An article on customer retention and customer service by Patricia Fripp, CSP, CPAE
Today's consumers can sometimes look like a threatening
mob. They're often unhappy, make vague or irrational
demands, and can rush in unexpected directions that strongly
affect our livelihoods. They may suddenly take their
business elsewhere or bombard us with time-consuming,
expensive complaints. Even both.
"These people are manipulating the marketplace through
pressure, protest, and politics," says futurist Faith
Popcorn who coined the term "vigilante consumers."
Why have our customers become so volatile and unpredictable?
The answer is simple. In the old days, conventional
marketing divided prospective consumers into two categories,
the classes and the masses. If you're selling $100,000 cars
you appeal to the classes, and if you you're selling
Hyundai's, you appeal to the masses.
Then along came retailers like Walmart who combined good
buys with good customer service. "Now the masses know
class," says Popcorn. But these vigilante consumers are
rarely as dangerous as they sound. Their wants are simple:
just value, service, convenience, choice, and lots of
attention.
Impossible, you say? Quite the contrary. This is a great
time to be alive and in business. Armed with facts, drive,
and an open mind, we can begin planning strategies that will
bring us challenge, fun--and profit.
1. FIND OUT WHAT YOUR CUSTOMERS REALLY WANT.
In a shuttle bus taking me to the airport after a speaking
engagement, I began schmoozing with the driver. (I'm always
looking for new material.) Knowing his service was not
affiliated with any of the resorts, I asked if the guests he
drove told him about their experiences at the various
hotels. "Yes," he said. "In fact, the general manager of the
property where you were staying brings a big box of donuts
and has coffee with our drivers once a month. We not only
tell him everything we hear about his property, we tell him
everything we hear about his competitors."
How many businesses have spent a fortune with research firms
to find out what this resourceful general manager gets for a
box of donuts and an hour's conversation every month!
The most frequently overlooked low-tech customer survey
method is to talk to someone who talks to your customers and
has no vested interest in their opinions. But this doesn't
mean you don't also interview them formally.
The Ritz-Carlton Hotels, famous for customer service,
conduct regular formal surveys with cards in the rooms and
mailings. When I was speaking on the same program with their
former president, Horst Schulze, an audience member asked,
"Why don't you offer a 'frequent guest' program?" (Such
programs are a major investment of organizational time and
philosophical strategy.) Schulze replied, "We don't because
only two percent of our customers have asked for them. What
our customers do want is to have a bowl of fresh fruit in
their room when they check in." When you know what your
customers really want, it is rarely difficult or expensive
to make them feel special. Schulze was doing exactly right.
My friend David Garfinkel, a copy writing genius, says there
are five important answers you need to get from your
customers, directly or indirectly.
- What do you like about buying from us?
- Why did you buy from us in the first place?
- What problems did you have before you bought from us?
- How did we help you solve those problems?
- How are things better for you now?
"That last answer," he says, "is very important. It's what a
positive result looks like to a real customer, and it's
going to look the same to your other customers and prospects
when you tell them about it."
2. MAKE YOUR CUSTOMERS FEEL SPECIAL AND APPRECIATED.
Great customer service is no longer good enough. We have to
exceed the vigilante consumers' expectations. One individual
who knew this before anyone else is Gary Richter. He runs a
small boutique bank in Naples, Florida. At 5:20 one Friday
afternoon, the bank received a call from an elderly woman
who needed to cash a $200 check. The bank closed at 5:30,
and she was 20 minutes away. Many of us would say, "Of
course, please come over, we'll stay open for you." But
Gary's bank believes in giving exceptional service. One of
their employees delivered her $200 on his way home and
picked up her endorsed check.
It turned out that the woman had her extensive financial
holdings at a large national bank. After this positive
experience with Gary's bank, she moved all her assets and
investments to his bank.
Gary's bank continues to focus on superior customer service.
"I tell my employees, if we roll out the red carpet for a
billionaire, they won't even notice. If we role it out for
millionaires, they expect it. If we roll out the red carpet
for thousandaires, they appreciate it. And if we roll out
the red carpet for hundredaires, they tell everybody they
know." And you can take that to the bank. In the first six
years since the bank opened, it grew from 16 to 180
employees and from $6 million in assets to $330 million.
3. BUILD RELATIONSHIPS WITH YOUR CUSTOMERS.
There are really only two types of customers: those who
already know and love you and those who never heard of you.
All businesses spend money trying to get new customers, but
money spent keeping current customers does double duty.
Pamper them, keep in touch with them, acknowledge their
needs. It's cheaper and more effective than getting new
ones. Remember, an unhappy former customer will talk about
you and cost you business. A happy current customer will
talk about you and get you new business. People want to do
business with people who appreciate them and look out for
them.
No one ever lost customers by treating them with
appreciation, consideration, and integrity. It is NOT your
customer's job to know how you can serve them. It is our job
to give them options and choices.
(1,003 Words) |
