It’s a good article written by Dean van Leeuwen that I believe gets us to delve deeper into the real world use of the term – customer loyalty. Loyalty is what I think you should always strive for. But in the mind of the customer, like Dean says, they are not going to fall for glossy ads and empty promises. They’ve been let down too many times. They want companies to back up what they promise.

The comment I made is posted below……. What are your thoughts on this?

The title certainly caught my eye and I was ready to completely disagree with you. After reading the rest, I think you’ve hit the nail on the head. I believe you are dissecting the word “Loyalty” to nuances we generally gloss over.

My thought is that companies hope for loyalty, but ultimately to break it down – they are hoping for repeat business from their existing customers time and time again. Your point about customers never looking to find a business they can be loyal to is correct. I think that customers are looking for a “go to resource” for that particular need. The way to do that is to create a truly unique experience. You build unique experiences by tapping into the feelings of the customers and thus, building relationships that continue over time.

The key here is to constantly be talking and engaging with the customers. As you so eloquently pointed out, they are not falling for empty promises or glossy ad campaigns. Studies show that 80% of companies think they are delivering good service and making good on their promises, but only 8% of their customers agree. To that point, as you said “companies are now being forced to build genuine and mutually beneficial relationships with their customers” – that is the crux of successful sustainability.

Based on human nature, people remain loyal to those they have positive relationships with, be it family or best friends. As consumers, we absolutely want to have one resource that is based on a positive relationship – one where the customer is appreciated for the dollars it brings to the business, and the customer values the efforts being made by the business by trying to solve their problems and create an environment and experience that draws the customers back.

With my clients, the first thing I tell them is that it is not their product or service that their customers are buying. It is the relationship that is being bought. The relationship based on the promises that the company makes and their willingness and ability to fulfill those promises, wrapped up in a package catered to the preferences of that customer.

So, that being said – I think you are dissecting the word loyalty to one that many have not done before. Loyalty on the part of consumers cannot be expected. The repeat business is what the company is wanting and they must do everything in their power to make their customers want to go out of their way to do business with them.

Very thought provoking post! Keep them coming!

Customer service is connecting the person with the product.  It’s about making sure that clients know that we value their business, even if they have not yet had a business transaction with us.

Often I will have a conversation with a friend, a colleague, or a client and the name of a new prospective client comes up.  Then, occasionally, the person with whom I am speaking will say “Oh man, I forgot to follow up with them.  I should get right on that!”  Unfortunately, if the need was immediate in the potential customer’s mind, the damage has already been done.  They are already doing business with the competition.

Because they didn’t act with a sense of urgency on behalf of the potential client, they moved on to one of your competitors who did.  I can’t state that I’ve not done the very same thing myself.  I was once approached for a potential speaking engagement on Customer Service and I failed to understand that the client had already decided she was going to hire me to speak at her association and had the specific topic in mind.  Because I had planned to follow up with her within two weeks of meeting her and give her enough time to settle on her desired topic, I gave her the impression that her engagement was not important to me and she booked another speaker.

Two things happened here that you should learn from – while you may pride yourself on being very perceptive to people’s needs and requests (as I usually do), you may sometimes miss the mark and lose that sale.  You also should learn that it is very important to make a connection, however brief, with the potential client to let them know that you are glad to have met them and would like to serve as a solution provider for whatever their need is.

Customer Contact Follow Up

The initial follow up contact can take many forms depending on the situation involved – a phone call or email will establish the initial contact information and to let them know how you may fill their needs.  Mention the part of the initial meeting that made you think that you may be able to serve them.  Let them know how they’d benefit from your services and what it is about the way that you do business that is unique from the rest of your competitors.

Take a quick look right now in your stack of business cards that you have recently connected with.  If you think that you could be a resource to them in any way, make sure to follow up with them before your competitor does.  Whether it is by a personal phone call or an email, by all means – MAKE THAT INITIAL FOLLOW UP CONTACT TO YOUR POTENTIAL CLIENT. Let them determine the sense of urgency and set the pace for the rest of the process.  At least you have let them know that you value their potential business and will act expediently. Loyal customers will remember your diligence with service throughout the entire customer experience.

Gazelle Sports

Last weekend, I ran a 5K and it was very apparent that I needed new running shoes. Being that I’m not an expert runner (except in my own mind), I usually go to a department store, try on a few shoes, and buy a pair at a reasonable price.

