Wednesday, 8th September 2010

You DON’T want Satisfied Customers

Posted on 05. Dec, 2009 by JP in Offline Marketing Tips

BusinessWoman2

Talk to many business people about how they approach customer service and the majority of them will say that they are aiming to have satisfied customers.

No! You don’t want that….


What we all should be seeking is to have loyal customers.

Research has shown that 65% of customers say they are satisfied. You may be happy with this but you shouldn’t! Satisfied customers are in a state of nothing – they are neither dissatisfied or happy; they are in between.

They will tolerate you while you are of use to them but if a better deal comes along, they are gone.

On the other hand, loyal customers are your friends. They will be with you through thick and thin. They will be the first to try out you new product. They willing give you honest feedback. They will regularly refer business to you.

This is what you want!

But how can you turn a satisfied customer into a loyal one?

Let Them Decide How to Do Business With You

Today customers are a lot more sophisticated in how they want to do interact with you. If your product or service lends itself to be offered via a number of different means, then it is a great idea to give your customer some options.

Can you deliver face-to-face?

What about telephone services?

Could you make use of SMS texts for quick notes and reminders?

Do you have a web site through which customers can contact you or order online?

Do you use Social Media sites like Twitter or Facebook?

If you provide a variety of delivery channels which are available to suit the customer’s needs then they are more likely to stay with you.

Build a Relationship

Loyalty can only be achieved if you have a true relationship with your customer. Aim to build rapport. Understand who is dealing with you and understand what they are looking for. Keep in regular contact with them.

You don’t necessarily have to be selling something.

Always use their names, especially their first name if you can.

All of this will help in building a base of loyalty. Once you have this, your customers are less likely to walk away.

Generate Staff Loyalty

Question – how can you expect to cultivate a loyal customer if your staff are not loyal to you and your business?

You must have staff who care for the job and will do anything to protect and move the business forward. Customers will be more loyal if they see familiar faces. A business with a high staff turnover will find it much more difficult to build a relationship with their customers.

If you want loyal customers, you must treat your staff well. Reward their successes and recognise their achievements. Hold regular training sessions so they feel they are learning and developing. An established training programme will also make sure that their product knowledge is up to date so they can assist your customers with ease.

Seek Out Complaints

This sounds strange but the average customer has to be encouraged to complain!

Many will keep quiet about poor service but if they can find someone else to do their business with, they will – and they’re gone.

Set up a clear complaints procedure so customers can complain easily and confidentially if they wish.

You must make sure that you provide staff with the tools to effectively deal with customer problems. This includes how to deal with angry customers so that your staff do not take a battering. In most cases, it would be preferable if your staff can, at the first sign of animosity with a customer, refer them to you – the business owner. This may not be possible, but it is very effective.

This strategy does some important things.

The first is, it protects your staff, leading to more staff loyalty.

The second is, it gives the customer the sense that their complaint is being taken so seriously that only the “boss” is important enough to deal with it.

Lastly, as the business owner, you have absolute control over the situation and are able to do what you need to do to solve it. You can tailor the solution to the exact problem. This can be delegated to your staff, but remember that the person who cares most about your business – and the consequences of an irate customer – is you!

If you don’t handle it yourself, make sure you at least follow up on all complaints to ensure that they have been resolved – and if possible, give the customer a quick call or email or text to make sure they think it has been resolved.

Take an Interest

Picture of a question mark

Show your customers that you are interested in their views. Run regular surveys to find out what they think of your service, to find out what you can do differently. You can either carry out a survey over the telephone, or by email or by putting a survey on your website.

Taking the trouble to contact your customers will reinforce the message that you want their custom. But don’t forget to take action on what you find out!

Be a “Can Do” Business

Customers like nothing better than a business which delivers on even the most difficult of requests. “Can Do” businesses will always have loyal customers.

Train your staff to never use words like, “Sorry but, it’s not my fault, it’s company policy”.

Be a business where solutions are always looked for and problems seen as challenges.

Particularly Look After The “Golden” Customers

The old 80/20 is likely to apply to your business where 80% of your sales or profits are likely to come from just 20% of your customers.

Work out who your top 20% are and love them to death!

Why shouldn’t you concentrate on turning the remaining 80% into loyal customers?

Well, the 20% have already shown that they trust, like and respect you. A little more effort with these customers will reap more business than concentrating on the “maybe’s”. By all means, run a programme to convert the “maybe’s” but put more effort into the converted.

So, there you have it. Some ideas and tips on how to build and keep loyal customers. Take a critical look at your business and put a loyalty building programme in place, which will boost sales and profits.

You could also consider some kind of loyalty scheme – even if you’re not a coffee shop!

For example, accommodation providers could give a voucher on check-out for a free “gourmet basket” on arrival for the next booking. The basket could be filled with lovely goodies like champagne and chocolates. Obviously, the items would be purchased wholesale, but the perceived value would be very high.
Champagne and Chocolate Gift Basket

Restaurants could have a “dining” frequent flyer card – when $500 has been spent, a free bottle of wine and a free dessert could be offered on the next booking. Again – it must be perceived as high value – just a free entree for one person at the table is not going to cut it!

There is any number of ways to build loyalty in your customers, you just need to put your thinking cap on.

Oh – and it is always important to remember that your business is there to help your customer, not vice versa!


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