and focussed.
4. It's worth remembering that every dissatisfied customer will tell up to 10 others of any poor experience.
5. Always look for ways to exceed your customer’s expectations. Often ways to exceed expectations cost a minimal amount and can give huge financial returns
6. Always consider the Lifetime Value (LTV) of a customer. To do this take the average transaction size and multiply this by the number of purchases the customer makes from you each year. Only then can you fully appreciate just how important existing customers are: As a rule of thumb you should seek to retain every customer for at least five years.

Increasing Customer Loyalty: A Case Study

California-based pizza maker zpizza understands the importance of repeat custom to its business, having recently run an integrated direct marketing campaign combining mail, e-mail and mobile to entice consumers to join its ‘ztribe’ loyalty club. The chain - which is known for making gourmet pizza with unique toppings – is hoping to build the club with the long-term goal of doing more business with its members in the future.

Zpizza particularly wanted to increase the number of ‘heavy users’ – customers who spend over $50 a month and order at least twice - at each of their stores across the US. The aim of the campaign was to identify local people and entice them to join the loyalty scheme.

The zpizza campaign consisted of pizza themed scratch cards that were mailed to up to 3,000 people in the local area surrounding each store. Recipients could then text in their winning code revealed on the scratch card along with their email address to claim whichever prize they had won. There was an assortment of prizes, of which the majority were free coupons; however prizes up to $5000 were possible.

The result of the campaign was a resounding success. Zpizza not only spurred existing customers into action, but also reached potential new customers; receiving nearly 2000 entries from their scratch card campaign. Registrations to ztribe were up nearly 20% compared to the regular sign-up rate. Zpizza hopes to run another loyalty promotion in the near future.

The majority of businesses, including zpizza, understand that encouraging repeat business can have a huge positive impact on their bottom line. Most recently, a study from business intelligence consultant Retail Active found that it can cost as much to gain one new customer as it does to keep five existing ones, and that repeat customers typically spend about one-third more than new ones.

Vigorously pursuing repeat business can have many positive effects, including increased sales, reduced costs and higher customer satisfaction rates. Better relationships with customer’s increases brand loyalty making it less likely for them to defect to a competitor.

Zpizza’s case study above highlights the importance of reaching out to your existing customers. As a mystery shopping and business intelligence company, Retail Active knows the power of giving existing customers the best experience possible by leveraging ‘service excellence’ to keep your customers coming back to you time after time.

Staycation is here to stay holiday at home brits say “same again”

Almost nine out of ten Britons who spent a holiday-at-home “staycation” last year would choose to do the same again – according to new research.The staycation became a popular choice for holidaymakers in 2009 thanks to the recession and the tumbling value of the pound against the Euro.


This year it’s the threat of a travel disruption from the volcanic ash cloud and airline strikes, which may be influencing vacation decisions.


According to a survey by the mystery shopping and business intelligence specialists, Retail Active, most Brits were quite happy with their UK holiday, despite the washout weather and wouldn’t hesitate to stay at home this year.


It says a third of those questioned have already booked a British holiday and another third hadn’t made their minds up yet about where to spend the summer.Only 26 per cent plan to go abroad.


Eighty five per cent of the 2000 people polled said they had taken their main holiday in the UK last year and 88 per cent said that, based on their experience – they would do so again.

Ninety six per cent said they would recommend a UK holiday to friends.


The main reasons for choosing a staycation are:


* Increasing cost of holidaying abroad - 32 per cent
* Effects of the recession - 20 per cent
* Fancied a change - 18 per cent
* Cost of the Euro - 17 per cent


Fifty per cent of staycationers rated their UK holiday as “excellent” value for money, 41 per cent said the value was “good” and incredibly only 2 per cent thought they’d had “poor” value.

Self catering cottages or apartments were the top choice – 31 per cent; Caravan holidays were also popular at 21 per cent, closely followed by hotels at 19 per cent. Ten per cent chose camping in a tent - but just over one per cent went for the traditional B and B. The West Country was the favourite staycation destination – with just over 14 per cent choosing Cornwall and seven per cent, plumping for Devon.


Other top spots were, the Isle of Wight, Pembrokeshire, Bournemouth, Llandudno, Newquay, Scarborough and North Norfolk.Whitley Bay, Tynemouth and Worthing were the least popular.


Retail Active’s managing director, Julian Chamberlain said: “From the results of our survey, it looks like the “Staycation” could be here to stay for the foreseeable future.

“Many Britons holidayed in this country for the first time last year and many people were worried that British destinations and hospitality may not come up to their expectations.

“In fact, we ran a survey which showed that British accomodation had not shaken off its 1970’s Basil Fawlty image.


“Our latest results show that people have been very pleasantly surprised by what they found in the UK.