This time, I took the advice of one of my running buddies and headed to Gazelle Sports in Grand Rapids, MI.  The customer service experience that I had was truly a Zappos.com experience, but in the “real world.”  The customer service skills of the staff were superb and they connected with me on a personal level that engaged me as a customer, not just processed me through their system.

The Positive Customer Experience Engaged Me Immediately

I entered and we immediately greeted by two people who directed me to where the running shoes are.  Josh then found me looking at a variety of shoes and offered his assistance.  He listened to my concerns about my feet, special arch support needs, and had me take my shoes off and watched me walk around for a few minutes to see how my feet actually moved in action.  He brought me four pairs of shoes to try on and explained the benefits of each pair.

He also spent a great deal of time speaking with me about my running the race that morning, the pain I have in my IT band, my plans to run a 1/2 Marathon in the fall, and finding a training schedule for me.

Now, like Zappos, Gazelle does not typically sell discount shoes and has sales infrequently.  That being said, the benefits they offer far outweigh the higher sticker price.  At least three times during the trying on phase, Jose reminded me that I could run with the shoes for a few weeks, and if they did not feel “just right” I could exchange them for a different pair that would work for me.

I left the store with a new pair of running shoes, a sense of excitement for my next run, and an appreciation of a good customer experience and the knowledge that excellent customer service skills are not lost on those companies that truly value their customers.

The Final Touch

This post could end there, but they took it one step further.  Yesterday in the mail, I received a handwritten Thank You note from Josh.  He thanked me for letting him help me, hoped that my new shoes fit me well, reminded me to stretch like we spoke about, and wished me luck in my training.  This Thank You note connected the final “Dot” on the Customer Service Skills.  It further deepened the good feeling that I had by doing business with them in the first place.

So the answer to the title of this post is – NO, Thank You notes are not silly. I’ve not met a person yet who was not thrilled to get the Thank You note that they considered to be the icing on the cake of the customer service experience.

The first thing that people have said when I tell them I bought my shoes as Gazelle is “Aren’t they a little pricey?” I say that they really are competitive for “real” running shoes and that the level of service that they give convinces me not to try on 10 different pairs of shoes in a department store, left on my own to wonder if these shoes are good for my feet, and with the anxiety that I will be stuck with these shoes if I run outside and discover that I can’t actually run in them.  The customer service experience has been well thought out by their leadership team and they have developed that loyal customer base that all companies strive to achieve.

The newsletter publication arrived today and the article spanned the both the inside and back covers.  It is a very professional publication and quite well respected.  However, when I noticed my byline, my name was correct, but the company name was incorrect.  I own Centric Strategies.  The company name listed was similar, but not that.  Also, there was no website address, phone number, or email address provided for contact information. So, not only was there no way for people to contact me for my services, they couldn’t even look me up by the company name.

I do have an excellent working relationship with this insurance carrier and wanted to see how this could be fixed.  I’ve been receiving more requests for coaching lately and wanted potential clients to have a way to contact me.  I contacted my client and asked her if she had seen the actual newsletter.  She pulled it out while we were on the phone and immediately saw what I was referring to.  She was very embarrassed that it had been missed.  She genuinely apologized and said how sorry she was.  She said she didn’t know what to do at this point.

Before I contacted her, I already had an idea in mind.  The funny part was that she followed the service recovery response template I had covered in the webinar and asked me what I would like to see done.   I offered my idea and she whole heartedly agreed.  She also provided additional avenues to provide my contact information to their clients an even offered to promote my upcoming speaking events locally.

The last two solutions she offered were not even in my mindset when I made my initial call.  I was very appreciative and happy with the outcome.  I laughed and told her that she must have taken notes because she did exactly what I had outlined during the original webinar and article.  She said “Well, like you said, I want to make it better than right and want to make sure that I can more than make up for it. You provide a great service to us and I want to do whatever it takes to continue this relationship.”

Those words were gold to me.  She took my disappointment and turned it around to the point to where I am actually happy that it happened.  I’m getting a bit more  than I originally had hoped for and know that she values me and the help I give them.

