Keeping Customers is as Important as Getting Customers
by Brad Farris
When you get new customers, do you know what happens to them? Are
they thrown into a sea of impolite customer service representatives and
employees? Are they getting the high-quality product or service you
promised them?
New sales are but a small part of a successful business. While new
customers are important, actually critical, to every business, properly
managing and retaining customers form the real backbone of business
success. Everyone, from the sales staff to the front-line customer
service representatives to the CEO, should concern themselves with
customer satisfaction and customer management. All employees, regardless
of their primary job duties, are responsible for promoting and
representing the business. Therefore, employees often are the most
effective, and inexpensive, sales tools.
Failing to properly manage customers and maintain customer
satisfaction extends far beyond the loss of the affected client. Once
they are gone, so too are the people they know -- your potential future
customers.
Maintaining current customers and establishing future customers is
why every business should implement a solid customer management and
retention program. Your program should have the following goals:
1. Maintain customer satisfaction. This is the most important element; all others depend on it. The
inability to satisfy customers quickly results in the loss of a customer
base for a business and soon after that, the loss of the business. First
of all, make sure you have a quality product or service. Next, ensure
your business and employees are easy to deal with and polite. The words,
"thank you," go a long way. Empower your customers and ask them
questions to make sure their needs are met and they are fully satisfied.
After all, dissatisfied customers tell seven to ten people, while
satisfied customers only tell an average of one person. Also, give your
employees a "script" they can use to talk about your product or service.
"When we talk about our service to other people, they want to know these
things..." Case studies show a broad history of a quality product or
service, rather than a laundry list of "we do this, we do that." Stories
are more personal and show the value of your product or service in a
real life context.
2. Resolve customer problems and disputes. No one wants a hassle -- and that goes for your employees as much as
your customers. Implement a system whereby front-line employees can
resolve issues quickly and painlessly. Provide front-line employees with
the ability to make customers happy. Oftentimes, when a situation has to
go to the manager, the manager is often more likely to simply give items
away to get the customer off the phone. Unfortunately, while this may
resolve the situation, it does little to regain customer satisfaction
and trust. Front-line employees, on the other hand, have the necessary
information to put the problem into its proper context and are better
able to appropriately address the issue. Teach employees how to be
active listeners and affirm what's true. At times, it may be necessary
to reset expectations... "I understand your expectation, but some other
customers see it this way..." If a customer simply is unreasonable, or
becomes abusive, it's acceptable to tell them to take their business
elsewhere. However, if this seems to happen too often, it may be a sign
your product and service are in need of rehabilitation.
3. Keep 'em coming back.
Stay in contact with your customers so you can ask for a reorder and
renew the value of your product. Sometimes, it becomes necessary to
resell your product or service, and remind them why they came to you in
the first place. "When we first talked, you told me ... Is that still
true? Did we deliver on that? What's important now?" Reorders are much
more profitable than new business since there is no customer acquisition
cost. You might even have some leverage to offer a discount.
4. Ask for referrals.
Referrals are a business owner's best friend and perhaps the best
affirmation of customer satisfaction. When the opportunity presents
itself, ask customers for referrals. And when possible, put current
customers and future prospects (and referral partners) in a room
together, such as at a holiday party or a sporting event. Simply buying
lunch for a group of customers so they can talk about your service or
product is an excellent way to expand your business as well. It's
actually a pretty small world when you're willing to venture into it,
and referrals make it even smaller and more manageable. Incentives for
referrals offer a progressive business strategy. While monetary rewards
such as referral fees can be effective, they also impact your bottom
line. Consider non-monetary rewards such as additional products or
services you offer.
The importance of management is nothing new to business. However, the
art of managing your customers, in addition to your employees, often is
overlooked. Effective customer management and retention are vital to a
successful and profitable business. Keep your eyes open for future
customers but don't forget your current customers -- loyalty is often
rewarded.
Brad Farris is a principal at Anchor Advisors. His
advisory experience includes leading businesses into growth,
reengineering business systems and processes to accommodate change,
preparing startups for future growth, and restructuring businesses that
needed to change to survive. Contact him at
BLFarris@AnchorAdvisors.com
or visit
www.AnchorAdvisors.com.
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