08/ 30/ 2006
Getting customers (and clients) to love you enough to stick around
Pete Luetkenhaus of Wentzville, Mo., opened his root-beer stand turned restaurant, Pete's Drive-In, in 1966, and today locals would still rather come to him when they want a quick, hot meal instead of the fast-food chains down the road. Forty years after starting the Drive-In, Luetkenhaus still works six days a week and makes time to chat with the regulars who congregate at his restaurant throughout the day.
Much has changed since Scott Kremp's father opened a family florist in the Philadelphia suburbs more than 50 years ago, but the shop has never strayed from its mission of helping people find quick but creative gifts to convey special feelings. Since adding a Web site with a catalogue that allows customers to peruse and order gift baskets and flower arrangements online, the business is growing more than ever.
Pamela Cook, owner of Cranberry, Pa., PF Cook Brick Company, Inc., could have lost business when the price of brick started to rise recently, but she kept her company on the rise by looking for ways to save clients money. She brings bricks to job sites where her staff unloads them and sells bricks to clients at discounted prices if they bid orders before the most recent hike.
What do these small-business owners have in common? They know the secret to not just making clients and customers happy, but keeping them coming back for more. They operate by the 80/20 rule, which says that successful companies get 80 percent of their business from 20 percent of their customers. They know that loyal customers will not only buy more from them overall, they will also choose them over competitors every time.
Why spend time and money chasing new customers with glossy marketing campaigns if you can't be sure that they'll stick around? Selling to people you already know is much more profitable and predictable. And part of the payoff is that your regulars will spread the word about your business to everyone they know––advertising you can't buy.
If you think that you need loyalty cards, sales gimmicks or sophisticated customer management software to establish a loyal following, think again. While all of these can support your goal of cultivating customer loyalty, they won't actually help you earn it, especially if your efforts mostly attract fickle customers only after a good deal. As a small business, you already have an edge over big businesses in the customer service department. Here are some more tips to help you draw devoted customers and clients.
- Be true to yourself. You must have a good sense of what your business is about and how you fit into your market or industry before you can articulate that to others. Your selling point should reflect your passion. If you're a restaurant owner interested in gourmet food, for instance, concentrate more on providing superior quality than speedy service or discount dinners. If you're a videographer skilled at shooting and editing footage quickly, focus on offering a fast turnaround to clients. The more expertise and consistency you offer to customers and clients, the more they will trust you for guidance and a good experience.
- Know your niche. Understand why you are successful today,what makes you different, and what brings repeat customers back over and over again. Is it exceptional quality, consummate convenience or great bargains? Even if you try to provide a little bit of all of that, you can't be the best at everything. Focus on the thing that makes you successful––and make it better all the time. Once you know your strong suit, do a little bragging. Show your customer or client why you are different from the competition––and why they made the right decision by doing business with you.
- Survey customers. Identify who your repeat customers are and discover what attributes they have in common by asking them what they expect of you. This will point you to customers whose values match yours and show you what kind of customers you need to attract to grow your business. Ask your regulars what you could do to make them happier. With this information, you can identify the right products or services to add or new areas of business to explore to better serve existing customers or clients, as well as craft relevant incentive programs that they will truly appreciate.
- Deliver what you promise. Guarantee your products and services. Respect time constraints and budgets. After the sale, stay connected by inquiring about the success of the delivery and/or implementation. If something goes wrong, react quickly and compensate customers for any inconvenience. Solve problems before they are brought to your attention. Remember, most customers aren't likely to complain to you––they'll just complain to everyone they know. If you take the time to resolve their complaints, they'll be even more likely to do business with you.
- Get personal. Get to know your customers––not just their names, but also something about them. Pay attention to details that they share, as well as the nonverbal cues they give you. Listen as they express their needs and look for ways to fulfill their wishes or solve their problems. Always thank them for their business. You can show repeat customers your appreciation through thank-you notes, reminder cards or newsletters. If you send out monthly mailings to update customers on your business, also include information they can use, such as quotes they can put on their refrigerator, recipes, tips on time management or anything else that you think would interest them.
- Hire like-minded staff. The interaction between customers and clients and your employees sets the stage for repeat business, which is why it is important to hire for attitude as well as skills. Give employees the authority to make decisions in the best interests of customers; otherwise if a customer gets shifted around when a problem arises, he or she might just get frustrated and leave. Make sure to include employees in your strategy and decisionmaking. If they feel like they have a stake in the business, they pass that loyalty onto customers.
- Exceed expectations. Make things as easy as possible for customers so their experience with you will be memorable and pleasant. Provide them with easy access to information they might need, such as delivery schedules, tracking of shipments, etc. When working with clients, immerse yourself in high-priority issues they face and look for solutions to their front-burner problems. Be willing to go the extra mile to meet needs and train your staff to do the same. Even if customers ask you for something beyond what you can do, never make them feel like their request is ridiculous. Throw in something extra to give them added value. For instance, a salon could give customers celebrating their birthdays free haircuts, a dentist could provide free cleanings for patients who have been coming for five years, a gift shop could offer free gift wrapping during Christmas or a coffee shop could put on a free brewing seminar with test tastings.
No matter how many new customers you hope to draw to your business, never take the ones you already have for granted. Always give them a reason to keep coming back.
