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By
John R. Graham and the Staff of Graham Communications
It
wasn't so long ago that customers were fiercely loyal.
Today, they are frighteningly fickle. Driven by what
appears to be nothing less than untamed self-interest,
they do business on a one-way basis. Yet, dangling before
us is the lure of the "customers for life"
carrot.
Companies
of every size run harder and faster, striving to become
110 percent customer-sensitive in order to attain this
illusive level of performance. They make every conceivable
concession and offer every possible value-added service
in order to retain those who do business with them.
But customers still leave.
The
"customers for life" concept is a myth--a
pleasant one to be sure, but a myth nonetheless. It
is what every CEO wants to believe exists.
Yet,
in reality, it is nothing more than a sinister delusion
portraying an unattainable goal. No customer is for
life. Rather, they exist for measurable periods of time--and
even then, customer loyalty is never 100 percent. Whether
they are consumers or purchasing agents, today's buyers
are selective. Gucci shoes are worn by Wal-Mart customers
as well as Nieman-Marcus shoppers.
The
realistic task is to capture the customer under certain
circumstances for a period of time. The goal should
be to build limited loyalty; to have as much of the
customer's attention as realistically possible.
The
concept of limited loyalty opens the door to reaching
attainable, useful goals and meeting achievable expectations.
Here are 27 ways to increase customer loyalty and improve
the prospects of keeping customers longer. Individually,
no listed item is particularly potent. Only when they
are used in significant clusters do they make a noticeable
impact.
The
goal is to implement as many as possible.
- Offer
a guarantee. Every business can offer a desirable
guarantee, one that makes sense to its customers.
By putting its reputation on the line, it separates
itself from their competitors.
- Provide
toll-free telephone access. There are those who continue
to argue that 800 numbers are impersonal, suggesting
that companies are not local. Not today. An 800-telephone
number is simply a way of saying, "We want you
so much, we're willing to make it easy for you to
communicate with us." It's like saying, "Welcome."
- Offer
customer-convenient hours. Convenience is the test
that counts today because time is equally as important
to customers as is price, a principle that has built
the catalog industry. Being open when the customer
wants to do business is critical.
- Provide
automated attendant telephone answering during non-business
hours. Making it possible for the customer to communicate
is essential because a completed call is a finished
act; something that no longer needs to be remembered.
- Publish
home telephone and beeper telephone numbers on business
cards. Knowing that it's possible to get in touch
at night and on weekends provides a high level of
comfort to the customer. If an emergency should arise,
the customer knows that connection is possible.
- Offer
helpful suggestions. Every business has FAQs, or frequently
asked questions. CSRs know all of them. Why not publish
the FAQs and the answers? Not only does it reduce
the number of telephone calls, it makes customers
feel better informed.
- Communicate
regularly. Staying in touch with customers lets them
know you are thinking about them, not taking them
for granted. Send helpful information, not just advertising
material. Customers like to know what you are thinking,
not just what you are selling. The goal is to make
customers want to come closer to your business.
- Say
"thank you" in many ways. A perceptive folk
singer once wrote a delightful song called "Notice
Me." It might well become the theme song for
every business. Saying "thank you" sends
the message that the customer is noticed.
- Be
enthusiastic. A customer could only conclude that
the salesperson enjoyed being in the store. Her upbeat,
positive attitude told the story. She liked the store,
so my wife and I liked it, too. Her enthusiasm rubbed
off on us. Maybe that's why we stayed longer and spent
more there than any place else we went that day.
- Provide
an e-mail address. By itself, an e-mail address may
not be particularly important. At the same time, it
sends a signal that a business is accessible in ways
that make sense to customers.
- Hold
a customer-appreciation day. Most of these events
are, unfortunately, not-so-thinly-veiled gimmicks
created to get customers to come and buy. A genuine
customer-appreciation day should be just that, without
an attempt to make a sale.
- Recognize
your long-term customers. No one wants to be taken
for granted. That is why making an effort to let customers
know you remember them overrides their fear of being
forgotten. It's a way of saying, "we care."
- Make
realistic promises. It's easy to over-promise when
competition is tough, but that only makes the situation
worse. It is far better to be realistic and come through
quicker or at a lower price. The goal is to look better,
not worse.
