Are You Mining the Gold from Your Current Customers?
By David Saxby
Customers are gold to your business! They are your lifeblood. Without
customers, we would all be out of business. So if customers are truly the
lifeblood of the business, why do most companies fail to promote customer
loyalty?
When was the last time, as a customer, you received a phone call from a
company asking what you liked about their products or services? When was the
last time a company asked for your feedback on what they could do to improve?
Have you ever received a gift from a company thanking you for being a loyal
customer?
It’s imperative to remember that those who choose to buy products and
services from you have probably selected you from countless competitors. They
chose to spend their money with you and that’s a compliment. These same
customers will tell their friends, family and just about anyone who will
listen about your products and services, if they feel your company cares about
them.
Most companies have a budget, marketing plan and goals for the year. But
does your budget set aside money for customer retention and recognition of
loyal customers? What strategies have you added to your marketing plan to
strengthen the relationship you have with your customers? What goals do you
have to improve the experience your loyal customers receive when they call or
visit your business?
It costs six to eight times as much to attract a new customer as to keep an
existing one. Most business owners agree that a customer can be worth anywhere
from a couple thousand dollars to tens of thousands, or more. Yet most
companies fail to incorporate into their budget the basics for a customer
recognition and retention plan. Why, then, is it so difficult to invest money
to retain your existing customers when they clearly are the lifeblood of any
company?
Here are a few ideas that will help you let your customers know that you do
care, that you do appreciate their business and to solicit their feedback
(remember, they probably have a choice of whether or not they will do business
with you) :
Reward loyalty - Airlines provide frequent-flyer miles. Credit card
companies offer a variety of discounts or prizes while other companies use the
dollar amount or number of visits to reward valued customers. Establish
different gift levels to reward your customers’ years, loyalty or volume of
purchase.
Don’t forget the simple notes! Enclose a short thank you with an
appreciation gift - express your appreciation for their business and their
loyalty. I recently received with my latest health newsletter (I am a
third-year subscriber) a note thanking me for my renewal and a small booklet
with additional tips on how to stay healthy.
Ask for referrals - If your customers are happy with your products or
services and if you have fulfilled all the commitments you made to them and
you have exceeded their expectations, do you think they would refer you to
other people? Of course they would! But how many times a month are you asking
those loyal customers for referrals to others who need what you have to offer?
Probably not nearly enough.
Keep your name in front of your customers - How quickly we all can
forget the names and faces of the people we interact with and purchase from.
Can you remember the last time you received a phone call, note or follow-up
concerning a product or service you bought? Set up an e-mail, direct mail or
newsletter campaign that keeps your name in front of your customers. Keep your
customer base informed about sales, new product development or tips and ideas
on how they can use your products and services more effectively.
Involve your customers - Survey your customers frequently to ask them
what they like or do not like about your products or services and what they
like or do not like
about doing business with you. Ask them what other products and services
they need to see if you are possibly missing an opportunity. There are a
variety of services on the Internet that can make this process easy for both
you and your customers. One Web-based survey tool can be found at
http://www.zoomerang.com.
Customers are human beings. They are no different than you or me. They want
someone to listen to them, to treat them with respect and to show them some
appreciation. Most times, it’s the little things a business does that tells
the customer they are valued.
David Saxby is president of Measure-X, a Phoenix, Ariz.-based measurement,
training and recognition company that specializes in customer service and
sales skills training for utilities. 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.