“Thirty seven per cent of those polled said they had already booked a holiday here this year and about the same number hadn’t made their minds up yet – so British resorts could be in for a bumper year, especially if the forecast of good weather is correct.”

Hidden Charges Rip-Off Sparks a Consumer Revolt - New Survey

Eight out of ten people would not willingly go back to companies which hit them with hidden charges, according to a new survey.

And there’s a warning that hidden charges are sparking an angry consumer backlash, which could soon start to cost offending companies business.

Budget airlines were named as the worst culprits for ripping off customers with hidden charges – according to a survey by the mystery shopping company and business intelligence analysts, Retail Active.

A catalogue of complaints from customers includes a traveller being forced to buy a new full fare ticket after getting the names wrong on the booking form.

The survey, which polled 2000 people, says customers are fed up with being hit by an increasing number of hidden charges in a wide range of sectors including in the leisure, holiday, entertainment, travel and on-line retail sectors.

Customers are demanding action to force companies to come clean about their real costs.

Ryanair and Easyjet were named as the worst offenders for bumping up advertised budget rates with a string of hidden charges, which could add hundreds of pounds to a booking.

Many of those taking part in the survey said they had abandoned the process of making an on-line booking with budget airlines, as the ad-on charges piled up.

More than nine out of ten people said they resented paying hidden charges and the remainder said they only found it acceptable if extra services were involved.

The same number said they didn’t feel they were being advised about extra charges in time and that they were left until the last minute – when it was too inconvenient to abort the booking.

Top complaints against budget airlines were:-
• Adding charges for essentials like checking in, baggage allowances and paying on credit and debit cards when there was no other choice.
• Paying to guarantee passengers could sit together
• Exorbitant airport charges
• Paying “penalty” charges for administration for errors made while booking
• Exorbitant fuel, airport charges and transfer fees

Retail Active’s managing director, Julian Chamberlain said: “Our survey reveals growing consumer anger with companies advertising misleading prices and then sneaking in hidden charges as part of the purchasing process.

“For many people, one more charge has become the “last straw” and they’ve called off the deal. More than 86 per cent of those surveyed said they would not willingly return to a company which hit them with a hidden charge at the end of the booking.

“Many of those taking part demanded that retailers should be forced to be honest about the real costs.

“It is clear that consumer patience is running out over hidden charges and companies persist with this practice at their peril.

“Two budget airlines were named as the main culprits – but there are many other areas where customers feel exploited – including hotels, “all-inclusive” holidays, restaurants, concerts and on-line shopping.”

One respondent booked at a hotel advertising free meals and accommodation for children only to be told there was a £20 per child “supplement”.

Postal charges for goods ordered on-line was another problem area – with customers reporting a £25 delivery on an item costing only a few pounds and being charged two lots of postage for two items in the same parcel.

Julian Chamberlain said: “It is obvious from the response that hidden charges are becoming a major consumer issue and that companies which don’t fairly publicise their extra charges could soon start to feel a backlash from angry customers.”

Retailers Look to Mystery Shopping to Sharpen Their Competitive Edge

Retailers are increasingly turning to mystery shopping to give them a commercial advantage over their competitors.

Tough market conditions world-wide mean retailers are having to fight for every pound – and the standard of customer service is a vital ingredient in winning and holding on to business.

Mystery shoppers give businesses essential feedback on the performance of their staff and collect other important market related information.

Julian Chamberlain, the managing director of the Britains’ leading Mystery Shopping company, Retail Active, says there has been a dramatic increase in approaches from national and international brands looking for help in improving their levels of customer service.

Julian Chamberlain said: “More and more companies are turning to Retail Active for advice on how to improve their customer advocacy. Clearly, the importance of customer service has an increased relevance in the current market and big household names are taking it very seriously indeed.

“Good customer service can hold the key to a company’s success or even survival in these trying times.

“Our experienced mystery shoppers give rapid and accurate assessments of customer service and produce reports which can be acted upon within 48 hours.

“Understanding customers and their needs has never been more important, in a market where they hold the upper hand.”

Retail Active has major clients in the automotive, retail, leisure, food and drink and public service sectors.

Fraudsters Target Mystery Shoppers - Here's How to Spot the Scams

Britain’s “Undercover army” of Mystery Shoppers is being targeted by fraudsters, who are trying to cash in on this increasingly popular part-time activity.

Thousands of people, who want to earn valuable extra income by monitoring customer service standards in retail businesses and public organisations across the country, risk falling prey to a series of scams by bogus companies.

The internet-based tricksters ask would-be mystery shoppers to carry out assignments and then demand an “advance fee” or a registration charge.

