In 2011, seven out of ten Americans said they were willing to spend more with companies that they believe provide excellent customer service. Learn 5 quick tips to make sure your small business' customer service is top notch.
Service is Your Best Marketing Strategy: 5 Quick Tips
Service Is Your Best MarketingStrategy
Experts agree that loyalty is the mosteffective and highest return marketingRetailers with loyalty programs, on average,are 88% more profitable than competitorswho do not.DELOITTE RESEARCH SURVEYCustomer loyalty is the single most important driverof growth and profitability.HARVARD BUSINESS REVIEWIt is 6 to 7 times more to acquire a newcustomer than to retain an existing one.BAIN & COMPANY
Loyalty marketing is more relevanttoday than it has ever been• Your biggest asset is your existing customer base and foottraffic• Data shows that loyalty programs can increase customervisits by 20 percent or more• With social media, each of your customers can now shareyour brand with hundreds of others• Technology can now automate most of your loyaltymarketing needs• It’s marketing that’s fun and makes sense!
Loyalty marketing ROI is traditionally driven byincreasing visits, spend, and response to promotionsVisit go.fivestars.com/loyaltyguide to learn moreFramework for Calculating Loyalty ReturnVisitMoreFrequentlySpend MorePer VisitParticipateinPromotionsRewardCostsProgramCostsNetRevenueIncreaseCustomer Behavior Loyalty Marketing Costs
• In 2011, 7 in 10 Americans said they were willing to spendmore with companies they believe provide excellentcustomer service• Dissatisfaction with customer service is the #1 reasoncustomers won’t return to a business$$ $ $3 out of 4customers havespent morewith a companybecause ofpositiveexperiencesHow Great Service Drives LoyaltySOURCE: AMERICAN EXPRESS SURVEY
Tip #1: Show that you really care.• Connect with your customers on a human, emotionallevel• Share stories and try to relate to the customer• Look for ways to delight the customer, in the spur ofthe moment• Use customers’ names when you interact with them• Pay attention and remember the small things, like achild’s favorite candy or an upcoming anniversary5 Practical Service Tips
Real Life Example: Zappos5 Practical Service TipsIt’s more important thatwe make an emotionalconnection with thecustomer, rather than justquickly getting them offthe phone.DEREK CARDER, CUSTOMER LOYALTY OPERATIONSMANAGER”“Percent of Zappos sales comesfrom return customers, who onaverage, spend 2.5 times morethan first timers.SOURCE: CONSUMERIST & DAILY DEAL MEDIA75%FROM JAY, A ZAPPOS CUSTOMER ANDBEST MAN, WHO ALMOST ARRIVED TO THEWEDDING WITH NO SHOES:I spoke with Lydia Burrola wholistened carefully to my situation andshe offered to overnight areplacement pair of shoes. It was atthis point I felt I had to tell her thatthis level of service was bothoutstanding, and completelyunexpected. On top of completelytaking care of my problem andadding the “VIP” bonus, she thenissued a complete refund. Freeshoes. Unbelievable. Zappos hasearned a customer for life.“”
Tip #2: Get customer feedback and act on it. Now!• Find ways to get your customers’ feedback, the goodand the bad: It shows that you really care about theirexperience• Ask if there is anything else you or your employees canbe doing to give them the best you can• Always shoot to go above and beyond what isexpected when responding to feedback• Act on feedback requestsas soon as you can5 Practical Service TipsDO YOUHAVE TIMETODAY?
