Customer Appreciation Can Make You Money
By David Saxby

Think about the various products and services you purchased during the past 30 days. Of all the companies you patronized, how many told you in some fashion how much they appreciated your business? One? Two? Five? Ten?

Unfortunately, the answer is often none!

Next time you're standing in line at a store with several people and waiting to check out, count the number of times customers thank the front-line employee for the products they just purchased. Customers do that, you know. But isn't that backward? Shouldn't the employee be thanking the customer for choosing to do business with that store?

All too often, companies don't make it crystal clear to their employees just how important every customer is to the business. Adding insult to injury, many employers don't teach their employees the skills needed to express appreciation to their customers.

Many companies give little attention to customer appreciation, a habit they can ill afford. Not that long ago, business was great and customer appreciation was not a priority. But times have changed! Consumers are spending less money than they were a few months back. It seems logical that now is the time for customer appreciation to become the top priority.

I can hear you now: "So how do I go about letting my customers know that I do appreciate them? I've never done this before." Following are a few easy steps to get you headed in that direction.

1. Every member of your staff must know what a customer is worth. I'm talking about worth in monetary terms! If your employees understand the long-term dollar value of a customer, they will be more likely to express their appreciation. Most of us understand that it costs more to acquire a new customer than it does to retain an existing one. Educate your employees about the dollar value of both - nabbing that new customer and keeping the existing one coming back.
2. Put in writing your expectations of what should happen with customer interactions. Outline the steps that are required to achieve a consistent level of appreciation with every customer. The proactive expression of customer appreciation can be as easy as a simple "hello." Whether your business is done face-to-face, via the telephone or through the Internet, every customer should feel that they are valued at your company. Strive for the consistent delivery of appreciation! You could lose a customer if just one employee fails with this skill - see Number One above!
3. Empower your staff with the skills to do the job. Showing appreciation is a learned skill. It needs to be taught and then, as with any skill, reinforced numerous times before it becomes habit. Use role playing to demonstrate the proper way to express appreciation. Continue to measure your employees' performance in this area. Hire a mystery shopping company to check for the consistency of the skill. Set up a recognition program to reward those who meet the company's expectations (see Number Two). A small investment in a recognition program is actually a small investment in the long-term value of loyal customers.
4. Create a customer appreciation plan. You probably have a business plan to keep you headed in the right direction. Hopefully, you have a marketing plan to increase sales and attract new customers. What about a customer appreciation plan to reward those loyal customers who choose to do business with you? (Don't ever lose sight of the fact that it is their choice - not yours!) How much money does a typical customer spend with you per month? Let's say, for example, that your average customer spends $50 a month and stays with you five years. Over five years, that customer will have invested approximately $3,000 into your company. How much have you invested to keep that customer doing business with you? Create a customer appreciation plan that is designed to recognize and reward your loyal customers. Set up a frequent buyer program and hold customer appreciation events. Customer appreciation is not a one-time thing! Show your customers how much you care.
5. Designate a customer appreciation ambassador. Identify an employee who truly cares about people, who understands the value of a customer and conveys a helpful, caring attitude toward your clients. Anoint this person with the proud designation of Customer Appreciation Ambassador and make this responsibility part of their job. They must understand that customer appreciation is a priority, not an afterthought.

This ambassador can help you establish a customer appreciation plan which incorporates the following proactive elements:

• Calling your loyal customers to let them know how much you appreciate their business
• Calling new customers to let them know how much you appreciate their choice to do business with you
• Surveying your customers to see what they like and what they don't like about doing business with you

Companies spend a great deal of money every year to attract new customers to their business. These same companies lose customers daily for a variety of reasons - a lack of customer appreciation certainly being one!

We all like to be appreciated. Customer appreciation is vital to the development of a loyal customer base. It's absolutely critical. Don't lose another customer because they think you don't care. Customers are your life blood. Tell your customers every day that you do care about them and appreciate their business. They might just keep coming back!

 

David Saxby is president of Measure-X, a Phoenix, Ariz.-based measurement, training and recognition company that specializes in customer service skills and employee retention. He can be reached at 888-644-5499 or via e-mail at david@measure-x.com. Visit the Measure-X Web site at www.measure-x.com.