Posts Tagged ‘Loyalty business model’

by Jeff Mowatt

Question: what are two words that will become increasingly important to customers over the next decade? The answer, according to marketing guru Frank Luntz, is ”hassle free”.

Customers are fed up with being forced to jump through hoops. Yet bizarrely, even in a slow economy, companies are actually becoming more difficult for customers to do business with—before, during and after purchases. To see if your organization is creating these unnecessary hassles for your customers, take this mini-quiz. Then consider using the accompanying tips I talk about in my customer service seminars and speeches.

When customers arrive early

Do you force your customers to wait outside your establishment until the minute you are officially open? Worse, do you rush them out the door or bar them from entering as closing time approaches? Ever seen customers standing outside a business pointing at their wrists to store employees, trying to compare whose watch is right?

Fortunately, there is a helpful tip on avoiding this hassle that I learned at a convention where I was the opening keynote speaker and the other presenter was Roly Morris, CEO of Krispy Kreme operations in Canada. Roly explained they have a practice called ten before, ten after… meaning they are open for business (and answering phones) ten minutes before they are open, and they remain open (and answering phones) ten minutes after posted closing. Of course, you have to pay employees for the staggered times, but the good will and extra revenues you’ll generate make this a worthwhile investment.

When making buying decisions

Are your customers faced with too may choices? It’s fine to have a large selection to attract customers, but forcing customers to make too many decisions creates stress and buying resistance. As products and services become more complex, customers are increasingly afraid of making the wrong decision. Fortunately, your employees can reduce this customer stress while boosting your revenues, using the rule of three. Here’s how it works.

If you offer your customers only two choices, they may simply opt for the less expensive. However, using the rule of three, your employees would consider all the products and services you offer and narrow them to the top three most suitable for that customer. Interestingly, if you offer three choices from least to most expensive, customers will typically choose the middle option. That means that offering three choices not only helps your customer make easier buying decisions… it also helps steer them away from choosing the cheapest item. Less hassle, more buying. Everybody wins.

When there’s a problem

Can your customers return products to your location, or are they expected to have kept the original packaging and ship it to the manufacturer? Do they face a huge waiting line at the ‘customer service’ desk that’s understaffed and over-grumped? Do you give customers any compensation or even an apology for the inconvenience of having to return a defective product?

Some managers appear to believe that making dissatisfied customers run a gauntlet discourages product returns. Actually, it discourages your customers from returning. If you plan on keeping customers over the long term, you know that sooner or later they’re likely to have a problem. That’s an opportunity for you to demonstrate that you are indeed different from your competitors.

So how did your company do in this quiz? For most organizations, there are at least some opportunities to reduce the hassle factor for customers. The good news is these types of adjustments to customer service are simple. They reduce complexity and bureaucracy.

Our corporate clients report that the payoff is worth it in terms of strengthened customer loyalty, increased spending per customers, and enhanced team spirit. Not bad for simply making the customers’ buying experience hassle-free.

This article is based on the bestselling book, Becoming a Service Icon in 90 Minutes a Month by customer service strategist and certified professional speaker, Jeff Mowatt. To obtain your own copy of his book or to inquire about engaging Jeff for your team, visit www.jeffmowatt.com or call 1-800-JMowatt (566-9288).

By Roxanne Emmerich

4. Run A Tight Ship

Someone’s late for a meeting. Nobody calls the person on it. Next week, three people are late. That’s no coincidence. Eventually, there won’t be a meeting in the entire organization that starts within 15 minutes of the scheduled time. You have checklists required to make sure people are in compliance. Somebody skips it saying, “Gosh, I was busy, so I didn’t do it.” Suddenly nobody is doing checklists and your organization resembles the “friendly zoo.”

What’s wrong? When everybody knows the rules, but you don’t hold each other accountable, organizations naturally become rule-free and loose. If you look at every successful organization, you’ll see groups in which team members respectfully call out other team members whenever service standards are compromised, deadlines are missed, or an honor code is violated. Struggling organizations have folks who just want to be “nice.” They let it all go—which means, of course, that others will let THEM go when they mess up. Now the whole group is letting it all go, and in no time flat, you’re back to blaming the economy.

It is not management’s job alone to call people on their “stuff,” it is the role of every person within the organization. Only by doing so can you have any hope of progression. Repeating yesterday will NOT create different results. Management’s job is to make sure every person is offering constructive feedback and pushing each other to greatness.

5) Love Your Top 100 List—and Let Them Know It

While 80 percent of profits come from the top 20 percent of customers, why wouldn’t you create a rock-solid “contact every month” plan for your top 100 prospective and current customers? Not only will those customers appreciate your constant information sharing, small gifts, and special invitations, they will buy more from you, “sneeze” about you to others, and become evangelists with their friends. What better way to bring in more profitable accounts than to recruit your profitable accounts to be on your “sales team?”

