You have noted that there is a common theme in all businesses. Customers’ attention is majorly on one or two brands, and the rest are trying to pick up the slack. The 80/20 rule is far too common within businesses, as 80% of companies’ revenues come from 20% effort. Equivically, 80% of the industry’s revenue should come to 20% of the businesses. This phenomenon is more true of moving companies and similar service businesses because customers are putting their belongings and themselves in others’ possession. Let’s discuss the reasons why this is the case for moving companies.
Experience is a double-edged sword. I say this because everything a moving company does while interacting with customers is part of the customer experience. However, how it does everything reflects the experience it has attained in its years of existence. The longer a moving company has existed, the higher the probability that it can figure out the recipe for success and deliver excellent customer service to customers, new and old. The more customer a moving company serves, the more experience it gains, the more opportunities it has to learn, and the better the customer service it should offer. Should, not would because it can have all the opportunities it wants and never learns.
Like doctors and barbers, moving companies work on referrals. Suppose a customer has a positive experience with a service business. It is likely that when a friend or family member of the customer is looking for that service, the customer will recommend the business to them. And why not? Because we don’t want our friends or family members to have a terrible experience, we want them to have a pleasant one, which is why we will refer them to a business we had a positive experience with. Referrals are a solid reason why a professional moving company keeps getting more business. Customer reviews on the website are less effective than referrals because we trust our friends and family more. Therefore, when a moving company is professional and courteous, the customer will likely refer the movers to their friends and family.
Loyalty and Volume Customers
One of the reasons why the 80/20 principle holds is that loyal customers keep choosing the same moving company. For a while, put yourself in the perspective of a business that handles project management all around the US. The business has to relocate its employees every time a project finishes and often during projects as well. Now, I do not want to select a company every time I need to move my employees. I only want to deal with one reliable company that is capable of handling all of my moves. What that results in is that a volume of customer lands in the pockets of a single moving company. When that client has a positive experience, he will refer other businesses to the moving company. They will refer the moving company to businesses they are in close contact with. A whole chunk of a market will belong to one moving business.
Notice that I’ve mentioned customer experience before anything else. No matter how long a business has existed in the industry, no matter how many customers the company has been in contact with one time, the moving business will not be able to grow if it does not offer good customer service. For instance, look at Move 4 Less, the company has been in existence since 2004, and it has grown every year since. It is not a coincidence that the company just happened to get more business. Instead, the business has perfected customer service and has trained its employees to be courteous and professional, which has lasted 15 years. This is the recipe for success.
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