Seeds of Growth - Customer Loyalty

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

Kevin Stevenson — Fri, 03 Oct 2008 06:45:51 -0600

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.

Unhappy customers tell on average 22 other people. If you ticket price is $50 that is $1100 in revenue. How would you like to know before they tell 22 others? Learn more

The Negative Impact of Word-of-Mouth

Dan Crites — Mon, 21 May 2007 18:23:06 -0600

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

Dave Free — Fri, 15 Dec 2006 14:55:51 -0700

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.

The Happiest customers tell on average 8 other people. Who are your happiest customers? Promoterz knows. Learn more

How does this work?

Joe Free — Wed, 20 Sep 2006 10:14:16 -0600

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.

The growth of your business will be determined by what your customers say about it. Do you know what they are saying? Learn more

How will you be viewed?

Joe Free — Fri, 15 Sep 2006 14:45:15 -0600

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.

Promoterz is the hands-free, word-of-mouth marketing service that takes care of the details so you can focus on business. Learn more

The Starbucks Online Coupon Fiasco--Venti Size

Dave Free — Fri, 01 Sep 2006 23:47:24 -0600

Just about everybody with a blog commented on Starbuck's recent problems with online coupons. You can read the story here . John from Brand Autopsy asserts they never would have done something that dumb in his day (used to work there) and recommends more limited expiration dates. Seth has some additional principles for avoiding such issues. Countless others also weighed in on how it could have been avoided and what Starbuck's should do now that it has happened. All good stuff, but I hope the baby (online coupons) doesn't get thrown out with the bath water.

In a nutshell, Starbucks created an online coupon with about a thirty day expiration date for a free iced coffee drink. They gave the coupon to a few employees in select areas and expected it to stay limited. It didn't. It took off like wildfire thanks to the internet and they ended up posting signs in their stores saying "regretfully" they would no longer be valid at any Starbuck locations.

In my mind, the real story is not that online coupons don't work, but quite the opposite: online coupons work well--in this case too well. Remember the old days when you had to pay to get coupons printed in a newspaper or to hand out. You had to pay for every one! Not so on the internet. They multiply without costing you a dime. Isn't that just what you want to have happen? It should be. So the lesson is this: make sure that any offer you put on an online coupon is something that you would be happy to see proliferate. Tools to do that? Limit the expiration date, make it a "buy something to get something" offer, give away something with no hard costs. Have other ideas for creating coupons you're happy to see proliferate? Post them here.

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

Service or Tool for Small Business?

Dave Free — Mon, 28 Aug 2006 12:49:07 -0600

One of the adages that Steve Covey popularized in his 7 Habits was "give a man a fish and feed him for a day, teach a man to fish and feed him for a lifetime." The statement is obviously true and applicable in many of life's situations, but frankly there are instances when people either don't have the time or the desire to learn how to fish. I'm not talking about the welfare crowd (though that may be a problem). What I'm talking about is small business owners and what it takes to successfully sell to them.

Here is my experience: We developed Promoterz as an inexpensive, do-it-yourself system that any small business could use to collect customer feedback, generate referrals and stay in touch with their customers. In a nutshell, we help them make sure their customers are happy and get them talking to their friends. The system has been tested in multiple industries and it works. Those that use it, receive measurable benefit.

So far, so good. We've got a tool that the majority of small businesses could use to speed their growth. As we've met with business owners in person or attracted them to our website, it has become clear that most of them don't want to be taught how to use the tool. They don't have time. They would much prefer to pay for a service. In order to put fish on their table they have a list of about 100 other things they need to be learning and doing. One customer noted that when she wants an ad in the newspaper she just pays the paper and doesn't have to know how to use the press. Ouch!

As we tweak the pricing model to cover the additional service, some small businesses may balk, but I am now convinced that there are more small businesses looking for a fillet on the platter (complete with a wedge of lemon) than those interested in buying a fishing pole--even if it comes with a fly tying kit.

Food's on! Step right up!

The growth of your business will be determined by what your customers say about it. Do you know what they are saying? Learn more

Customer Surveys Gone Bad

Dave Free — Thu, 24 Aug 2006 13:06:18 -0600

Asking customers for feedback is a great way to get them more engaged and find opportunities to improve any business. Unfortunately, as with anything good, if not used appropriately they can cause more grief than benefit. Here are a few holes not to step in:

1) Don't ask just because you can. There is nothing worse than a long customer service survey--so long that by the time you finish it you can't remember what the original shopping experience was like. Is anyone really using that data? Make it as short as you possibly can and then cut it in half. Your customers will thank you and you'll stay focused on what is really important. Want more detail? Contact a few of those that answered your short survey and ask them if they'd be willing to spend some more time on additional questions.

2) Pay attention to the details. Nothing destroys credibility faster than a stupid question. If you limit yourself to only a few questions all the stupid ones will go away. Here is an example from the September 2006 Readers Digest:

Maybe I was overreacting, but I couldn't help worrying about the quality of care at the local hospital. On a form titled "Some Questions for Our Pregnant Patients," the very first item was: "1. Gender? (check one) M_ F_." Jenniey Tallman, Tyro, Virginia

3) Numbers are good, comments are better. Numbers, if used appropriately, can give you a good feeling for trends and direction over time, but they are no match for free-form comments from your customers. Numbers can be manipulated and misinterpreted but actual comments like the following paint a compelling picture that doesn't require interpretation.

...location has long lines all the time (out the door). They could do something to speed up the process. Sometimes we don't go there because we know it takes so long.

Don't throw the baby out with the bath water. Customer feedback is a great thing. Just be careful how you ask.

True Blue Fans Create!