6) Teach Your Employees the Discipline of Winning Behaviors

Do your employees have the disciplines and skills to compete against your toughest competitors? From knowing how to flip a customer from a conversation of price to one of value—your Unique Selling Proposition—and how to cross sell other products discretely and effectively. Winners of the Malcolm Baldridge Quality Award benchmarked that for every dollar invested in training their people, they received a 30-1 return. When one manager remarked that he didn’t train his people because they might leave, he didn’t think of the worse nightmare—what if they aren’t trained… and they stay? Now, that’s a scary thought.

7) Love Your Customers and Show It

Now, more than ever, it’s vital to retain your customers and find new ways to meet their needs. And the number-one way to do this is to show them in tangible and intangible ways that you really care about them. A great way to do this is to organize and launch a “We Love Our Customers” program—it’s fun, it’s easy and it’s also a fantastic way to connect on an emotional level with people. Research proves that customer loyalty can only be created when an emotional connection is established. So make loving customers everyone’s job! Get your team together to brainstorm new ways to show you care. Here are just a few ideas to get you started:

• Have at least three people say, “See you tomorrow.” Or “Thanks for coming today” as each customer leaves, making them feel welcome

• High-five customers when they have a breakthrough like making a buying decision or come to a revelation—customers are people too. They want fun.

• Send notes to clients and call them often.

• Set standards for all customer service touch points and make sure to measure and celebrate results

• Have a few standards that are outrageously better than expected.

Have fun, collaborate, and use your imagination. Love your customers and your community and they will love you back!

And a ‘One More’ Bonus… Understand that the Game Is about Winning Hearts…

…those of your employees and your customers. People buy for emotional reasons, and you must start first by winning over the hearts of your employees. Once your employees believe you are the best and the ONLY choice for your current and prospective customers, they will quickly win over your customers hearts.

Roxanne Emmerich’s Thank God It’s Monday!—How to Create a Workplace You and Your Customers Love climbed to #1 on Amazon’s bestseller list and made the New York Times and Wall Street Journal bestseller lists—all in the first week of its release. Roxanne is renowned for her ability to transform “ho-hum” workplaces into dynamic, results-oriented, “bring-it-on” cultures. Listen to the free 60-second audio with teammates each Monday to clean up the craziness in your workplace and focus on getting massive results. Sign up today at www.ThankGoditsMonday.com. ©MMIV Leadership Press Avenue, LLC. All rights reserved, including translation. No reproduction or duplication, whole or in part, in any form or by any means without written permission from Leadership Press Avenue, LLC. Material provided under license, for internal use only pursuant to the terms and conditions of the license agreement.

By Donna Marrin

Here are the last of six tips that you can use to attract customer loyalty to your business:

clip_image0024. Speaking of free stuff—who doesn’t love free stuff? When you offer free stuff to your customers, your gesture immediately stirs feelings of goodwill and a sense of genuine appreciation for their patronage. What have you been doing to maximize your relationship with your customers, without receiving any monetary payment in return? Again this doesn’t have to be costly. How special do you feel when somebody remembers to mail you a card on your birthday? Your customers will also feel special when they open their mailboxes to find anniversary or birthday or any other celebratory card from you, every year, no strings attached.

Do you maintain a current database of email addresses? If so, use them to circulate useful bulletins filled with helpful tips or trivia—keep them simple, short, and interesting.

Send your best customers, and potential customers, small trial samples of new products or special coupon offers. Send out invitations to a “Customer Appreciation” afternoon, and supply refreshments. There are countless ways to thank your customers for their patronage without having to invest a fortune.

5. Never be afraid to try something a little different, or to take a small, calculated risk. Today’s technology has turned burning a CD or DVD into a simple, inexpensive process. Design a great looking presentation about your product or service and burn it onto disks that can be distributed to prospective customers. Add video clips of testimonials from your best customers. Package it creatively.

Decorate a company vehicle in crazy, eye-catching advertising and park it in a variety of high-traffic areas. When curious people approach to take a look, chat them up while handing out coupons or brochures that will inspire them to want to learn more about your business.

Never underestimate the power of fun. Hold a wacky contest for customers. A carpet company that offers a “Do you have the ugliest carpet in Toronto?” contest will attract attention. Entrants emailing their ugliest carpet photos are eligible to win a Grand Prize, perhaps a large discount on new carpeting with free installation. Upload all entries in your database and update these potential customers with contest results to keep your business top of mind.

clip_image004I’ll never forget reading about the owner of a gas station who trained his friendly old bandana-wearing golden retriever to retrieve payment and deliver change between the customers and the cash desk. People from all over the county admitted to driving out of the way just to buy gas from this particular station, as well as making trips to top up with gas even when it wasn’t necessary, just to be able to interact with this unique animal. Wouldn’t you know it—it’s the only gas station in that area that has never experienced a lull in traffic. Sheer genius. And it costs the owner nothing more than kibble.

6. Make it so easy and so convenient for your customers to use your products or services, they will view your business as a benefit that improves their quality of life. Be sure that any interaction between you and your customers will be the most pleasant of experiences in their already harried day. Make them feel that they will always be on the receiving end of your personal attention because they are genuinely special to you. Believe it or not, superior customer service is far more important to most people than saving a few bucks.

