Sunday, April 12, 2009

Creating a Community

How do some businesses make it look so easy? You know what I mean… that sense of community that keeps customers coming back, over and over and over. It’s not hard, you just have to build it and they will come.

But, how do you create a sense of community when your company sells plastic molding to distributors? Or, when you sell website development services to other businesses? Or, when your business sells clothing to women, men or children?

It’s easier than you think… but it requires stepping outside the box. You have to get out of your business and look into it from the customer’s perspective. Think of it as a “team” from your past – whether the high school or college football team, cheerleading squad or marching band. Consider carefully the following questions and you’ll figure it out.

1. Consider the team mascot… Do we have a brand that our customers identify with?

2. Consider why people came out to watch… What draws our customers back?

3. Consider how the spectators connected to the team… How can we connect our customers to each other, not just our business?

4. Consider how the team gives back… What place does our business hold in the community (local or nationally)?

5. There is no “I” in team… How can you demonstrate cohesiveness?

6. High-fives… What can you do to communicate to your employees that you value them?

7. Hats off to our fans… How do you show those customers who support your business that you value them?

The answers may vary some from business to business – and will change based on whether or not your end customer is another businesses or consumers at large. But, the process is exactly the same. If you need help developing your community, please call on me! If you've already developed a community... please tell us about it!

Sunday, April 5, 2009

Can Your Customers Be As Loyal As A Big Brown Dog?

First, I must start by defining the word "customer". A customer is that person or business who has already purchased from you or your business at least one time. Money has exchanged hands. Now, I know in many industries, your Sales Manager is likely to tell you to consider everyone you meet "a customer"... but reality is, if they haven't bought from you or your business, ever, then they are NOT a customer. The blogs that I write discuss ways to retain those customers you've already won and should not be confused with strategies to acquire new customers.

Why is it important to delineate between a Prospect and a Customer? Because the model you will follow to win business the first time has different tasks associated than the model you will use to retain the business you've already won. Just as you follow a Sales Cycle Model, you should create and follow a Customer Retention Model. A model is a series of steps executed the same way every time to arrive at the same result.

One statement that I hear over and over that I know is not true... "Customers are not loyal anymore". The truth is this... businesses have gotten lazy. Business owners, both large and small, often EXPECT their customer to be loyal, "just because". "If we sell them right, they will stay forever." There is value in this statement and it certainly helps if your salesforce is selling the customer correctly, but even if they don't, a customer can develop loyalty through effort on the part of the business. Creating loyalty takes effort on the part of the one expecting loyalty - take for instance, the loyalty of a big brown dog...

When I brought my chocolate lab home (he was already 4.5 years old), he was quite the independent mug. I did everything I could think of to make him like me and want to stay. The most critical period I was told by the Rescue Group was the first 30 days. If he didn't run away in the first 30 days, he would bond and become my best friend, and most loyal friend.

So... for the first week, I hugged on him, kissed his nose, took him for walks, fed him, gave him treats, bought him toys, played with him, I made funny faces, we played fetch, we danced, we snuggled, and I talked to him, constantly, like he could understand what I was saying... are you starting to see a pattern here? It took effort on my part to foster loyalty from him. But, once I got it - it was mine for life. He lived with me for nearly 6 years before he passed away... and, at the end, his eyes told me "I want to be with you even if it means living in pain". That's some pretty amazing loyalty! Cute story you say, but really Carol, how does this relate to my customers?

It's easy. Research shows that if you can build a bond and create a connection with your customer within the first 30 days, they are 78% more likely to stay your customer for life. But, it takes effort on your part... You have to "hug" them, "kiss" them, take them for walks, feed them, reward them with toys, treats and playtime and you have to talk to them! If you don't, they will find someone else who does...

Enter the Customer Relationship Management Strategy, often referred to as simply, Customer Retention. It is more than smiling pretty and calling your customers "darlin". Customer Retention is a strategy, an over-arching philosophy, that can be executed through individual contact as well as through automated means (technology).

Just like fostering the loyalty of your dog, you must foster loyalty with your customers. One thing is for certain, when it comes to whether or not your customers are loyal - YOU are in control. If you are reaching out to each and every one, and letting them know that they are important to your business and that you appreciate the money they spend with you - they will respond with loyalty, and quite possibly... a big slobbery puppy kiss! 8-)