Recently, a client recommended a certain vendor to David. In trying to secure a large print order, David immediately called the vendor not once but five times. The call was never returned, and the vendor lost a significant six-figure order.
The question for you: "Are you losing business before your eyes?" Delivering an experience that is satisfying to customers and differentiated from competitors drives both repeat visits and improved profitability. However, poor experiences such as the one described above enable clients like David to test competitors and move freely to others.
Further, in today's competitive and quick-paced world, it is not difficult for someone like David to take the remote control and switch quickly to the competition. And if that does not work, he or she will switch again as loyalty in today's market runs thin.
The Family and Friends Plan
The cost of conducting business is very expensive. The costs of everything from gasoline to telecommunications are on the rise. But maintaining clients costs less than one-third of the cost of new client acquisition. Organizations today fail to adopt the "family and friends plan." One negative interaction between client and vendor will be shared amongst family, friends, and neighbors.
Recently, a real estate professional securing a $1 million sales agreement was asked by the same client to find a new home. Being distant with the client by focusing on new client acquisition, she not only lost the $1 million sale but also a $1.2 million purchase by the same client! Friends and neighbors discovered the issue, and now the agent's sales are down 37%.
It's the Little Things
I do an extensive amount of work with a print and shipping operation not far from my home office. Many vendors have opted for my services, but I prefer to go to Frank and Carol. They have a mutual passion for serving the client.
My visits are not about business; they are about interested friends exchanging pleasantries and getter better acquainted each time. Frank and Carol know the names of my children, their respective birthdays, and even my wife's! That is not just interest and not just about friendship—it is service differentiation.
Further, one Sunday evening, I received a telephone call at 9:30 from Frank indicating the completion of a job. He apologized for a two-day delay and wanted me to know that the job was not only ready but was on his tab. That is service with a smile and service that continues to enable me to return time and time again.
Consistency
Effective operations and service experiences yield to the bottom line. Consistent execution leads to repeat business via customer loyalty and lower cost of operation. Interestingly, and based on doctoral research prior to this study, happy clients lead to happy employees, and happy employees lead to less attrition on both sides of the operation.
Three businesses exemplify consistency:
- Starbucks always hires excited and passionate baristas. Their energy and consistency help retain customer loyalty. It is no wonder that consumers do not mind paying a premium for coffee. Whether you are in Boise or Baton Rouge, you, the consumer, will always be served in a similar fashion.
- Southwest Airlines decreases flight fares by offering a uniform fee with a passionate and energized staff. Infrequently does one have a poor experience traveling with this air carrier, which continues through the years to post significant profits.
- McDonald's offers fast, reliable, and efficient service in any city. Employees are constantly willing and ready for your order. And while dietary issues have changed during recent times, this fast food icon continually posts profitable results.
Standards for Excellence
Creating a program—or, rather, culture—to achieve consistent experience is difficult and arduous work. The first phase is assessing critically where you are and where you want to be. It is imperative to take pen to paper and ask both customers and employees about their experiences with the organization. Seek trends and spikes in the data. Do not ask for the "why" but the "what" and the "how." There exist other helpful ideas:
- Make unannounced site visits to multiple locations, or simply watch operations. Use a critical eye here to denote spikes in the mission, vision, and values of your organization.
- Do not look for the obvious. Seek the rationale for the little items. Ensure calls are answered in two to three rings. Return calls within an allotted time frame; for example, I return all client calls, within reason, within 90 minutes of receipt. Use thank-you cards, and remember clients' names.
- Teach and coach. Your clients as well as your customers need the correct operational tools. If you seek improvements, they must be taught, as years of habit do not immediately change.
- When change is needed, set standards and stick to them. These include standards for appearance, dress, hiring, and client interaction. If the culture does not exemplify the standards, how might clients remain loyal?
About the Author
Drew Stevens is a sales expert who assists organizations with selling and servicing clients in less time. Drew is the author of six books, including Split Second Leadership, Split Second Selling, and Split Second Customer Service. Drew has written more than 150 articles on selling and service and is frequently called on by the media for his expertise. For more information, contact Drew at 877-391-6821 or drew@gettingtothefinishline.com.
©2007 All Rights Reserved. Drew Stevens, Ph.D.
