The document discusses strategies for businesses to build customer loyalty and referral business during slow economic times. It recommends focusing on building relationships through consistent personal touches like invitations, newsletters, rewards programs and special offers. Referencing studies, it emphasizes that customer retention is more profitable than always pursuing new customers, and that perceived indifference is the top reason customers defect. The key strategies outlined are to build loyalty through experiences and clubs; treat B2B customers as partners; take charge of your brand image through consistency; and partner with other businesses.

1. LET IT SPREAD LIKE WILD FIRE:
THE POWER OF REPEAT AND REFERRAL BUSINESS
Lisbeth Calandrino
www.Lisbethcalandrino.com

2. TWO WEEKS AGO I CONDUCTED
SOME RESEARCH WITH MORE
AFFLUENT CUSTOMERS

3. THE RESULTS SUPPORT THE
NATIONAL TRENDS

4. CONSUMERS ARE RELUCTANT TO
SPEND

5. IT’S TIME TO GO BACK TO THE OLD
DAYS WHEN RELATIONSHIPS
MATTERED

6. THERE WAS A LITTLE ITALIAN MAN
WINE MAKER WHO DIDN’T HAVE AN
ADVERTISING BUDGET
HIS NAME WAS TONY
•

7. HE ONLY KNEW HOW TO DO ONE
THING, THAT WAS “BE NICE” TO HIS
CUSTOMERS

8. TO SHOW HIS LOVE FOR HIS
CUSTOMERS, HE INVITED THEM FOR
DINNER AND COOKED

9. HE KNEW THE BEST WAY TO GET
PROFITABLE CUSTOMERS WAS TO
HAVE THEM BRING IN THEIR
FRIENDS

10. HE KNEW THERE WAS ONE REASON TO BE
IN BUSINESS, AND THAT WAS TO LOVE HIS
CUSTOMERSS

11. WITH BUSINESS BEING SLOW
EVERYONE LOOKS FOR “NEW”
CUSTOMERS

12. THE PROBLEM IS THAT NEW
CUSTOMERS CAN PUT YOU OUT OF
BUSINESS
• 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 $100
Action International, “the cost of acquisition”.

13. THE REAL KEY IS LOYALTY. DOES
LOYALTY 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%?

14. HOW MUCH DOES LOYALTY
MATTER?

15. DO YOU KNOW WHY YOUR CUSTOMERS
LEAVE?
68% Leave because of “perceived
indifference”
14% Leave because of dissatisfaction
9% Leave because of competitive reasons
91% 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

16. IT’S TIME TO PUT SOME HEAT INTO
YOUR BUSINESS!
• Rules of engagement have changed
• Less customers, changing
demographics, less money
• Building less customers but better
customers

17. 1.DO WHATEVER IT TAKES TO
BUILD A RELATIONSHIP WITH YOUR
CUSTOMERS

18. GIVE THEM WHAT THEY NEED

19. 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

20. CLUBS, GAMES AND EVENTS
• In order to build loyalty you must keep in
touch.
• Video or direct mail
• www. sendoutcards.com/lcalandrino

21. YOU MUST MAKE GETTING
CUSTOMER’S ADDRESSES A
PRIORITY
• “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

22. 2. IF YOU’RE DOING B to B
TREAT
YOUR CUSTOMERS AS BUSINESS
PARTNERS
• You need to understand
their business as well
as they do

23. 3. YOU ARE IN CHARGE OF YOUR
OWN BRAND IMAGE
You don’t have to
have the most
money, you have to
have the most
knowledge and be
willing to stay on
top of it.

24. 4. THE KEY TO YOUR SUCCESS
IS CONSISTENCY
• Everyday get emails and
addresses
• Build your data base
• Follow through with your
customers
• Build your niche

25. 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!

26. YOU DON’T NEED ALL THE
CUSTOMERS JUST THE
PROFITABLE ONES

27. 5. THESE DAYS YOU NEED TO
PARTNER UP, SHARE RESOURCES
AND DOUBLE TEAM THE
CUSTOMER!

28. 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!

29. HERE ARE THE 5 KEYS:
1. Build loyalty
2. B to B partnering
3. Take charge of your brand
4. Consistency
5. Partner up!

30. COMMENTS?

31. 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/