Customer Loyalty... Satisfaction has its Rewards
by Liz SchmidtSome of the most often-heard business buzzwords in the 90’s were customer service, relationship marketing, and database marketing. In all these concepts “the customer is number one.” Has your company done all it can to keep your customers coming back for more?
Why Customer Satisfaction is King
You’ve probably heard or read these statistics, but since repetition helps etch things in our brains I’m going to give them to you again. And though some of the numbers are a bit old (1990) I think that if the studies were done today the message would be even stronger.
• The typical company gets 65% of its business from its existing customers.
• It costs 5 times more to find a new customer than to keep an existing customer happy.
• It takes 12 good service experiences to overcome a single bad one.
• 7 of 10 customers who switch to the competition do so because of poor service.
• 91% of unhappy customers won’t buy again from the company that displeased them.
• And not only will they defect, they will grumble to 9 of their friends.
Scary, huh? But don’t panic–there are two more facts and they're good news...If a customer rates you a five on a scale of one to five, they are six times more likely to return than if they rate you as a four.
Dissatisfied customers whose complaints are taken care of are very likely to remain loyal, and often become “customer advocates” if you go out of your way to fix their problem. By the way–the most common reasons customers complain are: 1) they are confused or overwhelmed, 2) they feel ignored, 3) they are defending their ego, 4) they were treated poorly in the past, or 5) they waited an extended period of time for service.
How to keep ‘em happy
The golden rule goes a long way when it comes to providing great customer service. So when dealing with customers or designing service procedures always ask yourself how you would like to be treated. And to get your creative brain in gear, here are a few specific ways to let your customers know you care.I. Develop a customer database and use it. Give employees easy access to customer and prospect information so they can treat them like part of the family. Surprise your best customers occasionally with a note of thanks, an appropriate gift, or a discount certificate. Use your database to keep in touch (see below).
II. Start a customer loyalty program. You probably belong to a few “frequent buyer clubs.” Small businesses are in a great position to implement this type of program because you can find out fairly easily what will motivate customers to return... special privileges (free gift wrap, validated parking, express service); special discounts, rebates, or freebies (the 10th carwash is free); or gifts for collecting enough “points.” Just be sure to make it easy to participate in your program, and not too difficult to earn the rewards.
III. Keep in touch. Watch for information that might be of use to your customers, and when you find something, mail copies to them individually or publish it in a newsletter. Send postcards to acknowledge an order, shipment, or return; to thank them; to present a special offer; or just to say “Happy Groundhog’s Day.” Let customers know about upcoming product changes and additions, and consider offering them “early bird” discounts or specially priced bundles. In all your communication be sure to let your customers know that you are contacting them because you value their patronage.
IV. Solicit feedback. An astonishing 96% of unhappy customers never complain! So to find problems you usually have to do some detective work. Ask first time customers to complete a satisfaction survey, either at the time of the sale or a couple days later by mail or phone. Also survey repeat customers from time to time so they know you still care about their satisfaction. If any negative experiences show up do your best to correct the situation. If a customer praises your company ask if you can quote them in your marketing literature.
V. Ask customers for help. Collaboration builds relationships, so solicit customers’ ideas for improved or extended product lines and services. If you publish a newsletter show photos of customers receiving “Customer Innovation Awards.” Also, ask their help in evaluating new products and services by giving them free samples.
Sources: Bill Seltzer, EVP & CIO, Office Depot
India Rayl, Entrepreneur Magazine, 1995
Small Business Success, Vol. III, 1990 White House Office of Consumer Affairs
Also see:
Think small/WIN BIG... why and how to market to small businesses
Customer Loyalty... Satisfaction has its Rewards
Headlines... Your Very Important First Impression
The information presented on this website is intended to be accurate and authoritative information on the subject matter covered. It is distributed with the understanding that Intelligraphics is not rendering professional advice and assumes no liability whatsoever in connection with its use. © Intelligraphics, 2000-2006. 949-586-8372
copywriting graphic design website development logo design website marketing small business results-oriented marketing
