Customer Loyalty

Do you know what your customers are saying about you...you better!

Do you know what your customers are saying about you...you better!

Here is a powerful example of why customer feedback is so important to your business. Events like this happen everyday...are you making it easy for your customers to tell you what they think. Think of how "deadly" this word of mouth story could have been:

"A customer, Janet, recently gave us a feedback score of 0 and wrote a long story about the terrible haircut she received. She basically said she would never come back to Fantastic Sams. I sent her an apology e-mail and asked her to call me so I could apologize live, versus just e-mail. After a short phone call, she agreed to come back to the hair salon and let someone fix her haircut. I called the salon and arranged for her to call on her way in and ensure she had absolutely no wait when she arrived. I called her after her haircut and she was thrilled. She was amazed that I took the time to follow up with her again on the phone. . Janet also sent out 3 referrals through Promoterz. She also scheduled to come back to the salon to have her hair colored! I never would have known this woman was so upset without Promoterz. Think of all the people she would have told her story to. Now she is telling a new story...how great we are! Promoterz just saved my business thousands of dollars in potential lost revenue...thank you Promoterz!"

Scott Weintraub
Fantastic Sams
Owner
New Jersey
908.806.7272

Is this happening in your business?....are you sure? You have thousands of reasons to find out.

Customers who feel that you are listening to them are more likely to recommend you to a friend. How do your customers know that you are listening? Learn more

The Negative Impact of Word-of-Mouth

The Negative Impact of Word-of-Mouth

I listened to a story on NPR this afternoon about the negative impact of bad word-of-mouth, you can listen to it here. Very scary. This is part one of a two part story by Wendy Kaufman, hopefully the second part will bring out the positive aspects from good word-of-mouth.

The basis for the article comes from research by the Wharton School of Business. They found that 1 out of 2 customers has a customer service problem when they shop. Worse is the fact that they then tell friends, family, and colleagues about it and embellish the story in the retelling. The overall result is that 1/2 of those that hear the bad news story won't shop at those places they heard about. Ouch! Those that improve on the situation certainly create a business advantage.

It goes to show the need for businesses to hear from their customers, the bad news as well as the good. Hearing the bad news you can make efforts to correct the situation so that bad embellished stories won't be spread. You even have the opportunity to turn a detractor into a promoter. You can also get to the root cause and fix it to reduce future bad experiences.

Get customer feedback, generate referrals, and increase repeat sales for as little as $150 a month. Learn more

One More Chapter in a Great Story

One More Chapter in a Great Story

About six months ago I wrote about a small, bricks and mortar business that had successfully implemented and was enjoying the fruits of an online system that increased word-of-mouth marketing for their business. You can read the original post here. In a nutshell, the business is a haircut salon for men--a Sportclips franchise to be exact. The owners, Chuck and Joan Matheny, were using Promoterz to 1) Collect feedback from their customers, 2) Establish an "opt-in" email relationship through which they could communicate directly with their customers, and 3) Give their customers an easy way to tell their friends about their store. Top line result: more than a 20% increase in revenue.

Here is a new chapter in their saga:

Corporate SportClips introduced and has been encouraging franchisees to promote a "Season Ticket" concept. Customers willing to pay for six haircuts in advance get a free upgrade to MVP service on each of those haircuts (MVP includes a hot towel and shoulder massage among other things). Because several hundred of the Matheny's customers have asked to receive updates about the store by email, promoting the Season Ticket with an email seemed like a natural. Think about the value of Chuck's email list: because he had reached out to his customers and provided a way for them to opt-in, he could now communicate with those that wanted to hear from him directly and at absolutely no cost. He didn't have to wait for them to come into the store or pay for an expensive ad.

Rather than just encouraging the customers to come in to a store and ask for a Season Pass, we decided to put the technology to the test and offer the customers a quick and simple way to buy the card directly online. The email included a "one-click" buy button. Customers could opt to have the card mailed to them or come into the store and pick it up. The test has been a great success. Several customers have purchased online and the orders continue to come in. Cha-ching! A new online revenue stream for a bricks and mortar business.

