Companies work very hard to get new customers. And, many firms are even improving their customer service. But there’s a critical phase in the customer lifeycle that very often gets missed. It’s a phase of the customer experience that I call the Engagement Phase:
I define the Engagement Phase as:
The period where customers initially realize their expected value from a purchase
The Engagement Phase starts right after a customer has made a decision to purchase something from you. It begins with the point of sale (PoS) and ends with what I call the point of value (PoV). I define the PoV as:
The point at which customers get the value they were expecting from their purchase and are satisfied with their decision
Too many companies focus on the on the PoS as the key milestone, doing everything they can to close a sale. This is a flawed mindset. Instead of just trying to get money from customers, companies need to focus on getting customers satisfied with their purchase.
There are Engagement Phases in every industry. Here are some examples:
- Credit cards: Between getting approved for a credit card and regularly using it
- Electronics retailers: Between purchase of TV and using as hoped in the home
- Software companies: Between purchasing software and installing it and using it as desired
- Banks: Signing up for bill pay and starting to regularly use it
There are a lot of issues that keep customers from getting the value they expected from a purchase they made. When these issues occur, customers will often have buyers remorse and think poorly of the company that they just spent money with. In these cases, sales can lead to negative loyalty.
There’s room for all companies to improve their Engagement Phases. So don’t just invest in the sale, focus on getting your customers to their PoV after the sale.
The bottom line: How many of your customers reach their PoV?