The Northfront Entrepreneur Alliance is a entreprenuer networking association in Northern Utah. This presentation was given on 08.31.11 by Steve Cloward, an expert on customer service.
He discusses how to build your "customer inventory" through better customer service.
2. Introductions Steven P. Cloward Public and Private Company Executive Management President and CEO Big O Tires for 16 years Franchising 400 Big O Retail Stores Small Company Ownership Developed and Owned 8 Grease Monkey Quick Lube and Car Wash Locations Currently own two, both in Grease Monkey’s Top 10 in Car Count and Volume Director Northfront Business Resource Center Director of DATC School of Business
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4. It spans all functional business departments and every individual employee.
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6. Customer Service for Small Business Every small business owner or manager needs to focus on designing, developing, and implementing a sound customer service program using the limited resources available. If a customer isn’t happy with the product or service and/or if he or she was treated poorly it can cost the company significant dollars in future sales and reputation. On the other hand, a happy customer will lead to many new customers and establish a valuable reputation for a company in the market.
7. Customer Service for Small Business If marketing is the fuel for your business then customer service is the octane….. The higher the octane, the better your business will run. It affects word of mouth marketing, It affects your credibility and reputation and Excellent customer servicehelps to establish you as a brand.
8. Customer Loyalty-Key To Business Success Customer retention has always been one of the most cost effective ways to increase business revenue.
9. Customer Loyalty-Key To Business Success According to the international consulting firm Bain and Company, you can increase profits by as much as 95% through increasing retention by as little as 5%.
10. Customer Loyalty-Key To Business Success Repeat customers spend 33% more than new customers. Referrals among repeat customers are 107% greater than non-customers. It costs six times more to sell something to a prospect than to sell that same thing to an existing customer.
11. Customer Loyalty-Key To Business Success Customer retention is not only a cost effective and profitable strategy, but in today’s business world it’s essential. This is especially true when you remember that 80% of your sales come from 20% of your customersand clients.
12. Customer Loyalty-Key To Business Success With these statistics I am wondering why most marketing and sales campaigns are designed for the new customer.
13. Customer Loyalty-Key To Business Success If organizations fail to focus their efforts on servicing current customers while spending excessive amounts on acquiring new ones, they are wasting their efforts and much of their revenue.
16. Customer Loyalty-Key To Business Success On the surface, it seems like a logical business conclusion: Keep customers and employees satisfied, and an organization can expect to earn their long-term loyalty and enjoy increasing sales and profitability. Right?
17. Customer Loyalty-Key To Business Success In a recent Harvard Business Review article, (it was) noted that between 65% and 85% of customers who defect said they were “satisfied or very satisfied” with their former supplier.
20. Customer Loyalty-Key To Business Success Customer Satisfaction Does NOT equal Customer Loyalty
21. Customer Loyalty-Key To Business Success Quite simply, in order to retain all your customers and increase your sales, you need to go beyond customer satisfaction and develop the rapport and relationship that will make your customers, life long loyal patrons.
22. Customer Loyalty-Key To Business Success Exceed The Customers Expectations You must move beyond mere customer service. You need to “to strike with awe and wonder.” Awe! Wonder!
27. Customer Loyalty-Key To Business Success Jeffrey Gitomer: Customer Satisfaction is Worthless, Customer Loyalty is Priceless. Every company’s universal mission statement should be: “Treat every customer is such a memorable way that when the transaction is complete, the customer tells someone else how great it was.”
28. Customer Loyalty-Key To Business Success List of basic customer service ingredients needed to take a customer from Satisfied to Delighted : Understand the need for developing customer relationships... Stay in touch with your customers… (I was no where in the area and I thought I would stop by and see ya.) Find out what they are thinking…
29. Customer Loyalty-Key To Business Success List of basic customer service ingredients needed to take a customer from Satisfied to Delighted : Find out if they are satisfied and if not why… Know how to solve your customers problems... Exceed their expectations… Train and empower your employees to do the same…
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31. Customer Loyalty-Key To Business Success Long Term Loyal Customers: Are much less likely to react to your competitor’s ads Retaining existing customers is considerably cheaper than acquiring new ones. Are your best form of advertising
33. Customer Loyalty-Key To Business Success Apostles:Spread the “Good Word” Terrorists: Spread the Word Apostles:Share with 4-8 others Terrorists: Share with 10-20 others Apostles: Recommend you to others Terrorists: Recommend anyone but you
34. Customer Loyalty-Key To Business Success Apostles: Are created by consistently exceeding the customers expectations. Terrorists: Are created by failing to handle the original problem. A Converted Terrorist or dissatisfied customer will many times become your most long term loyal and vocal supporters.
35. Customer Loyalty-Key To Business Success “Grows and matures with the Customer Relationship” Customer Loyalty:
36. Customer Loyalty-Key To Business Success Customer Relationships While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing your existing customer base. Companies that fail to nurture and retain their customer base ultimately fail. Relationships are strongest when they become personal.
37. Customer Loyalty-Key To Business Success Customer Relationships The bottom line is that one of the key components in marketing and business growth is to spend the majority of your time and effort nurturing customer relationships by consistently exceeding their expectations and looking for opportunities to prove how important they are to your success.
Editor's Notes
The integrated circles encompasses, builds upon and supports each interior circle. If any circle is weak or non-existent, the small business is prone to failure. The Northfront Pro Series is designed to strengthen each Integrated Circle and help a small business not only survive, but to grow.Circle 1 - Product or Service A great product or service is a necessity for a successful business. The product or service must fill a need or solve a problem for potential customers, and as result it must convert those potential customers into loyal customers. Selling the product or service to a customer is worthwhile only if there is a high gross profit margin adequate to cover operating costs and provide the owner a return on their time and investmentCircle 2 - StrategyThere are many definitions of a business strategy, but for a small business we define it as “The determination of the market or markets a company will compete in, and how it will do that to achieve profitability and growth.” The strategy will determine if a business has potential for fast growth or if it must compete head-to-head with competitors for each dollar in the market. A poor strategy can doom a great product or service, but a great strategy can make a mediocre product or service look great. The strategy must provide the best growth potential for the product or service.Circle 3 - Best PracticesBest practices must support the strategy of the company and must span the complete value-chain beginning at the product creation through to product delivery. A weakness and any part of the value-chain can be disastrous when competing against strong competition. If the company strategy creates a strong differentiation from the competitors, the best practices can be designed to support slow or rapid growth. Circle 4 - Customer ServiceCustomer service is the long-term differentiator. Any product or service, best practice, or strategy will not last forever. Competitors will always find ways to eventually take customers from a market leader. They implement best practices, they can copy your strategy, but customers service is the ultimate battle ground to maintain customers and grow a business. It will not assure rapid growth but it can assure stability and it can tie that customer base to your company and make it very difficult for the competition to drew it away.