In business, we need to think the same way.  When there is an issue with a customer, more than solve it for them.  Make them happy that there was an issue because you surpassed any expectation they had.  This is only one method of delivering excellent service.  Even though the initial transaction was not stellar, you can always turn that into an opportunity to increase customer satisfaction from the back end.  Not only does customer satisfaction increase at this point, but so does customer loyalty.

A customer who has had an issue properly resolved will be far more loyal to you than a satisfied customer who has never had an issue.

We all know that no company is perfect. All of us in one way or another has had an issue with a product or service that we either deliver or have purchased.  My word of advice is this – the problem or challenge does not define you or your company, but the way you handle it does.  If you do nothing to correct the situation and continue on the same path, your reputation will follow the same path.  However, if you take ownership of the situation, make a public acknowledgement of the issues, and take steps to correct it as quickly as possible, you will survive the short term losses.

Toyota has recently aired the following commercial.  I think that they nail service recovery right on the mark.  They acknowledge that they have “not been living up to the standards” that we’ve come to expect from them.  “That’s why 172,000 Toyota employees are dedicated to making things right.”  “We are working around the clock to ensure we build vehicles of the highest quality to restore your faith in our company.”

All of these statements are exactly what the public wants to hear.  Sure, there are some Toyota customers that will leave, but most will return.  Certainly, there will be some potential customers that will be romanced by the offers that some of the American car manufacturers are making to gain previous Toyota customers.

My feeling is that the majority of Toyota customers and many new potential customers will take notice of the way that Toyota has handled themselves.  Was there information available previously that could have corrected the issue? I don’t know, but I am glad to see that  this company is not pushing it under the rug and hoping it would go away.

I’ve included the commercial here for you to see the message that they are working to fix the problem and gain back the trust of the customers.

As I was discussing this with a friend the other day, he made the correlation between a similar circumstance in recent pop-culture.  He was speaking of Tiger Woods and David Letterman.  Both have been caught in less than ideal circumstances with women other than their wives.  David Letterman owned up to it on his show.  Yes, most likely he did so only because he was being blackmailed, but the point is that he made a public acknowledgement of it, apologized to his family, those involved, and his fans.  As a result, his ratings have actually increased since then. 

Tiger Woods on the other hand has not been seen or heard from publicly since the scandal.  As a result, many of his sponsors have dropped him and many friends of his have publicly expressed their disappointment.  True, he will always be one of the best golfers in history and, over time, the public will forget and move on to the next scandal.  But he never owned up to or accepted responsibility for his actions.

Maybe Tiger Woods’ camp should contact Toyota’s public relations firm.   Just a thought………..

Service is the distinguishing factor among businesses that are thriving in these times. For businesses that are providing comparable products and prices as their competitors, customers are taking their spending dollars to the place that values and appreciates them by treating them like royalty.

In an article in The Orange County Register, Bob Cohen, owner of the Fast-teks computer service and repair franchise in Los Alamitos, CA, understands the importance of good customer service by listening and following up with his customers.

“I follow up on every call with every customer,” he says. “Customer service is key, and I go out regularly with my technicians. It helps that we do business on the weekends. More of my business is repeat and referral business.”

Cohen says he learned good habits from the founders of Hewlett Packard where he worked many years. “The founders said they treated every customer as if he was going to be a reference,” Cohen says.

When you train for and use good customer service skills, the customers recognize the efforts that you are making to retain their business and to build a long term relationship with them.  People are much more likely to do business with those that they know, like, and trust.  When you apply these principles into the business equation, any effort put into the relationship to strengthen it will pay off in an increase in growth and profits.

How many products are there out in the world for us to use and consume? Trillions, if not more. How many companies actually ask you what you think of their products? Just a fraction of those trillions. How many companies actually consider and act on the feedback they receive? The number decreases dramatically.

The point is, Dominos has been airing their dirty laundry for the whole world to see in their latest ad campaign to reiterate the fact that they asked, we responded, they considered and acted on that information. They used “The Pizza Turnaround” campaign to show the world that they asked for customer feedback and received feedback that was sometimes hard to listen to. But, they took that information to make a better product.

Like they said in the commercial, many companies don’t like to admit that the are anything less than perfect and hide their faults and imperfections. Dominos clearly points out that they get slammed on their crust and sauce. They then show us that they reformulated their recipes.

We also hear these quotes – “These comments energize us to make it better.” “We want people to love our pizza.” These are the quotes of people within a company that know that they have to do what it takes to succeed.

