Interesting when the economy does well how customers can be
taken for granted with so many customers to choose from,
organizations quickly forget those that placed them in
their current state- customers. Ironically, the cost of
acquisition to keep a client is less costly then trying to
find a new one.
Recent research stipulates that advertising expenses, web
development, television production and other media means
are simply too costly to the bottom line. Yet, rather than
focus on the core, organizations incessantly seek new
clients for business.
Recently, a client recommended a certain vendor to David.
In trying to secure a large print order David immediately
called the vendor, not once but five times. The call was
never returned and the vendor lost a significant six-figure
order. The question for you, "Are you losing business
before your eyes"? Delivering an experience that is
satisfying to customers and differentiated from competitors
drives both repeat visits and improved profitability.
However, poor experiences such as that above enable clients
such as David to test competitors and move freely to
others. Further, in today's competitive and quick paced
world, it is not difficult for someone like David to take
the remote control and switch quickly to the competition.
And if that does not work, they will switch again as
loyalty in today's market runs thin.
Family and Friends Plan
The cost of conducting business is very expensive.
Everything from gasoline to telecommunications is on the
rise. Ironically, maintaining clients costs less than one
third the cost of new client acquisition. Organizations
today fail to adopt the "Family and Friends Plan". One
negative interaction between client and vendor will be
shared amongst family, friends and neighbors. Recently a
real estate professionally securing a million dollar sales
agreement was asked by the same client to find a new home.
Being distant with the client by focusing on new client
acquisition, she not only lost the million- dollar sale but
a 1.2 million dollar purchase by the same client! Friends
and neighbors discovered the issue and now the agent's
sales are down 37%.
It's the little things I do an extensive amount of work
with a print and shipping operation not far from my home
office. Many vendors have opted for my services but I
prefer to go to Frank and Carol. They have a mutual passion
for serving the client. My visits are not about business
but rather interested friends exchanging pleasantries and
getter better acquainted each time. The pair knows the
names of my children their respective birthdays and even my
wife's! That is not just interest, not about friendship- it
is service differentiation. Further, one Sunday evening I
received a telephone call at 9:30 from Frank indicating the
completion of a job. He apologized for a two-day delay and
wanted me to know that the job was not only ready but was
on his tab. That is service with a smile and service that
continues to enable me to return time and time again.
Consistency
Effective operations and service experiences yield to the
bottom line. Consistent execution leads to repeat business
via customer loyalty and lower cost of operation.
Interestingly, and based on doctoral research prior to this
study happy clients, lead to happy employees and happy
employees lead to less attrition on both sides of the
operation.
Three businesses exemplify consistency;
1) Starbuck's always hires excited and passionate baristas.
Their energy and consistency help retain customer loyalty.
It is no wonder that consumers do not mind paying a premium
for coffee. Whether you are in Boise or Baton Rouge, you
the consumer will always be served in a similar fashion.
2) Southwest Airlines decreases the fair of flying by
offering a uniform fee with a passionate and energized
staff. Infrequently does one find a poor experience
traveling on this air carrier, that continues through the
years to continually post a significant profit.
3) McDonald's offers fast, reliable and efficient service
in any city. Employees are constantly willing and ready for
your order. And, while dietary issues have changed during
recent times, this fast food icon continually posts
profitable results.
Albeit each maintains a different demographic and
product/service focus, the differentiation between each and
its competitors is consistency in operation and operational
design. Customers repeatedly experience consistency each
and every time enabling a low cost, high return customer
loyalty program.
Standards for Excellence
A program or rather culture to achieve consistent
experience is difficult and arduous work. The first phase
is to assess critically where you are and where you want to
be. It is imperative to take pen to paper and ask both
customers and employees about their experience with the
organization. Seek trends and spikes in the data. Do not
ask for the why, but what and the how. There exist other
helpful ideas:
1. Make unannounced site visits if multiple locations or
simply watch operations. Use a critical eye here to denote
spikes in mission, vision and values of your organization.
2. Do not look for the obvious. Seek the rationale for the
little items. Ensure calls are answered in two to three
rings. Return calls within an allotted time from, for
example I return all client calls within reason within 90
minutes of receipt. Use thank you cards and remember
client's names.
3. Teach and Coach. Your clients as well as your customers
need the correct operational tools. If you seek
improvements they must be taught, as years of habit do not
immediately change. 4. Standards. Simply put, when change
is needed set standards and stick to them. These include
appearance, dress code, hiring, and client interaction. If
the culture does not exemplify the standards how might
clients remain loyal?
Clearly, globalization, the proliferation of the Internet
and the ease of entrepreneurialism have created a highly
competitive environment. Differentiation, loyalty,
consistency and execution are paramount for the client
experience. It is not conscious effort but the unconscious
sutelties that will help separate your organization, make
you different, maintain client loyalty and keep your
profits.
©2007 All Rights Reserved. Drew Stevens Ph.D.
----------------------------------------------------
Drew Stevens PhD
http://www.gettingtothefinishline.com
Drew Stevens Phd works with organizations to maximize sales
in less time. Drew can assist your organization with sales
or customer service. Order his latest book now, Split
Second Selling available on Amazon.com or at his
website,http://www.gettingtothefinishline.com/products.php
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