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

Building Customer Loyalty... Part III

In building customer loyalty, you have to understand how
relationships work; and like great wine, great relationships get
better with time. Yet remember, credibility and Itrust are built
slowly. You can not rush it. And don't expect miracles. When
dealing with tough and difficult customers, don't expect overnight
results. Customers want you to prove to them that you know
what you are talking about and you understand their business
and problems -- and only then will they listen to you.

Customer loyalty is the practice of finding, attracting, and
retaining your customers who could purchase from you. See,
many think customer loyalty is also customer satisfaction; but
they are not the same thing. When you think of having good
business practices, customer satisfaction is the main requirement
and the entry point. Customer satisfaction is for "all" your
customers. Customer loyalty is for your most valued and
profitable customers.

"An ounce of loyalty is worth a pound of cleverness."
~ Elbert Hubbard

So, what do we do? Have a program. Understand that systems
makes us efficient and responsive to customer wants. Systems
allow us to do the job right the first time.

Now with this in mind, realize that the objective of a loyalty
program is to deepen the customer relationship by offering
relevant rewards and incentives to reinforce the brand, service
or company. A successful loyalty program must consider the
customer's usage behaviour and attitudes toward the product
or service and even the company.

A loyalty program can help differentiate your brand, and
provide customers reasons to stay loyal because there are
rewards they can count on.

Still the question is... does it really work? It's all in the execution.

Hence, before you start giving out those rewards and incentives,
consider the costs of developing your program; and these include
not only discounts but operational expenses as well. Bear in
mind that successful loyalty programs are business and brand
strategies to induce sales.

And just like networking, in loyalty programs, you got to develop
a connection. A deeper connection means greater loyalty and
more customers immune to competitors. And as in networking,
don't simply start and end your link with an "invite". Look out
for each other.

"Complexity and trust go together... the more firms downsize
and outsource, the more they need partnerships, alliances, and
joint ventures." - Peter Keen

Loyalty is about long-term, win-win relationships. It's now a
matter of identifying and developing your most profitable
customers.

Take note...
"Customer loyalty begins with customer satisfaction but
only develops with continuous delivery and care."

Building Customer Loyalty... Part II

"Trust... is the foundation for innovation and coordination of
the supply chain, customer interaction, and market, product
and service development." - Peter Keen

Trust precedes attachment. And so it goes with customer
loyalty. Fulfilling the basic promise of your product is the entry
point to "customer satisfaction".

Nevertheless, nowadays, customer satisfaction only gets you
to play the game, like a buy-in to play in a poker game. This is
simple yet an often overlooked requirement for customer
satisfaction. If a product is to be delivered, it must arrive on
the customer's specified or expected time in "perfect quality"
condition; and most importantly, it must fulfill the benefits
promised by the product or service.

"You achieve customer satisfaction when you sell
merchandise that doesn't come back to a customer who does."
~ Stanley Marcus

Now imagine your customers are delighted enough to tell their
friends about your product or service. That's what actually
happens when we do a real good job for customers, they tell
their family and friends about it. As we know, it's called
"word-of-mouth" advertising, more effective than anything
seen on television. And see, it all starts with "walk the talk".

Does it all end there? Not if you want to end your business.
Hence, realize that it's not enough to satisfy customers -- you
need to find them, attract them, and retain them. That's what
customer loyalty is... "retain" them. Meaning, work for a long
term, win-win customer relationships. Understand that winning
big deals for the day, week or month will neither guarantee a
sustainable competitive advantage nor ensure survival and
long-term growth. At the same time short-term success, in
terms of sales or revenues, market growth rates, market shares
and profitability, are no longer seen as highly significant
marketing efforts.

Overall marketing initiatives are now directed toward
customer retention and loyalty; so it's essential to build a
community of loyal customers, some even unconsciously
behaving as product endorsers for business to thrive and last.

"In business you get what you want by giving other people
what they want." - Alice Foote MacDougall

How far does customer loyalty serve us?
Well, when a customer is loyal, he maybe dissatisfied at one
time yet he will choose to stay on with the business. Loyal
customers are more forgiving of service shortcomings that
they would still choose to purchase your products and avail of
your services -- thus never let your guard down.

Keep working on your products and services while building
on those relationships. Remember, cash registers would only
keep ringing if you give that extra effort... continuously.

Take note...
"Customers can be satisfied but not necessarily loyal.
Satisfaction is just a moment; Loyalty is almost timeless."

Building Customer Loyalty

Once we have built a memorable customer experience, this
customer would certainly want to experience it again. This now
would signal the start of customer loyalty. So, keep trying to
find ways to be on top of the customer's mind... always.

Keep going that extra mile.

Do not charge your customer for the extra service. Your
company can take care of it. Sometimes you would even have to
charge it to your personal account. That is something you would
do to a friend. You just have to think that what you have given
out would come back to you a hundredfold.

"Your employers does not control the sort of service you
render. You control that, and it is the thing that makes or
breaks you." - TLOS

Are customers always right in their requests?
To a certain point -- when the customer's request is related to
business. Just remember, we are here to help him, so apply
flexiblity. This must be resonate throughout the company.

Empower your team to satisfy customer requests on the first
call. Authorize your people to waive annual charges and finance
charge, give a free cake for customers celebrating their
birthday, and offer upgrade to frequent customers. Provide
your reps, agents, or staff a list of what they can offer. On
occasions when a customer is genuinely upset over a service,
have your staff in the front line of your customer service
recovery program.