- Listen
to the customer. Some businesses take this idea much
too literally. Listening to the customer means gaining
helpful information for ways to improve service, but
it means much more. It means listening to the customer--letting
customers talk about what's important to them at a
time which may have nothing to do with what you are
selling.
It means being a good listener.
- Respond
promptly. It seems so simple, yet most of us respond
to calls and requests according to our personal priorities.
As a result, many items fall to the bottom of the
pile. A prompt response means someone cares; a delayed
one tells the opposite story.
- Give
them a surprise. It is easy to forget that every adult
is also a 10-year-old! Kids like surprises. We all
love the "Wow, that's great" feeling. Whether
it's sending a birthday card or sending a note of
congratulations, like surprises for customers are
remembered--and appreciated.
- Make
it easy to do business with you. "But that's
our procedure." These four words are customer
killers. They're barriers that drive customers away
from a business. Call MacMall, the Apple computer
cataloguer, and it take seconds to place an order.
"You'll have it tomorrow." The procedure
is so simple and easy that you want to do it again.
A prompt response means someone cares; a delayed one
tells the opposite story.
- Make
your business look different. Most businesses are
nondescript. Maybe a better word is blah. They're
just there and there's nothing that sets them apart.
They get business because they do an adequate job,
and the owners seem satisfied with the way things
are. This is a prescription for extinction. Make an
effort to look different, from the design of the sign
to the colors you use. RE/MAX, the real estate franchise,
has a brightly colored balloon as its logo instead
of the house most of its colleagues feature. "Me-too"
doesn't make it today.
- Make
on-the-spot decisions. Phrases such as, "I'll
have to get back to you about that," send customers
to a competitor. Other lines to avoid include "Let
me check with..." or "I don't know about
that..." These phrases are designed to deny customers
what they want: a decision. They should be avoided
at all cost. Nothing satisfies customers more than
forthright, on-the-spot decisions.
- Create
fun and excitement. (Consumer Rewards Loyalty Program)
Dull drives customers away. In Atlantic City, Bally's
Park Place is spending $80 million building a "Disneyesque"
gambling area with a Wild West theme and rides. Another
will take on a Hollywood look with movie props. The
way to do more business is to make it fun.
- Introduce
something new. It may be as simple as changing the
decor or the way a store is arranged, or it could
be giving the company newsletter a new look and layout.
A real estate broker redesigned his signs and inquiries
increased.
- Make
invoices simple, clear and easy to read. The invoice
is a company's most important piece of paper--and
the most neglected. Invoices should be designed by
experts in communication. When customers receive invoices,
they should feel they received more than their money's
worth. Hint: The description of what is purchased
should seem bigger than the price charged. Invoices
should be customized to pass the communications test.
- Personalize
all communications. Everything received by a customer
should be fully personalized. No "Dear Customer"
letters. And if the customer's name isn't spelled
correctly, don't send it.
- Show
customers how to save money. Don't wait for the customer
to ask how to cut costs; take the initiative. Be perceived
as pro-active by showing customers ways to save money.
They'll be less likely to bolt to a competitor for
a lower price because they'll know that you are looking
out for them.
- Answer
all telephone calls. In every business, some telephone
calls don't get returned. This can be a big mistake,
even though many are simply salespeople cold calling.
Develop a reputation for talking to people.
- Do
something "extra." There's lots of talk
about value-added. It is a good idea to dramatize
the extras. While printing an order of letterhead,
a printer adds a few hundred sheets personalized with
the company president's name. It's a bonus for doing
business with that printer. Kathy Missell of Infinity
Books in Quincy, MA, sends customers "pre-publication"
copies of books she thinks they will be interested
in.
- Answer
the telephone properly and don't act hurried. Hurried
hurts. "Good Morning, Curry Hardware. May I help
you?" is so much better than "Ajax."
Yet, we hear "Ajax," all the time. Acting
hurried raises the customer's anxiety level and results
in unsatisfactory communication. Because the telephone
is the most vital link between a business and its
customers, it should be used properly.
These
27 tools for increasing customer loyalty may be helpful
individually, but it takes using a number of them at
the same time to make a significant impact. Although
there are many more possibilities for strengthening
customer loyalty, taking action is essential. If you
don't take the steps necessary to capture the customer's
loyalty, you can be sure that a competitor will.
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This
resource is copyright (c) by, and compliments of John
R. Graham, President of Graham Communications, a marketing
services and sales consulting firm.
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