“Loyalty does not come automatically with each sale. Its origin is in treating the Customer with respect – to show you really care. Then it is generated in the human heart – the center of self-respect & human dignity. It is a force which leaps into being – only when conditions are exactly right for it-and it is a force very sensitive to betrayal.” – Maurice Franks, Professor at a Business Law School
Customers Topics: Cost, Loyalty, Change, Rewards, Communication, Offers, Problem Resolution, Excessive Turn-over
A, It’s Costly. Did you know it costs 10x more to acquire new Customers than it does to keep current ones? Or that reducing Customer “turnover” by 5%, can increase profits 25-135%. That’s a lot of $$$. Here’s what you need to know to turn customer attrition into customer loyalty. Once someone buys from you, how much attention do you pay them?
B1) Customer Loyalty. What can I do to create an on-going “commitment”, rather than fleeting “satisfaction”, the answer had better be “a lot.” Neglected, annoyed or unhappy customers will likely not purchase from your company again, leaving you always hunting for new customers (which are 10x more expensive to sell to). But thanks to the Internet, you also have Social Media to contend with. When a customer is unhappy, they will likely spread the word via Social Media or other reviews – like Yelp.
B2) Customer Loyalty pays off in more than dollars. Working with existing customers is easier. And loyal customers will do some of your Marketing for you in the form of Referrals and positive online reviews. So how do you know when your customers are or will be unhappy, disengaged or otherwise dissatisfied? These seven signs will point the way.
1. Customer Communication Patterns Have Changed
Newsletter & Marketing Email reading rates have dropped significantly. The growth in your number of Twitter followers has slowed to a crawl. The click-rate for your Digital Ads has dropped off. All of these are signs that customers are disengaging from your brand.
Ask them: “What’s going on? You should be gathering Customers Feedback on every step of the Customer Journey, from initial Marketing to post-sales Support, If you’re not, start now !!! Then make sure to include Survey Questions that gauge where your customers are at right now. Have they stopped using a particular Social Media platform? Is their business growing so quickly they no longer have time to open Marketing Emails? Don’t just guess at what your customers are going through – ask them directly.
2. You’re making Blind Offers, instead of Targeted.
Selling to existing customers is smart business, but do so thoughtfully. Blindly throwing your products & services at them won’t get you very far. Survey your customers frequently (3 mo could be ideal) to get a real-time understanding of their needs, so you can make Targeted Offers to them. Gathering customer feedback and incorporating the results into your decision-making will help promote engagement, satisfaction & loyalty over time.
3. What Customers want is NOT what they’re getting
Find out what drives your customers. If you are touting low prices, but your customers are primarily concerned with service, you’re not meeting your customers where they are. What worked yesterday might not work today because customers’ lives – and therefore needs – change over time. Gather real-time Customer Feedback to make sure your offerings and your Marketing align with what your customers are actually looking for.
4. You’ve stopped Rewarding Loyalty.
It’s a common (& smart) practice to offer new Customers some kind of incentive to buy from your company. But go too far with this and you risk annoying your “existing” Customers. Existing customers are – by far – the most valuable to your bottom line. Remember acquiring new customers costs 10x more than satisfying & retaining current customers. Make sure you have a Loyalty Rewards program in place right alongside your New-Customer Rewards program. When your current customers feel valued, they will pre- pay if you ask (better Cash Flow) and re-pay you with customer loyalty.
5. Problem Resolution is a Problem
How is your company’s Customer Service working for your customers? If you’re not sure, ask them. It doesn’t matter much if your customers like your products & services, if they are having a terrible experience with your Customer Service. And likely, they’re telling all their friends about it as well.
Train your Customer Service team to make sure customers’ needs are getting taken care of promptly, efficiently and with a positive attitude. Gather employee feedback as well to find out where there may be gaps in your processes.
6. Your Employees Have Dis-engaged
Your employees’ happiness has a direct correlation to their Customer Satisfaction. Ensure your employees are engaged and committed to making improvements – by taking their pulse through regular Employee Surveys, then addressing any negative trends you see in the data. The problem might merely be a Training issue that can be solved by offering a class to employees, or the problem might be bigger than that..
7. Your Company has Experienced Excessive Turnover
You might not think the inner workings of your company or organization have much of an impact on your company’s success, because customers buy from you, because they like your products or services. This is a dangerous mode of thinking.
Customers remain loyal to your brand because they “like” your people. When customers are accustomed to engaging with particular employees, it can hurt the customer experience when they are suddenly dealing with new people. When at all possible, have a transition plan in place that includes introducing customers to their new employee contacts.
Conclusion: Customer attrition & loyalty don’t have to be left to chance. If you look for the warning signs outlined above, you will prevent turnover and greatly enhance customer stickiness and loyalty.
Comments: In what other ways can you detect & prevent Customers dis-satisfaction and have total satisfaction?
from Questback.com 27 May 15 enhanced by Peter/CEO Wiz4.biz