Dominos understands that unless people like their pizza, no one will buy it and their market share and profits will plummet.

How can you and your organization practice these same principles? If you ask your customers what they think of your products and services, the feedback that you receive will be invaluable. That feedback will tell you exactly what you need to do in order to improve your products and services and to keep your customers coming back for more. Perhaps its the customer service that you deliver that needs improvement. Maybe your products and services are no longer state of the art or need to be fine tuned to keep up with the needs of your customers. If you receive customer feedback and input, be smart and use the information to increase customer satisfaction and loyalty.

Please comment below on if you would publicly admit that your customers weren’t thrilled with your product.

The blog post did bring up a solution that I thought was a brilliant customer service move - Sometimes another gym may offer to accept defunct club memberships in hopes of getting consumers’ renewal business down the line.

When we fix the problems that consumers are having with our competitors, then we become the hero in their eyes.  If other gyms in the area honor the now-defunct memberships, it is a marketing opportunity that should be considered a gift.  Provided that the equipment is at least on par with the closed gym, the classes and pricing comparable, the customer service they provide will be the deciding factor.

By providing excellent customer service and showing gym members that they are valued and appreciated, the new gym is not only providing the opportunity to sell themselves to the transitioning member, they are building a relationship which will pay off in increased customer satisfaction, loyalty, referrals, and profits.

So, when there is a problem in the eyes of your potential customers, fix it if at all possible.  If it wasn’t your fault, you’ll create the  customer centric reputations all smart businesses strive to be known for.

That’s exactly what one entrepreneur found when he purchased a Rocky Mountain Chocolate Factory franchise in the Galleria Mall in Glendale, California. Brian Pickett knew that he was going to have to turn around the service that his store was delivering in order to win back the business of lost customers and to develop customer loyalty.

Customers would openly tell him that they could go to the well known and respected chocolatiers of Godiva and See’s Candy to get their chocolate. Pickett seems to have recognized the truth that customers can find your product or service from your competitors. But the best way to win their business and loyalty is through the service that you provide. As stated in previous posts – customers aren’t buying your product, they are buying the relationship you promise them. If you treat your customers poorly, they won’t want any relationship with you at all. They’ll go to one of your competitors who realizes that customer service is what keeps customers coming back.

Brian started out by training customer service skills and making improvements in the store itself based on the feedback he was getting from customers.  He also spent time marketing to patrons in the mall, even other business owners.  He says it took him about six months to turn things around and win back the customers trust.

As it turns out, all of Pickett’s efforts paid off – literally. His revenue increased 25% in 2008 and his current numbers are 5% over last year, despite the economy and less than ideal location. By improving customer service, the customer satisfaction levels increased, thus customer loyalty increased as well.  This ultimately resulted in increased business and profits.  It’s a win-win situation all around.

“It’s all about customer service — treat people how you want to be treated,” Pickett said. “Even if they don’t buy anything, we appreciate you coming by.”

Read the entire article in the Glendale News Press here to learn more about how service, combined with good business and common sense, can turn just about any business around.

A gentleman wrote a blog post about loyalty marketing.  He had an anecdote regarding a car rental tweet that earned the loyalty of a new customer.

“Chris Brogan, one of the social media mavens that I thoroughly respect and actually like too, told a story on Callie Lewis’s Geekbrief TV the other day about how a car service that that was supposed to pick him up to get him to Microsoft headquarters didn’t show. He tweeted his anger/anguish and a CEO of a national car service sent him a tweet with “here’s my cell.” Call it whenever you need a car and I’ll take care of it for you.” Car came, Brogan happy, loyal customer. As Chris rightfully said, “Yes, you may say its opportunistic, but he listened (to the tweet) and he solved my problem and now I’m loyal to him.”

That’s what I’m talkin’ about!”

Paul Greenberg wrote the post to talk about the emotional needs of the customer. By using social media in the above manner, we can connect to prospective customers in their moment of pain, fix the issue, and win their loyalty.  These customers will most likely be far more loyal than those who never had issues in the first place.

Social media provides a new connectivity to customers that we have not previously had.  Now, we can delight our customers in real time AND the benefit is that others will see us resolve the issues in the process.  As a result, your customer service, satisfaction, and loyalty levels will certainly increase.