IT’S TIME TO GO BACK TO THE OLD DAYS WHEN RELATIONSHIPS MATTERED
THERE WAS A LITTLE ITALIAN MANWINE MAKER WHO DIDN’T HAVE AN ADVERTISING BUDGET HIS NAME WAS TONY•
HE ONLY KNEW HOW TO DO ONETHING, THAT WAS “BE NICE” TO HISCUSTOMERS
TO SHOW HIS LOVE FOR HISCUSTOMERS, HE INVITED THEM FORDINNER AND COOKED
HE KNEW THE BEST WAY TO GETPROFITABLE CUSTOMERS WAS TOHAVE THEM BRING IN THEIRFRIENDS
HE KNEW THERE WAS ONE REASON TO BEIN BUSINESS, AND THAT WAS TO LOVE HIS CUSTOMERSS
WITH BUSINESS BEING SLOWEVERYONE LOOKS FOR “NEW” CUSTOMERS
THE PROBLEM IS THAT NEWCUSTOMERS CAN PUT YOU OUT OFBUSINESS• Spend $300.00 a week and get 30 New Customer• Customer spends $5.00; $2.50 is profit and $2.50 is hard cost.• Has actually lost $5 on each new customer.• If of those 30 new customers, 20 never came back, the bakery has actually lost $100Action International, “the cost of acquisition”.
THE REAL KEY IS LOYALTY. DOESLOYALTY MATTER?• For every 1% improvement in your customer retention rate, operating income will improve by 20%• A 5% reduction in customer defections can lead to an 85% boost in profits.• Customer loyalty generates operating margins of 13%, while laggards had margins of just 2%?
DO YOU KNOW WHY YOUR CUSTOMERSLEAVE?68% Leave because of “perceived indifference”14% Leave because of dissatisfaction9% Leave because of competitive reasons91% of customer defections can be impacted by staying in touch! What are you doing to “stay in touch?”Richheld and Sasser study, Harvard Business Review
IT’S TIME TO PUT SOME HEAT INTOYOUR BUSINESS!• Rules of engagement have changed• Less customers, changing demographics, less money• Building less customers but better customers
1.DO WHATEVER IT TAKES TOBUILD A RELATIONSHIP WITH YOURCUSTOMERS
CUSTOMERS WILL PAY FOR EXPERIENCES• There was a hotel in California that had free manicures and shoe shining on Thursdays. Guests booked their stays around these services. How about Yoga and Pilates? (That’s what JC Penny is doing)• Parties, meet other guests, have fun LOYALTY
CLUBS, GAMES AND EVENTS• In order to build loyalty you must keep in touch.• Video or direct mail• www. sendoutcards.com/lcalandrino
YOU MUST MAKE GETTINGCUSTOMER’S ADDRESSES APRIORITY• “We would love to have you on our mailing list, preferred customer list or special offer list..”• Keep track of points, Staples rewards, Panera Bread, Starbuck points—reward the loyal customers. The ones who keep coming back.• Get their birthdays, anniversaries, kids birthdays—anything personal so you can connect
2. IF YOU’RE DOING B to B TREATYOUR CUSTOMERS AS BUSINESSPARTNERS• You need to understand their business as well as they do
3. YOU ARE IN CHARGE OF YOUROWN BRAND IMAGEYou don’t have tohave the mostmoney, you have tohave the mostknowledge and bewilling to stay ontop of it.
4. THE KEY TO YOUR SUCCESSIS CONSISTENCY• Everyday get emails and addresses• Build your data base• Follow through with your customers• Build your niche
WHERE ARE YOUR CUSTOMERS?• The average business loses 10% of it’s customers yearly, not because of price.• 85% of customers interviewed said they will pay 10-15% higher prices if the customer service is great. The key? Consistency!
YOU DON’T NEED ALL THECUSTOMERS JUST THEPROFITABLE ONES
5. THESE DAYS YOU NEED TOPARTNER UP, SHARE RESOURCESAND DOUBLE TEAM THECUSTOMER!
GET EVERYONE EXCITED AND ON THE SAME PAGE• You’re heading into your season; this is the time to build relationships and find partners that will last you through the year.• Get them jazzed!
HERE ARE THE 5 KEYS:1. Build loyalty2. B to B partnering3. Take charge of your brand4. Consistency5. Partner up!
Lisbeth Calandrino Helping businesses build loyal relationships through customer service and sales training 518.495.5380 www.Lisbethcalandrino.com Redhotcustomerservice@nycap.rr.com New York State Media Group http://capitalbusinessreview.com/