Give an example of the best customer service you have ever received.

Donna Marrin is a freelance Senior Writer/Editor specializing in corporate communications and advertising. She also founded and runs the Markham Village Writers. You can visit their website at www.markhamvillagewriters.com

By Donna Marrin

Use the first of six tips to attract customer loyalty to your business:

1. Get to know everything you can possibly learn about your customers. What are their likes? What are their dislikes? What are their major concerns and how can your products or services resolve them? Ask your customers to participate in helping you make your existing products or services better, as well as developing new ideas. People are happy to purchase goods touched by their contributions.

People like to feel needed. People like to be asked their opinions and they like to talk about themselves. The talk-show industry would have been history a long time ago if this wasn’t so. By asking your customers for input, you are letting them know that you really care what they think and at the same time, you are harnessing a great deal of market research—free. Making your customers feel valued enough to be involved in your business decisions buys you instant brand recognition and loyalty. In return, they will be happy to “spread the word” to friends and associates. You get a domino effect called “viral marketing”—there’s no better way to advertise without having to invest a dime!

clip_image002_thumb.jpgNeed an inventive way of harvesting customer feedback? Try creating your own “Customer Advisory Board.” Plan round-table lunch meetings on a quarterly basis (stick to no more than three or four meetings per year). Choose four or five of your best customers and invite them to become members of “the panel.” Find out what their issues are. Ask them to list all the ways in which your products or services help them solve their issues. What do they need to help improve current solutions? What are you doing that you should continue to do? What should you discontinue? What haven’t you done that you should start doing? When your panel provides the answers, work hard to give them what they want. You can bet that whatever these four or five customers want will mirror the rest of your target market. Replace your customer panel every year with new people to receive fresh ideas. The feedback that you get will be invaluable.

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2. People love a good story. Especially when it’s interesting and informative, even better when no strings are attached. Design a monthly or quarterly newsletter—it doesn’t have to be fancy—and fill it with interesting news and tips that relate to your products or services. Make it information-based, purely for the interest of your customers, but incorporate a section near the end to focus on your company details. Once in a while, include a coupon or an offer that would appeal to them. It doesn’t have to be costly: “Come by on Saturday, May 3rd and share a cup of coffee with us! Balloons for the kids!” The simplest things are often every bit as pleasing to customers.

3. Do your research and do it constantly. Study your competitors. What can you do for your customers that your competitors aren’t doing? What steps have you taken to make your target audience aware of this? If you run a landscaping business, is there one more thing you can do for your customers that not one other landscaper has offered to do? Perhaps the gift of a free window-box container of flowers, fully installed, at the beginning of the season, to every customer?

Make the effort to go one mile further than everyone else. It will be appreciated and remembered.

Visit tomorrow for Part IV of this four-part series, where I’ll share the last of six valuable tips for winning customers and influencing loyalty.

Donna Marrin is a freelance Senior Writer/Editor specializing in corporate communications and advertising. She also founded and runs the Markham Village Writers. You can visit their website at www.markhamvillagewriters.com

By Donna Marrin

clip_image002As illustrated in Dale Carnegie’s Winning Friends and Influencing People, and Robert Fulghum’s All I Really Need To Know, I Learned In Kindergarten, there is a basic formula for dealing with people that guarantees positive results: the degree of effort we invest in relationship-building with potential customers dictates the degree of loyalty they will return. One plus two equals three. The formula comprises one part basic psychology and one part common sense, yet relationship-building is one of the first areas to be neglected when we become consumed with the many other levels of multi-tasking required for running a business.

So many business owners forget the fact that making a sale is a bonus, not the ultimate reward—if you look at the big picture. Winning customer loyalty by ensuring they will want to deal exclusively with your business is a victory well worth capturing.

Consider your own experiences as a customer in the marketplace. What will convince you to choose one particular supplier over all the other similar suppliers out there? When a new competitor appears with a better offer, what action has your favored supplier taken to establish your loyalty? What past examples of customer service have driven you to sing praises about a particular business to your friends and associates?

Think back to those businesses that stand out positively in your mind. What did they do that made them shine?

The methods that these businesses used to attract and capture your interest are the same techniques that you can use to attract customers to your business services or products and engage their loyalty for the long haul.

Human nature is such that all people desire courteous, genuine customer service that works hard to accommodate their needs when and where they decide to spend their hard-earned money. Studies have shown that people are even willing to pay more for a product or service in return for white-glove treatment. Every human being has a need to feel special.

Be creative in your presentation to your customers. Try to think of ideas that your competitors haven’t considered. What unique approaches can you come up with that will make your customers feel truly good about spending their money on your services or products?

Visit tomorrow for Part III of this four-part series, where I’ll share the first of six valuable tips for winning customers and influencing loyalty.

 

Donna Marrin is a freelance Senior Writer/Editor specializing in corporate communications and advertising. She also founded and runs the Markham Village Writers. You can visit their website at www.markhamvillagewriters.com