Tuesday, September 30, 2008

Six Drivers Of Customer Loyalty

Writen by Kenneth Wallace

Many well-known companies have famously fashioned mission, values and vision statements that claim they begin and end with their customers. Oh, but were it so in reality! Be this as it may, these carefully crafted proclamations are nevertheless informative and valuable because they serve to remind companies of their high calling and to help them measure how far away from their standards they've strayed.

In reviewing many of these iconic declarations I've discovered that six aspects of how an organization should view and treat its customers are usually mentioned. I believe that when all six of these drivers are consistently and thoughtfully implemented throughout a company, the financial bottom line increases because the operational bottom line of building caring and satisfying relationships with customers is effectively and creatively addressed.

The best way to increase profitability is to increase customer loyalty to your organization because loyal customers spend more and cost less than new customers. Of course, when you do acquire new customers these drivers will serve to develop the quality of relationship with them that will keep them loyal to you.

I have done a lot of coaching and consulting in the automotive industry over the years. It occurs to me that no matter what industry you're in, you're actually in the C.A.R. business. Everything you and your people do with, for and to the customer serves to create one of two types of relationships: awesome or awful. In other words, in every action and inaction you're either Creating Awesome Relationships or Creating Awful Relationships. The "A" is the variable and is within your control to create and change.

Over the years, for a variety of reasons, some justified but most unjustified, the car business has gotten a bad reputation. Keeping in mind that YOU are in the C.A.R. business, too, no matter what you do, what kind of relationships are you creating with your customers: awesome, awful or somewhere in the mundane and mediocre middle? One way or the other you are earning a reputation by what you do and don't do for your customers. Your reputation is what your community as well as your customers think of when they think of you and your organization. When they think of you are they inspired to return to you? With every interaction you're giving your customers one of two things: a reason to come back or a reason to go elsewhere.

Here are the six drivers of customer loyalty:

1. Trust

• Customers want to be treated fairly and honestly without reservation or hesitation

• They desire friendly service in a stress-free environment

• Customers crave a pressure-free purchase experience; the central focus of conversation should be their interests, not the interests of the company or its personnel

• Customers like to do business with businesses who maintain long-term employees

• Customers look forward to consistent and predictable patterns of employee behavior; if there are any surprises, they had better be ones that delight them, not disturb what they've come to expect

2. Caring Treatment

• Genuine concern for and appreciation of the customer and his/her specific needs, desires and idiosyncrasies

• Exceeding customers' expectations should always be strived for; this can only be done, however, when you know exactly what customers actually expect from you and your organization; when you know what they really want and need, that will usually be enough for most customers

3. Ongoing Contact

• Consistent contact that is personalized is highly valued by customers

• Such contacts in all forms (written, verbal, face-to-face) should be event-driven and value-added; anything that is not perceived as being value-added is perceived to be pressure-added

• The events that drive customer contacts should be primarily those occurring in their lives and not solely as a means to sell the company's products and services; if the former is done regularly and is personalized, customers are more open to and welcoming of any marketing messages from the company; consequently, advertising costs decline as revenues are enhanced

4. Ownership Benefits

• Customers who are loyal are fond of receiving special privileges; examples are frequency programs, access to areas of the facility that are normally unavailable, exclusive lounges or meeting places, partnering opportunities with both for-profit and non-profit organizations, etc.

• Recognition of customers by name and genuine expressions of appreciation for their business is very important; recognizing loyal customers for their contribution not just to the company but to the community is especially important

5. Convenience to the Customer

• Respect for customers' time is paramount; the company that can provide the most valuable information to help customers comfortably make informed decisions in the least amount of time is the one that earns their loyal business

• Customers want the shopping and purchasing process to be easy; the company that develops processes that not only streamline the customer's experience but also make it enjoyable and fun will capture more of their customers' business

6. Consistency of Performance

• The organization must possess processes that enable all employees to deliver a consistent message of care and competence whenever customers interact with them; this must be true at all levels of the company and at all times in all ways with all customers

Implementing these six drivers of customer loyalty in creative ways will drive your business toward capturing a greater "share of mind" in your marketplace. When people think of your organization they will say, "what an awesome place to do business! Let's do it again!"

Ken Wallace, M. Div., CSL has been in the organizational development field since 1973. He is a seasoned consultant, speaker and executive coach with extensive business experience in multiple industries who provides practical organizational direction and support for business leaders. A professional member of the National Speakers Association since 1989, he is also a member of the International Federation for Professional Speaking and holds the Certified Seminar Leader (CSL) professional designation awarded by the American Seminar Leaders Association.

Ken is one of only eight certified Business Systems Coaches worldwide for General Motors.

His topics include ethics, leadership, change, communication & his unique Optimal Process Design® program.

Tel:(800)235-5690 Claim your free Leadership Self-Evaluation Checklist by visiting the Better Than Your Best website.

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