Small test--significant implications. Here is a small "old industry/bricks and mortar" business that has figured out a way to use the internet--not as a glorified yellow-pages ad, but as a tool to generate new revenue streams, increase repeat customer visits and collect new leads--all of which have a direct impact on the top and bottom lines.

The real "no-brainer?" The Matheny's used Promoterz to do all of this. The cost: $50 per month per store.

Do you remember your customers on their birthday? On their anniversary? Do you give special notice to recently acquired customers? Promoterz does. Learn more

How does this work?

How does this work?

Imagine that your local grocery store just implemented some new policies. Here they are:

  • We don't want just anyone coming into our store so we are going to make all of our customers get a photo ID and we are going to check it at the door on the way in. Oh yea, and we are going to charge them $50+/year for it.
  • We are no longer going to be stocking every item. We are just going to stock whatever we want and can get a good deal on. People will have to come in and see what we have.
  • We have too many payment options. We are only going to accept American Express, our own credit card of course, and a PIN based debit card. No Visa, Mastercard or Discover card.
  • We are no longer going to give bags to our customers, in fact, we are not even going to have bags at all. We'll just use old boxes stuff came in, if we run out too bad we'll just put the groceries in their cart. Oh and we are not going to help anyone to their car, they can do it themselves.
  • We are concerned that even though we have IDs of our customers, we think they are ripping us off. So we will frisk them on the way out of the store and make sure things in their cart are on their receipt.

What do you think would happen to your local grocery store if they implemented these?

It is amazing that those policies loosely describe a very successful company that has very loyal customers, Costco.

Why does this work? Why do people do it? Is it the allure of being part of a club? Is it that it is an adventure to find out what is there and then be able to tell others about it? Is it that people like to tell others how much they saved? When I talk to people about Costco they often bring up the great food on the way out, the low gas prices, and the deal they recently found. They also always say they are saving money. A quick google search will reveal the arguable nature of that. But whether they save or not is not the point. They believe they are. Costco does that right.

I think they might qualify as one of Seth's "purple cows". They always have "deals", if you want something for less, look at costco. They don't pretend to be anything more and their customers like it that way. They know what their customers like and they give it to them. Not all people will like how they do it, but those are not the people they are after. The store is remarkable to its customers and they are always "remarking" to their friends about the deals they found. Those comments bring in other like minded folks and their business prospers.

Who are your loyal customers? What do they really like about your company and are willing to talk about? Are you trying to be all things to all people and end up not being remarkable? Discover what makes you remarkable and makes your customers talkative. It will lead to ideas on how to grow your company with a happy talkative customer base.

Do you remember your customers on their birthday? On their anniversary? Do you give special notice to recently acquired customers? Promoterz does. Learn more

How will you be viewed?






I love optical illusions. It is fascinating how our minds can be tricked. The good folks at grand-illusions have a dragon illusion that you can download and build yourself. Here is a video showing the illusion in more detail.

This seems to be another example of the brain assigning a symbol to something (see earlier post) to make processing lots of information quicker. In this case, it seems the brain "knows" that if a dragon is looking at us that its nose would be closer to us than its eyes. It is called the "Hollow Face Illusion".

Just as our brain can interpret what we see as two completely different views, it appears it does the same thing with people. For example, let's say you are looking at a playground and you see a child climbing up a slide. You also see an adult in the shadows hiding behind a nearby tree peeking out and watching the child.

If you don't know this adult chances are you will remember being taught "stranger danger!" and you will immediately become suspicious that this might be a predator. However, if you knew this adult you would assume that they are playing hide-and-seek. Two completely different conclusions from the same situation. Obviously, previous experience colors our perception.

Inevitably you, or someone in your company, will make a mistake. At that point your customer's view of you will determine the conclusion they draw. If you are a stranger they may view the mistake as a callous disregard for customers from a company that only cares about its profits. However, if they have had several good experiences with your company they will be more likely to give you the benefit of the doubt.

If your customers only hear from you when you are selling something you are missing out on a chance to build trust and change from being a stranger to a friend. Why not send a non-salesy greeting to them on their birthday, let them get to know you, it is good insurance for future mishaps and it is what friends do.

If you are not regularly staying in touch with your customers someone else will. How do you stay in touch? Learn more
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