Aside from offering deep discounts and forking promotional
money to your demanding customers, create value in other
non-monetary ways. Allow them the convenience of having
their problems solved by offering them your time, effort, and
other resources within the company's disposal.

Have your salesperson invest in the one asset which no
psychological gimmicks, incentives or special rewards can
replace... TIME. It's you they want to hear advice and
suggestions from, it's you and your time they want when they
have business, product or service concerns.

However, if the salesperson is not around to serve his
customers, make sure somebody could pick up the slack. You
should have a system for this. Realize that it makes a lot of
difference for the client when another person attends to their
needs in the absence of whom they seek.

Before you can build and maintain a customer’s loyalty, you
have to gain his trust. Doing what you are supposed to do
when you are supposed to do it is the minimum requirement to
provide good customer service.

Take note...
"Time to repair the roof is when the sun is shining." - JFK

Building Customer Experience

If customer is king then there must be something special that
we could do for him, right? Certainly.

For this article, we shall discuss the ways and means to create
that delightful customer experience... a building block to
customer loyalty.

First, see your customers as one of your own, as your family.
This may sound corny or insincere simply because how could
one have an emotional bond with someone he has just seen?
With someone where trust has not been developed yet, with
someone you can not really be yourself with? Attachment
comes with trust. Then it's all about being yourself without
fear of being reprimanded but being understood and supported.

Does this mean that we could just take our customers for
granted? Of course not, why, is that how you treat your
family?

Understand that your family is the reflection of what you really
are. If you put up indifferent faces, it would eventually tell on
you.

If you could treat other people nicely, how much more should
you to your family? After all, you need your family's support
to carry you through tough times but also to help you in your
career. Hence, your family must be an ally in your future plans.
Give them high priority. Give them quality time. And that is
how you should treat your customers as well -- as family,
a family away from home that would help you get ahead.

Now as you connect your customers to family, cultivate notable
times to strengthen the bond, in other words – nurture that
unique customer experience to foster win-win relationships.

See, like family, customers want to feel appreciated. They also
want to get the convenience and comfort of the product or
service they are buying. They need to know they are getting
value for their money. This means, customers perceive value
to be much greater than the cost they paid for the service.

Work on being sought after.

Realize that key to attachment is trust. People like to do
business with people they trust. And many times, customer’s
trust is gained by extending availability outside of the
salesman’s job description.

Thus, do not be surprised or disturbed when a customer calls
for not your business or non-business related assistance.
Instead, consider yourself lucky that you were given their
confidence instead of other salesmen, so much more your
competitors. So, listen and do what you can for them, that
way you grow trust and dependability.

All in all, customer experience is about how customers felt
while doing business with you. The more concerned you were,
the more wonderful the experience. The longer those wonderful
moments were, the more unforgettable they become. The more
unforgettable they are, the stronger the ties you form.

So, why not whenever a customer pays you a visit, don’t just
offer a cup of coffee but a piece of doughnut as well. Ask of his
trip to your office and hook it up with the weather or some
interesting event. Add a little humor then ask how his business
is going.

Subsequently, provide solutions and subtly link your products
or services to it. Remember, don’t be too aggressive in pushing
your products or services. Don’t let him try to finish a glass of
water in one gulp. Slowly does it. Bit by bit. Then you would
have built a memorable customer experience.

Take note...
"Going an extra mile is not just about a smile but an experience."

Customer Is King

Let's go straight to the point here... because the customer is king,
why not take an active interest in your customers' lives?

"Knowing something about your customer is just as important
as knowing everything about your product." - Harvey MacKay

How?

Listen. Well, not just listen but listen to understand. Try to draw
out the customer from his shell. Let him feel positively free to
speak up. When communicating, do not be defensive nor criticize
or comment prematurely; because if you do, you will just put a
barrier in openness. So, try to establish trust by not passing the
buck and always thanking the customer.

See, nowadays, buyers are suspicious and doubtful of your
proposition. They think that you are just after a quick sale or
meeting a monthly sales target.

Yet it is imperative that you must deal with customers for they
also impart you with ideas for product development. And,
customers act like safety gadgets that warns you about your
product's value and relevance as they know your competitors, too.

"If a man is lazy, the rafters sag;
if his hands are idle, the house leaks." - Ecclesiastes 10:18

So, looking a little closer, it's the people more than the features
that will always be the decisive factor in determining who gets
the sale.

To treat your customers as kings...

Develop a restlessness to anticipate your customer's problems and
objectives. Fix things before they break. Anticipate their needs
and get yourself working to find a solution. And when you do see
yourself confronted with a customer problem, convince yourself
that you will have to do it before actually doing setting yourself to
do it. Such an attitude counts big with the customers.

Do not face a customer like how you face other customers.
Instead, recognize a customer as a unique individual with different
tastes, needs and preferences. Do what you can to maximize the
value of personalization; in doing so, you establish friendships and
even build on customer loyalty.

However always remember, it will not make a difference to our
customer if we are nice and warm to them, but we do not do the
job right or take care of their problems.

"Fortunate is the person who has learned that the most certain
way to 'get' is to first 'give' through some sort of useful service."
- The Law Of Success

Indeed, customer is king and no business can survive without
him; so, never treat him as a disturbance to your routine or to
whatever you're doing... but, get out of your way and build that
golden bridge.

Take note...
"Customer Trust is gained by your ability to fulfill the basic promise."