Keeping Customers For Life... Part II

"When you are skinning your customers, you should leave
some skin on to grow so that you can skin them again."
- Nikita Khrushchev

This was quoted by the Observer (London) when Khrushchev
addressed British businessmen. Well, it may sound a bit harsh
specially for those who are racist but in a positive sense, it's
actually true. Look, we want to keep customers for life; but,
how could they keep coming back to us if we drain them?
Hence, we got to take care of our customers... sincerely. Let
them feel valued while continuously improving on our products.

Redesign, reshape and re-engineer product offerings, services,
and messages to individual customers. Design market offerings,
services, and prices that have more emphasis on customer
retention to rebuild a longer customer lifetime value.

Reduce the rate of customer defection by hiring only
knowledgeable and well-trained employees, if not those with
high learning ability and enthusiasm. Deliver total customer
satisfaction through better and faster services than
competition.

Enhance customer bonding by way of (a) frequency and
rewards program to customers who buy more often and in
substantial amounts and (b) individualizing and personalizing
customer relationships, turning customers into clients.

Build profitable customers through "share of wallet", cross
selling and up-selling... then you could capture a substantial
share of your customer's expense budget.

"If you love your customer to death, you can't go wrong."
- Graham Day

Provide special treatment to your most valued customers.
Treat them like they are the only customers alive on earth,
send them personalized birthday or wedding anniversary
greetings, small gift tokens, or invitations to special events,
concerts or shows.

Yet realize that looking after your customers is more than
satisfying them or filling their hearts -- it's helping them grow
their business. That is what "skinning and leaving some skin"
is all about!

Take a bank for example. Safekeeping is not the only reason
why people deposit their money but interests and other
financial services. See, they help each other. A bank grows
from its client's money and at the same time, so does the client
from the bank's expertise.

More so, at a different setting, once you have successfully built
that win-win relationship, it would be more easier and natural
to seek your customer's help and support in the design of new
products or in improving total customer service.

Lastly, again, customer satisfaction is for all your customers
but customer loyalty is for your most profitable and valuable
customers; so learn to identify and build on them.

Take note...
"Markets are not created by God, nature, or by economic
forces, but by businessmen." - Peter Drucker

Keeping Customers For Life...

In our previous articles, we talked about customer loyalty; and
for this one, we would continue to dig deeper into the world of
customers.

As we all know, trust is key in building and maintaining customer
loyalty; yet, would there now be room for complacency once trust
has been "firmly" established?

Wait. Established? Is there such a word? See, complacency is
never even a thought for those who wish enduring success. If
you allow such, you would certainly lose ground.

"There's no resting place for an enterprise in a competitive
economy." - Alfred P. Sloan, Jr.

Great business leaders never rest on their laurels. They think
continuously on finding ways to delight customers. They work
harder to build customer lifetime value.

Oh, what is this customer lifetime value again? It is a measure
of the value of a customer to your business. It is the potential
contribution of the customer to your business over a period of
time. It is the "answer" to the question of how much a customer
would spend for your product or service in the course of a life
time.

"He says, 'when I see a frown on a customer's face, I see
$50,000 about to walk out the door.' His good customers buy
about $100 worth of groceries a week. Over ten years, that
adds up roughly $50,000. We all agree that repeat trade is
the key to business success." - Tom Peters

Hence, when confronted with a difficult customer and you need
to be motivated, think about all the money that he could spend
with you in the course of a lifetime.

Remember, some customers can be difficult. They maybe
unhappy at something specific. Others maybe unsatisfied with
nearly everything. So, here then are some guidelines for dealing
with difficult customers...

• Do be clear, specific, and straight to the point.
• Do be prepared and organized. Anticipate and be proactive in answering inquiries.
• Do stick to business. Demanding customers are not interested in small talks.
• Do ask specific questions, i.e. "May I know what exactly is the problem with your Senior Citizens' Purchase Card, sir/ma'am?"
• Do provide a choice of options.
• Don't ramble, theorize, or engage in small talk. Get to the point.
• Don't be disorganized. Demanding customers don't have patience for incompetence.
• Don't leave any loose ends. Present to demanding customers an outright solution to their problems.
• Don't ignore the customer's presence or his anger.
• Don't put the blame on the customer or shift the blame to another office.
• Don't refer him to other offices without listening to and determining the problem which can be solved by your office.

As for angry customers...

• Recognize the presence of the customer by greeting him and making him feel comfortable.
• Listen attentively. Do not interrupt him while he is talking.
• Paraphrase the customer's concern to ensure proper understanding of the problem.
• Emphatize with the customer by saying, "I understand how you feel" or, "I can see your point."
• Offer to help, "How may I help you?"
• If the solution recommended by the customer is not possible, offer alternatives.
• If the solution is acceptable, apologize for the inconvenience of the customer.
• Keep your cool.

Take note...
"There is only one boss: the customer. And he can fire everybody
in the company, from chairman on down, simply by spending
his money somewhere else." - Sam Walton