Building Customer Inventory by Steve Cloward

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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.

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Building Customer Inventory by Steve Cloward

  1. 1. Customer Service for Small Business<br />
  2. 2. Introductions<br /> Steven P. Cloward<br /> Public and Private Company Executive Management<br />President and CEO Big O Tires for 16 years<br /> Franchising <br />400 Big O Retail Stores<br /> Small Company Ownership<br />Developed and Owned 8 Grease Monkey Quick Lube and Car Wash Locations <br />Currently own two, both in Grease Monkey’s Top 10 in Car Count and Volume<br /> Director Northfront Business Resource Center<br /> Director of DATC School of Business<br />
  3. 3. Customer Service for Small Business<br /><ul><li>Customer Service is one of the most important functions in a small business and one of the most overlooked.
  4. 4. It spans all functional business departments and every individual employee.
  5. 5. If one department or individual fails it can completely undo the work of everyone else in the company. </li></li></ul><li>The Pro Series - Integrated Circles for a Successful Small Business<br />Pro Series Process<br />Integrated Circles<br />  <br />Customer ServiceLong-Term Differentiator<br />Management<br />Finance<br />Marketing<br />Sales<br />Technology<br />Legal Environment<br />Supports<br />Strategy<br />Strategic Planning<br />Growth Potential<br />Your Business<br />Product or Service<br />Idea to Concept<br />Concept to Launch<br />
  6. 6. Customer Service for Small Business<br />Every small business owner or manager needs to focus on designing, developing, and implementing a sound customer service program using the limited resources available. <br />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. <br /> On the other hand, a happy customer will lead to many new customers and establish a valuable reputation for a company in the market.<br />
  7. 7. Customer Service for Small Business<br />If marketing is the fuel for your business then customer service is the octane…..<br />The higher the octane, the better your business will run. <br />It affects word of mouth marketing, <br />It affects your credibility and reputation and<br />Excellent customer servicehelps to<br /> establish you as a brand.<br />
  8. 8. Customer Loyalty-Key To Business Success<br /> Customer retention has always been one of the most cost effective ways to increase business revenue. <br />
  9. 9. Customer Loyalty-Key To Business Success<br />According to the international consulting firm Bain and Company, you can increase profits by as much as 95% <br /> through increasing retention by <br /> as little as 5%.<br />
  10. 10. Customer Loyalty-Key To Business Success<br />Repeat customers spend 33% more than new customers.<br />Referrals among repeat customers are 107% greater than non-customers.<br />It costs six times more to sell something to a prospect than to sell that same thing to an<br /> existing customer.<br />
  11. 11. Customer Loyalty-Key To Business Success<br />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. <br />
  12. 12. Customer Loyalty-Key To Business Success<br />With these statistics I am wondering why most marketing and sales campaigns are designed for the new customer.<br />
  13. 13. Customer Loyalty-Key To Business Success<br />If organizations fail to focus their efforts on servicing current customers while spending excessive amounts on acquiring new ones, they are wasting their efforts<br /> and much of their revenue.<br />
  14. 14. Customer Loyalty-Key To Business Success<br />Customer <br />Satisfaction<br />
  15. 15. Customer Loyalty-Key To Business Success<br />100% Customer <br />Satisfaction <br />Guaranteed<br />
  16. 16. Customer Loyalty-Key To Business Success<br />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?<br />
  17. 17. Customer Loyalty-Key To Business Success<br />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. <br />
  18. 18. Customer Loyalty-Key To Business Success<br />What’s the solution? <br />
  19. 19. Customer Loyalty-Key To Business Success<br />Customer <br />Loyalty<br />Key To Business Success<br />
  20. 20. Customer Loyalty-Key To Business Success<br />Customer Satisfaction <br />Does NOT equal<br />Customer Loyalty<br />
  21. 21. Customer Loyalty-Key To Business Success<br />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.<br />
  22. 22. Customer Loyalty-Key To Business Success<br />Exceed The Customers Expectations<br />You must move beyond mere customer service. You need to “to strike with awe and wonder.”<br />Awe!<br />Wonder!<br />
  23. 23. Customer Loyalty-Key To Business Success<br /><ul><li>POS: Positively Outrageous Service
  24. 24. CUSTOMER ASTONISHMENT
  25. 25. Give em‘ the Pickle
  26. 26. Customer Delight</li></li></ul><li>Customer Loyalty-Key To Business Success<br />Customer Delight requires that all of your team is on board and customer policies parallel expected customer service standards. <br />Customer Delight requires that you empower you employees sufficiently to allow Delight to occur. <br />Customer Delight requires that you adhere to one very basic premise: “The Customer is always right”<br />
  27. 27. Customer Loyalty-Key To Business Success<br />Jeffrey Gitomer:<br />Customer Satisfaction is Worthless,<br /> Customer Loyalty is Priceless.<br />Every company’s universal mission statement should be:<br />“Treat every customer is such a memorable way that when the transaction is complete, the customer tells someone else how great it was.”<br />
  28. 28. Customer Loyalty-Key To Business Success<br />List of basic customer service ingredients needed to take a customer from Satisfied to Delighted :<br />Understand the need for developing customer relationships...<br />Stay in touch with your customers… <br /> (I was no where in the area and I thought I would stop by and see ya.)<br />Find out what they are thinking…<br />
  29. 29. Customer Loyalty-Key To Business Success<br />List of basic customer service ingredients needed to take a customer from Satisfied to Delighted :<br />Find out if they are satisfied and if not why…<br />Know how to solve your customers problems... <br />Exceed their expectations…<br />Train and empower your employees to do the same…<br />
  30. 30. Customer Loyalty-Key To Business Success<br /><ul><li>Long Term Loyal Customers:</li></ul>Have larger average tickets and shop you more often<br />Are less price sensitive<br />Are more forgiving of your mistakes<br />
  31. 31. Customer Loyalty-Key To Business Success<br />Long Term Loyal Customers:<br />Are much less likely to react to your competitor’s ads<br />Retaining existing customers is considerably cheaper than acquiring new ones.<br />Are your best form of advertising<br />
  32. 32. Customer Loyalty-Key To Business Success<br />Apostles vs Terrorists<br />
  33. 33. Customer Loyalty-Key To Business Success<br />Apostles:Spread the “Good Word”<br />Terrorists: Spread the Word<br />Apostles:Share with 4-8 others<br />Terrorists: Share with 10-20 others<br />Apostles: Recommend you to others<br />Terrorists: Recommend anyone but you<br />
  34. 34. Customer Loyalty-Key To Business Success<br />Apostles: Are created by consistently exceeding the customers expectations.<br />Terrorists: Are created by failing to handle the original problem.<br />A Converted Terrorist or dissatisfied customer will many times become your most long term loyal and vocal supporters.<br />
  35. 35. Customer Loyalty-Key To Business Success<br />“Grows and matures with the Customer Relationship”<br />Customer Loyalty: <br />
  36. 36. Customer Loyalty-Key To Business Success<br />Customer Relationships<br />While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing your existing customer base. <br />Companies that fail to nurture and retain their customer base ultimately fail.<br />Relationships are strongest when they become personal. <br />
  37. 37. Customer Loyalty-Key To Business Success<br />Customer Relationships<br />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. <br />

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