Thank your customers to reap rewards

A sincere, well timed "thank you" for customers can reap huge rewards for companies, says a marketing scholar from Michigan State University.

According to the study which focused on an upscale sit-down restaurant, satisfied customers who received an acknowledgement of their comments from the company president increased patronage to the business by more than 50 percent.

The simple gesture of thanking customers was just as effective - and less damaging to the company's bottom line - as acknowledgements that included rewards in the form of gift cards and guaranteed reservations.

"These findings suggest that simple, sincere gestures are enough to drive feelings of gratitude among consumers," said Clay Voorhees, associate professor of marketing and lead author of the study.

Voorhees and his fellow researchers tracked patrons' attitudes and behaviours for a year after they gave the eatery high marks.

While firms routinely collect customer feedback, few act on this information.

Further, little attention is given to managing feedback from highly satisfied customers.

Within a week of completing the online satisfaction survey, customers were sent a thank you email from the company president.

During the next 12 months, the number of repeat visits increased 50 percent for men and 57 percent for women.

"In the restaurant industry where five percent is a big deal, 50 percent blew our minds," Voorhees noted.

In addition, the average size of the customers' party increased significantly.

"So it was not just that they came back but that they came back and brought more people with them," the authors noted.

The increase in party size was particularly striking among women, jumping a whopping 79 percent (compared to a 42 percent increase among men), the study concluded.