Sunday, September 5, 2010

Customer Management System - Getting Clients - Customer Loyalty Goes Way Beyond How Likely Are You?

Getting Clients - Customer Loyalty Goes Way Beyond How Likely Are You?


Determining customer loyalty for many is to have current customers answer this question: How likely are you to refer a friend or family member on a scale of one to ten. (The scale is one being not likely to ten being very likely.) Source: The Ultimate Question by Fred Reichheld.
This rating scale leaves out one important element that being the action of "Have you actually referred anyone?" For it is repeat business and new customers that increase sales and growth. Without finding out if an existing patron actually made a referral, the how likely is now reduced to "so what!"
Recently Brand Keyes (the only consulting firm specializing in customer loyalty) revealed that Dunkin' Donuts is number one in loyal customers for the fourth straight year. This customer loyalty report accurately discerns what products buyers are most likely to buy during the next 12 to 18 months. In other words, this report is all about actions and not just thinking. Within the category of coffee, the criteria included:
  • Meeting needs
  • Taste Expectations
  • Quality
  • Service
Go into any Dunkin' Donuts and you will consistently have excellent fresh brewed coffee not too strong nor too weak, but just right and it will meet your taste expectations. Regardless of where you are, you can depend on receiving the same quality, taste and service. I personally recommend several local franchises to business colleagues, friends and family.
What business people must remember is that nothing happens until action is taken. Sure your clients may rate your business as an 8 to 10, but how do you know they actually talked to anyone. This is why the resurgence of loyalty programs have emerged from J.C. Penney to the many others.
For example a local coffee shop, Cafe Divine in Northwest Indiana, is rewarding those customers who take action by spreading the news about this unique coffee shop. Management tracks the return of special coupons by the name of the individual who passed the coupon along. Customer loyalty is taken from a thought to a physical action leading to increase sales and traffic.
Bottom line is if you wish to increase sales then begin tracking the activities of your repeat patrons. Use incentive programs or reward programs to encourage them to come back time after time. They will quickly spread the word (this saves big bucks in marketing dollars) provided you do your part in staying competitive, providing added value and demonstrating high quality through exceptional service.
What other areas of customer service do you need to think about? This free audit looks to how you can build customer loyalty.
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