Are You Mining the
Gold from Your Current Customers?
By David Saxby
Customers are gold to your utility company. 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 utilities fail to promote
customer loyalty even as they attempt to broaden their revenue base with
other services such as cable TV, Internet access and high-speed data
services?
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 your new service
offerings probably selected you from competing companies. 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 utility 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
you?
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 beyond basic utility service):
Welcome customer complaints – Customers will complain when they’re
dissatisfied with some part of your service. Train your staff to welcome
customer complaints. Provide them with the tools and skills to resolve
customer problems. Empower your employees to handle customer complaints on
the spot. Identify the most common issues your customers complain about.
Determine what can be done to create solutions to problems that happen over
and over again and upset your customers. Poor customer service experiences
travel quickly and prospective customers may consider other providers for
their cable, cell phone and Internet needs.
Promote your services – If you polled 10 of your customers right now,
how many would say they are aware that you offer additional services and
products? Create a quarterly newsletter and include it with your customers’
bills. Use it to promote your services. More customers embrace technology
every day, so also use your Web site to promote your services and provide
information about them. Let customers know how they can benefit from using
those services.
Ask your customers – How would that new customer that has chosen your
company as their service provider rate their experience with the employee
who took the order, with the technician who set up the service? Send each
one of your new customers a welcome letter and include a survey card. Ask
them to rate their experience with your utility. Ask them what your company
could do differently to improve their experience as a customer.
Recommend solutions – If my cellular, Internet, telephone or cable TV
company called today and recommended a plan or program that would reduce the
cost of my service or make it easier for me to do business with their
company, I would be impressed. Anybody would be delighted with that news.
Train your staff to recommend an energy audit if a customer calls
complaining because they’re experiencing a significant increase in their
monthly bill. Through your newsletter and Web site, offer tips on how
customers can reduce their electric bills. Suggest budget billing to help
customers manage the summer and winter peak bills. Promote automatic and
online payments to all customers who call or walk into your office. Let
customers know about the tools you offer on your Web site that make it easy
for them to review their account and communicate with your company.
Establish companywide knowledge – Does everyone in the company know
what services you offer? Does the lineman or the meter reader know how
budget billing and online payments work? A wide range of people from your
utility come in contact with customers. Educate all of your employees on
your products and services, including pricing and benefits.
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 tell
the customer they are valued.
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David Saxby is president of Measure-X, a Phoenix,
Ariz.-based measurement, training and recognition company that specializes in
customer service and sales skill training for utility companies. 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.