Real Life Example: Trader Joe’s5 Practical Service TipsSOURCE: FAST COMPANY & JABUSFIELD.COMMarynne Aaronson was pleasantly surprisedat how quickly her Reno, Nevada, storestarted carrying a soy ice-cream cookie shedrequested after trying it at a SouthernCalifornia location.Store Captains spend most of their day onthe retail floor and have a lot of autonomy toset up their stores to meet local needs.Employees can open any product a customerwants to taste and are encouraged both torecommend products they like and to behonest about items they dont. All storeemployees can email buyers directly withideas or feedback from customers.Customer feedback doesnt have to comefrom sophisticated research. At TraderJoes, its all about listening to people.And my heart wasglad: Glad to be atTrader Joe’s; glad thatthese employees wereawesome people. Mykid will alwaysremember TraderJoe’s as the place hedanced.FROM J.A. BUSFIELD, ABOUT HEREXPERIENCE WHEN TRADER JOE’SEMPLOYEES TOOK HER COMMENTS TOHEART AND HAD AN IMPROMPTUDANCE PARTY IN THE GROCERY AISLEFOR HER ANTSY SON:”“
5 Practical Service TipsWhen customers sharetheir story, they’re not justsharing pain points.They’re actually teachingyou how to make yourproduct, service, andbusiness better. Yourcustomer serviceorganization should bedesigned to efficientlycommunicate those issues.KRISTIN SMABY, “BEING HUMAN IS GOOD BUSINESS” ”“SOURCE: HELP SCOUT
Tip #3: Build long-term relationships.• Like a dating relationship, woo your customer afterthey have already purchased from you• Reward them for being loyal customers over time• Surprise them on special events, like birthdays orholidays• Go the extra step and follow up after their purchaseand make sure everything is going well5 Practical Service Tips
Real Life Example: Panera Bread5 Practical Service TipsPanera Bread launched theMyPanera customer loyaltyprogram in 2010. Customers in thisprogram enjoy free items based onpast purchases, invitations toevents at their restaurants, andspecial treats on their birthday.Panera’s loyalty program hashelped them keep in contact withtheir customers and understandtheir buying habits.This has helped Panera Bread tailorits offerings to what the customerslike, so customers will keep comingback again and again.SOURCE: ST.LOUIS TODAY & ANALYST DISTRICTMyPanera is focused onfostering uniquerelationships withcustomers through deeplyunderstanding how eachguest enjoys and interactswith Panera today, and newways they might like to inthe future.BILL MORETON, PANERA BREAD CHIEF EXECUTIVEOFFICER”“
Tip #4: Hire servant leaders.• Servant leaders are people who lead by serving all oftheir peers regardless of their position or lack there-of• A servant leader is a servant first, and these type ofpeople will continually put your customers’ needsabove their own5 Practical Service TipsSOURCE: MCKINSEY• Look to hire people withthese types ofcharacteristics: humility,warmth, empathy,conscientiousness, andoptimism! Percent of buying experiences arebased on how the customer feelsthey are being treated.70%
Real Life Example: Chick-Fil-A5 Practical Service TipsThe main idea of ‘servantleadership’ is that leadersserve the staff. Managers treattheir employees how theywant those employees, in turn,to treat customers. If we haveto keep telling people what todo, it means were notmodeling the behaviorourselves. If were living itevery day, we dont need totalk about it.DAN CATHY, CHICK-FIL-A CHIEF OPERATING OFFICER”“You can’t be too thoroughabout hiring.For Chick-fil-A, the process ofselecting new franchisees canbe painstaking and very lengthy(up to a year). Applicants workin a restaurant and endurecountless interviews; often, theirspouses and parents getinterviewed as well. They wantto be sure that new operatorsshare Chick-fil-As corporatevalues.Chick-fil-A looks for peoplewho exhibit humility, passionfor service, compassion, andgenuineness.SOURCE: FAST COMPANY
Tip #5: Mistakes happen. Make it right.• Own up to your mistakes. Genuinely apologize and makethe situation right based on the customer’s individualneeds.• Allow your customers to vent about issues and don’tinterrupt until they have said everything they want to say.Never argue with a customer, even if they may be wrong.• It takes 12 positive service experiences to make up for 1negative experience.5 Practical Service Tips• A third of consumers say theyexperience a rude customerservice at least once a month...58%tell their friendsabout it!...and
Real Life Example: Starbucks5 Practical Service TipsAs described in CharlesDuhigg’s The Power ofHabit, Starbucks employeesundergo rigorous training inhow to recognize andrespond to customerneeds. They learn aboutwhat the company calls the“Latte Method” ofresponding to unpleasantsituations.Baristas learn to recognizewhen their customers areexhibiting negativeemotions and, moreimportantly, how to addressthese emotions in positiveways.The Starbucks LATTE Method:We Listen to the customer,Acknowledge their complaint,Take action by solving theproblem,Thank them, and thenExplain why the problemoccurredSOURCE: FORBES ONLINE”“
5 Practical Service TipsThe single most importantthing is to make peoplehappy. If you are makingpeople happy, as a sideeffect, they will be happyto open up their walletsand pay you.DEREK SIVERS, CD BABY ”“SOURCE: HELP SCOUT
Need a customer service boost?• Want an easier way to remember all of yourcustomers names?• Wish you had more specific details about their visitsto your small business?• Want to delight them on their birthday or otherholidays?Cue shameless plug!FiveStars Loyalty Automation Platform can help!
FiveStars is pioneering loyalty automation thatincludes service marketing toolsFIVESTARS LOYALTY AUTOMATION PLATFORMWe take care of everythingPoint-of-SaleRelationshipManagerFiveStarsCardCustomerEngagementToolkit• Customer info right onthe POS• Never slow down the line• Built in fraud control• Simple technologyeveryone can use• Impossible to lose• Over 700,000 cardholders• Simple segmentation• Text or email campaigns• Social media integrationWant a free loyalty consultation from FiveStars?Visit go.fivestars.com/demorequest