It wasn't so long ago that customers were fiercely loyal. Today, they
are frighteningly fickle. Driven by what appears to be nothing less
than untamed self-interest, they do business on a one-way basis. Yet,
dangling before us is the lure of the "customers for life" carrot.
Companies of every size run harder and faster, striving to become 110
percent customer-sensitive in order to attain this illusive level of
performance. They make every conceivable concession and offer every
possible value-added service in order to retain those who do business
with them. But customers still leave.
Here are 27 ways to increase customer loyalty and improve the prospects
of keeping customers longer. Individually, no listed item is particularly
potent. Only when they are used in significant clusters do they make a
noticeable impact. The goal is to implement as many as possible.
1. Offer a guarantee. Every business can offer a desirable guarantee,
one that makes sense to its customers. A hair transplant clinic guarantees
that each micro-graft will grow for the remainder of the patient's
life. By putting its reputation on the line, it separates itself from
several dozen competitors.
2. Provide toll-free telephone access. There are those who continue to
argue that 800 numbers are impersonal, suggesting that companies are
not local. Not today. An 800 telephone number is simply a way of saying,
"We want you so much, we're willing to make it easy for you to communi-
cate with us." It's like saying, "Welcome."
3. Offer customer-convenient hours. Convenience is the test that counts
today because time is equally as important to customers as is price,
a principle that has built the catalog industry. Being open when the
customer wants to do business is critical.
4. Provide attendant telephone answering during non-business
hours. Making it possible for the customer to communicate is essential
because a completed call is a finished act; something that no longer
needs to be remembered.
5. Publish cellular telephone, e-mail and beeper telephone numbers
on business cards. Knowing that it's possible to get in touch at night and on
weekends provides a high level of comfort to the customer. If an
emergency should arise, the customer knows that connection is
possible.
6. Offer helpful suggestions. Every business has FAQs, or frequently
asked questions. CSRs know all of them. Why not publish the FAQs and
the answers? Not only does it reduce the number of telephone calls, it
makes customers feel better informed.
7. Communicate regularly. Staying in touch with customers lets them
know you are thinking about them, not taking them for granted. Send
helpful information, not just advertising material. Customers like to
know what you are thinking, not just what you are selling. The goal
is to make customers want to come closer to your business.
8. Say "thank you" in many ways. A perceptive folk singer once wrote
a delightful song called "Notice Me." It might well become the theme
song for every business. Saying "thank you" sends the message that
the customer is noticed.
9. Be enthusiastic. A customer should only conclude that the sales-
person enjoyed being in the store. That upbeat, positive attitude tells
the story. Maybe that's why people stay longer and
spend more time in those type of places than in any other.
10. Provide an e-mail address. By itself, an e-mail address may not
be particularly important. At the same time, it sends a signal that
a business is accessible in ways that make sense to customers.
11. Hold a customer-appreciation day. Most of these events are,
unfortunately, not-so-thinly-veiled gimmicks created to get customers
to come and buy. A genuine customer-appreciation day should be just
that, without an attempt to make a sale.
12. Recognize your long-term customers. No one wants to be taken for
granted. That is why making an effort to let customers know you
remember them overrides their fear of being forgotten. It's a way of
saying, "we care."
13. Make realistic promises. It's easy to over-promise when competi-
tion is tough, but that only makes the situation worse. It is far
better to be realistic and come through quicker or at a lower price.
The goal is to look better, not worse.
14. Listen to the customer. Some businesses take this idea much too
literally. Listening to the customer means gaining helpful information
for ways to improve service, but it means much more. It means listen-
ing to the customer--letting customers talk about what's important to
them at a time which may have nothing to do with what you are selling.
It means being a good listener.
15. Respond promptly. It seem so simple, yet most of us respond to
calls and requests according to our personal priorities. As a result,
many items fall to the bottom of the pile. A prompt response means
someone cares; a delayed one tells the opposite story.
16. Give them a surprise. It is easy to forget that every adult is
also a 10-year-old! Kids like surprises. We all love the "Wow, that's
great" feeling. Whether it's sending a birthday card or sending a note
of congratulations, like surprises for customers are remembered--and
appreciated.
17. Make it easy to do business with you. "But that's our procedure."
These four words are customer killers. They're barriers that drive
customers away from a business. Call MacMall, the Apple computer cata-
loguer, and it take seconds to place an order. "You'll have it
tomorrow." The procedure is so simple and easy that you want to do it
again. A prompt response means someone cares; a delayed one tells the
opposite story.
18. Make your business look different. Most businesses are nonde-
script. Maybe a better word is blah. They're just there and there's
nothing that sets them apart. They get business because they do an
adequate job, and the owners seem satisfied with the way things are.
This is a prescription for extinction. Make an effort to look different,
"Me-too" doesn't make it today.
19. Make on-the-spot decisions. Phrases such as, "I'll have to get
back to you about that," send customers to a competitor. Other
lines to avoid include "Let me check with..." or "I don't know about
that..." These phrases are designed to deny customers what they
want: a decision. They should be avoided at all cost. Nothing
satisfies customers more than forthright, on-the-spot decisions.
20. Create fun and excitement. Dull drives customers away. In
Atlantic City, Bally's Park Place is spending $80 million building a
"Disneyesque" gambling area with a Wild West theme and rides.
Another will take on a Hollywood look with movie props. The way to
do more business is to make it fun.
21. Introduce something new. It may be as simple as changing the decor
or the way a store is arranged, or it could be giving the company
newsletter a new look and layout. One of our dealers simply redesigned his
shop price signs and inquiries increased.
22. Make invoices simple, clear and easy to read. The invoice is a
company's most important piece of paper--and the most neglected.
Invoices should be designed by experts in communication. When customers
receive invoices, they should feel they received more than their money's
worth. Hint: The description of what is purchased should seem bigger
than the price charged. Invoices should be customized to pass the
communications test.
23. Personalize all communications. Everything received by a customer
should be fully personalized. No "Dear Customer" letters. And if the
customer's name isn't spelled correctly, don't send it.
24. Show customers how to save money. Don't wait for the customer to
ask how to cut costs; take the initiative. Be perceived as pro-active
by showing customers ways to save money. They'll be less likely to
bolt to a competitor for a lower price because they'll know that you
are looking out for them.
25. Answer all telephone calls. In every business, some telephone
calls don't get returned. This can be a big mistake, even though many
are simply salespeople cold calling. Develop a reputation for talking
to people.
26. Do something "extra." There's lots of talk about value-added. It
is a good idea to dramatize the extras. While printing an order of
letterhead, a printer adds a few hundred sheets personalized with the
company president's name. It's a bonus for doing business with that
printer.
27. Answer the telephone properly and don't act hurried. Hurried hurts.
"Good Morning, JLZ Business Services, this is Jim, how may I help you?" is
so much better than "76.", or "Chevron". Yet, we hear "76" or "Chevron" all day long. Acting
hurried raises the customer's anxiety level and results in
unsatisfactory communication. Because the telephone is the most vital link
between a business and its customers, it should be used properly.
These 27 tools for increasing customer loyalty may be helpful individually,
but it takes using a number of them at the same time to make a
significant impact. Although there are many more possibilities for
strengthening customer loyalty, taking action is essential. If you
don't take the steps necessary to capture the customer's loyalty, you
can be sure that a competitor will.
