Middle Customers Drive The Greatest, Untapped Revenue Growth

Byline: This article is based on the Podcast with Lauren Volpe, Chief Customer Experience Officer at Zip Co.

Introduction

Pursuing revenue growth is a constant endeavor. Companies invest significant resources in acquiring new customers and retaining existing ones, all to increase their bottom line. However, a segment of customers often goes overlooked – the middle customers. These customers are neither the most satisfied nor the most dissatisfied with a product or service. In this article, we will explore the concept of focusing on the middle customer and why they hold the key to unlocking substantial revenue gains.

Key Takeaways:

• Focusing on middle customers, who rate their experience as average, can lead to significant revenue gains.
• Investing in improving the experience of middle customers can turn them into loyal advocates and drive customer satisfaction.
• Engaging middle customers involves addressing their pain points and making meaningful changes based on feedback.
• Businesses should view middle customers as a huge revenue opportunity and invest in refining interactions to move them into the top bucket.

The Power Of The Middle Customer

The middle customer is often overlooked in favor of the extremes – the promoters and the detractors. Companies tend to focus on customers who are highly satisfied and vocal about their positive experiences and those who are dissatisfied and vocal about their grievances. However, the middle customers, who comprise a significant portion of a company’s customer base, hold immense potential for revenue growth.

According to Lauren Volpe, a customer experience expert, middle customers rate a product or service as average, neither exceptional nor terrible. These customers may not be actively promoting a company, but they also haven’t reached the point of being detractors. She suggests that by identifying and addressing the needs of these middle customers, companies can make incremental improvements that can push them toward becoming promoters.

Listening To The Middle Customers

To tap into the revenue potential of middle customers, companies need to actively listen to their feedback and take action based on their insights. Lauren highlights the importance of understanding what it would take to move a middle customer from a seven to an eight regarding satisfaction. This could involve streamlining customer service processes, improving the accessibility of support channels, or addressing specific pain points identified by the middle customers.

She also emphasizes the significance of engaging with middle-performing agents within a company. These agents may not be the top performers, but they are also not disengaged or dissatisfied. By investing time and resources in listening to these agents and addressing their concerns, companies can foster a sense of trust, engagement, and value among their employees. This, in turn, can lead to improved customer service and ultimately drive revenue growth.

The Value Of Action And Validation

Listening to middle customers is only the first step; taking action based on their feedback is equally important. Lauren shares an example of how addressing a specific issue raised by agents led to significant improvements in their work life and customer satisfaction. By fixing a tool that frequently logged agents out, the company improved the agents’ experience, saved handle time, and left customers more satisfied.

The key is not just to listen to middle customers but to validate their feedback by implementing changes. This validation demonstrates to customers and employees that their opinions are valued and that the company is committed to continuous improvement. By making these incremental changes, companies can enhance the overall customer experience and increase the likelihood of middle customers becoming promoters.

The Untapped Revenue Opportunity

Despite middle customers’ immense revenue potential, they often go unnoticed and unaddressed. Lauren laments that most companies focus on the extremes – the promoters and detractors – while neglecting the middle segment. This oversight is a missed opportunity for revenue growth.

Middle customers are often the ones who provide the most feedback through surveys and other channels. They are willing to invest their time and effort in sharing their experiences and opinions. By engaging with these customers and making the necessary improvements, companies can turn them into loyal advocates who continue to use their products or services and recommend them to others.

Conclusion

In pursuing revenue growth, companies must recognize the power of the middle customer. These customers, who neither sing praises nor voice complaints, represent a significant revenue opportunity. Companies can improve customer satisfaction, loyalty, and advocacy by actively listening to their feedback, addressing their concerns, and validating their opinions through action. The middle customer segment is an untapped revenue opportunity that companies must pay attention to. So, let us shift our focus from the extremes and embrace the potential of the middle customers to drive revenue growth.