The advance fee scam promises to fund the undercover assignment in advance, with a money order which comes to more than the cost of carrying out the work. The shopper is then asked to send the surplus money back to the company – only to discover the money order isn’t valid.

Other scams involve an up-front registration fee. Potential victims are targeted by huge volumes of unsolicited emails on random lists.

The fraudsters have angered genuine Mystery Shopping companies, like Oxford-based Retail Active, which has a wide variety of clients in the Automotive, Food and Drink, Government, Hotels, Leisure, Retail and Travel sectors.

The company gets dozens of calls a week from people worried that they have been duped – or are about to be.

Elizabeth Mallah, from Hampton, Middx fell for one of the scams after she responded to an unsolicited request from a bogus company on Facebook.

It asked for a £34 registration fee, with a money back guarantee if she didn’t enjoy mystery shopping.

Elizabeth said: “The total bill finally came to £40, with extra money included for “currency exchange.” All they sent me was a list of mystery shopping companies – which I could have got for myself for nothing on the internet.

“I’ve been asking for my money back – but they haven’t responded to any of my requests.

“It is a scam and should be exposed.”

Retail Active’s managing director, Julian Chamberlain says: “This time last year there were virtually no calls like this – now we are getting up to four a day. Many of the on-line scams are offering people unrealistic prospects – at a cost.

“We have also received reports of people being asked for personal details, which are then sold off to use on marketing lists – or for other uses.

“No reputable Mystery Shopping company would ever ask for money – so that is the first way to establish whether a company is genuine or not.

“Mystery Shopping is becoming increasingly popular and provides a valuable service to industry and a very welcome source of part-time income for thousands of people, especially at a time when cash may be tight.

“We are very angry that fraudsters are trying to exploit people who genuinely want to help improve levels of customer service – and earn some much-needed extra income as well.

“We’ve drawn up a five point guide to help mystery shoppers avoid being conned.

1. Do not apply to be a mystery shopper through a list, club or agency. Always apply directly to mystery shopping companies.

2. All reputable mystery shopping provide online training as part of the application process. If there is no training then the likelihood is that you are being conned.

3. If in doubt phone. All genuine mystery shopping companies such as Retail Active advertise their telephone number and can be contacted directly.

4. Never, ever part with cash in advance. If you do then there is a high probability that you are being defrauded.

5. There are hundreds of thousands of active mystery shoppers in the UK, ask a friend if they are a mystery shopper. The chances are that they are or at least know someone that does. Ask them who the best mystery shopping companies are.

If in doubt register with mystery shopping company Retail Active at www.retailactive.com.

Children Gorge Up To 13 Easter Eggs Each

Ten to fourteen year olds will munch their way through an average of more than of two and a half kilos of chocolate each over the Easter Holiday, taking in nearly 13000 calories and 650 grams of fat – according to new research.

The survey, by the mystery shopping and business intelligence specialists, Retail Active, says a typical 200gm Easter egg has 990 calories and 50 grams of fat – and youngsters eat an average of 13 of them – many in a chocolate-fuelled orgy first thing on Easter Sunday.

Retail Active’s managing director, Julian Chamberlain said: “We polled a sample of 2000 people and discovered that youngsters can receive as many as 13 Easter eggs each. Families with two adults in their forties and two children under 14 could have an amazing cumulative total of 30 Easter eggs in the household over the holiday.

“Seventy seven per cent of adults allow their children to tuck into their Easter egg binge first thing on Easter morning – before having any breakfast or even a drink.

“Only three per cent of the people polled said they look at the nutritional content of Easter eggs and this means that they may be unaware of the huge calorie and fat intake. The typical ten to fourteen year old will eat 2.6 kilos of chocolate, that’s 12,870 calories and 650 grams of fat.

“Seventy four per cent of parents and carers said their children eat at least three quarters of all the chocolate they receive before the end of the bank holiday.

“Only 26 per cent said they ration the chocolate over a longer period.

“Easter has a dramatic effect on dieters too – with seventy per cent saying they will suspend their regime to enjoy the seasonal chocolate fest.”

According to the findings the peak age for Easter eggs consumption is 10 to 14, with youngsters consuming an average of 13 each. Next is the 15 to 19 age group, weighing in with 11 each.

The 40 to 59 year olds and the over 75’s have the lowest consumption with an average of just one.

The poll discovered that just over half of adults treat Easter in a similar way to Christmas.
Julian Chamberlain said: “It’s a big family occasion, with the Easter Bunny playing a central role in the festivities for children of nine and under.

“Seven out of ten parents have adopted the American tradition of holding a “hunt the Easter Egg” events for their children.

“An overwhelming 88 per cent of consumers said attractive packaging was more important than nutritional content – even though they were aware that eating chocolate to excess may be bad for them.”