Do You Have A
Long-Term Plan for Customer Loyalty?
By David Saxby
A few months ago, I fired the family dentist
we had used for the last 10 years. Why would I quit doing business with
someone after 10 years? Simple. Our dentist quit caring about us and therein
lies a valuable lesson for utilities that sell products and services above
and beyond power generation.
We used this dentist because he came highly referred for his quality work.
But way beyond that quality, I was amazed and impressed by the level of
patient care he delivered. He did small things that set him apart from many
others and made me feel as if he truly appreciated our business.
For instance, he sent a welcome gift after our first visit. With every
person we referred, we received a small thank-you gift. After every office
visit, he called that evening to see how we were feeling. It should come as
no surprise that he offered a 100 percent satisfaction guarantee. If, for
some reason, we weren’t satisfied with the work he did, he would rectify the
situation at no charge. He was the model of what every business should be.
With the possible exception of his 100 percent guarantee, the many small
things he did to go the extra mile didn’t really cost him a lot of money.
But the message he sent to us with those efforts was invaluable.
But somewhere along the way he developed a “disease” called complacency. It
appears he quit caring about his customers. No longer is his work 100
percent satisfaction guaranteed at no additional charge. No longer does he
call us after an office visit to see how we are doing. No longer does he
thank us for referrals. We no longer felt as if he even valued or
appreciated our business.
I can only presume that he must have forgotten an important aspect of
customer loyalty - creating a long-term plan to keep those customers that he
worked so hard with to create that relationship.
Every year, most utilities set up annual goals and budgets for maintenance,
safety, new construction, labor, equipment and numerous other areas.
Unfortunately, a lot of them fail to create a budget or long-term plan for
strengthening customer loyalty.
Consider these ideas in creating your long-term plan for customer loyalty:
Measure Customer Service
Keeping a pulse on customer satisfaction is not a one-time investment. In
order to know if you are providing a consistent and high quality level of
service, you need to continually ask your customers how are you doing. It is
their perception that matters, not yours.
Create a customer satisfaction survey on your Web site. Allow customers to
share suggestions on ways you can improve your service. Set up a simple
survey that customers can complete at the conclusion of a telephone call.
Wouldn’t it be great to know from their point of view what their experience
was just like? PECO Energy in Philadelphia has established a program in
which each of its call center representatives in their residential and
business sectors is proactively calling 10 customers a month to solicit
their feedback on customer service levels. PECO also conducts regular focus
groups to obtain customer feedback.
Put Customer Feedback to Use
How often do you hear from a customer that they are pleased with your
service? Unfortunately, not often enough. And how often do you hear from a
customer when they are displeased, dissatisfied or even upset? Customer
feedback can be an invaluable tool for recognizing strengths and identifying
opportunities for improvement. It’s important to implement a process where
every customer comment or complaint is addressed immediately.
If the feedback is a compliment, share it with the whole company. It’s not
often that a customer calls to tell a business how much they appreciate
their service. And for those who deal with your customers daily, compliments
come few and far between. So spread the good news. If you receive a
complaint, someone with the authority and skills to solve the problem should
contact the customer to make sure they understand the problem. Then that
person should get going on the solution.
In the last 12 months, I would guess that I have completed more than 50
comment cards for airlines, restaurants, hotels, rental car companies and
retail stores. Some of these had a complaint and some a compliment. I have
not had one company call to either thank me for the positive feedback or to
further understand my dissatisfaction. I’ve often wondered what companies do
with the comment cards. I’m afraid they have been bitten by the same
“disease” as my dentist.
Create a long-term plan to handle unhappy customers and recognize those who
care enough to tell you that you are doing a good job. Either scenario
enhances the groundwork for stronger customer relationships.
Invest In Your Staff
Many companies make a substantial investment in technology every year just
to keep on the cutting edge to provide service to their customers. While
this investment may certainly be necessary, don’t overlook the immense
opportunity to provide good service to your customers through your staff.
Give all your employees the skills they need to create a great customer
service experience with every customer interaction. Give them the skills to
effectively handle customers that are upset, angry or frustrated and, in the
process, turn those people into loyal customers. Skill development is not a
once-a-year investment. Create a long-term plan to provide ongoing skill
development for all your employees on a regular basis.
A long-term plan to continually improve customer loyalty will separate you
from competitors who offer the non-traditional products and services you
wish to sell to boost revenues. Don’t let complacency set in. Your customers
are one of your most valued assets. Remember, every customer counts, every
single time.
-------------------------------------
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.