Dave Free — Fri, 18 Aug 2006 15:02:42 -0600

I've written some in the past about the benefits of inviting your customers to participate in the creative process. Two benefits: 1) the content produced and 2) the fact that the more they do for your business, the more likely they are to mention it to others. Just came upon another example of that process taking place online.

CougarBlue.com is a discussion board for BYU Cougar fans (yes, I am one). Anyway, a new thread got started that suggested fans bring a white or blue towel to the football games this fall. The thread quickly became an online brainstorming session including assignments and reports on assignments etc. You can check it out here. Several pages of posts you'll need to scan through to see its progression.

Not sure if the vending or marketing folks at BYU are plugged in to or are aware of it, but it is a great example of fans (customers) getting involved and creating something that they love and will pay for. How can you turn your customers into fans, creating something they will love and pay for?

Go Cougars!

The growth of your business will be determined by what your customers say about it. Do you know what they are saying? Learn more

Look What I Did!

Dave Free — Thu, 10 Aug 2006 13:39:51 -0600

I remember having a note pinned to my shirt by my kindergarten teacher to make sure it made it home to my parents. (They don't do it anymore, probably because of liability issues--they used straight pins for goodness sakes--can you imagine all the things a five year old can do with a straight pin on the bus ride home?) What I don't remember is my teacher having to pin my artwork to my shirt. She didn't need to. It was always the first thing that got to my mom's hands-- "Look what I did!"

Nothing has changed. My kids do the same thing. We never see the notes from the teachers but we do see their artwork. And it doesn't change with age either: people are more likely to be excited and want to talk about something they helped create. What does that mean for your business? The more you invite your customers to be involved with your business, the more likely it is that they will tell others about your business.

In addition to the higher likelihood of talking about your business, depending on what you invite your customers to do, you can also gain valuable knowledge and insights.

For example, one of the simplest ways to invite your customers to get more involved is to ask for their feedback. Not only does customer involvement go up, but the content of their responses can help you improve your business. If you take the time to thank the customer for their response and mention how you are using it, their sense of "ownership" in your business will increase and with it their desire to tell others "Look what I did!"

Asking for feedback is perhaps the simplest and quickest way to get customers more involved but is certainly not the only way. American Express has encouraged customers to create 15 second commercials around their "My Life My Card" theme. Kodak sponsored a "create your own commercial" site that allowed users to upload their own photos which were then inserted in a Kodak commercial.

Just like every great idea, there are some potential pitfalls. Chevy sponsored a "Make your own Tahoe commercial" contest and ended up some that will certainly not win the contest.

Also, don't expect all of your customers to immediately begin to participate. Data is building that suggests that for every 100 people online, 1 will create content and 10 will then interact with it. The remaining 89 will just view it. Read more.

Neither of these pitfalls should keep you from thinking of ways to invite your customers to get more involved and give them the opportunity to say "Look what I did!"

Here is a final example of a company giving their customers a way to get involved and doing it successfully. This came from a post on Brains on Fire.

The company is Fiskars, the one that make scissors. Did you know there are Fiskateers? Yep, ambassadors for crafting and for Fiskars. They have a blog, a message board and gallery. Check out the community album. Any doubt those folks are saying "Look what I did!" to family and friends?

Ode to The Pizza Man

Dave Free — Tue, 08 Aug 2006 11:32:30 -0600

She ordered that night (stomachs were growling)
A few pizzas to keep the kids from howling.

We waited and waited and waited some more,
Must the pepperoni age before it got to the door?

The minutes they ticked by--fifteen then thirty, forty-five, fifty--
Anger joined hunger as the clock ticked past sixty.

At ninety minutes, no less, the doorbell chime rang
Finally some food for our bedraggled gang!

Someone will hear about this she insisted
A phone call was made and the manager listened.

A few days later, by mail was delivered to me,
A note with certificates for two pizzas free!

The long wait of last week, its memory has faded
With thoughts that they listened, we're no longer jaded.

It's pizza tonight from Papa John's once more
the manager there knew how to settle the score.

Mistakes, they happen, but this truth remains:
To the business that listens come the most gains.

[Don't worry, I'm not quitting my day job! Nice to see a business do good and make a save. Aware of other saves you've made or seen made? Tell us about them--and no, you don't need to rhyme.]

When you pass out a Promoterz bounce back card you automatically build an accurate customer list, increase repeat sales, increase referrals and prevent lost business. Pretty powerful little card. Learn more

Building trust - insights from my mechanic

Joe Free — Tue, 01 Aug 2006 15:29:34 -0600

I have a little '97 Dodge Neon that has been "enjoying" the heat about as much as the rest of the country and began overheating. I took it to Hefners and dropped it off with no fear. I had no worries they were going to be looking for ways to overcharge me or do something unnecessary to fund their vacation.

This kind of trust only comes through experience. On one occasion they explained I had a slow leak in my AC compressor system that would cost about $1000 to fix. However, they suggested topping off the coolant and watching to see how long it lasted to determine if a fix were worth it. Turns out it lasted for about 6 months. So I decided to pay $30 every 6 months rather than $1000. It would take 16 years to make the repair worth it! (probably be using hovercraft or something by then anyway).

I have gone in before and they just tweaked something and charged me nothing! I left the car at a repair place and came back and was charged nothing. Ask anyone that is lucky enough to know Hefners and they will tell you the same kind of stories.

Hefners is not a pretty place, they don't talk to you much, it is not in the nicest neighborhood. But they are honest, look to save you money, and keep you informed and I have been going there for nearly 20 years. They treat you like you are a family member with a car problem.

Are your customers feeling that way about you? What can you do to give them experiences that build trust. This is something that doesn't come from catchy copy or flashy fliers or wizzy webpages or slick salesmen, it comes from experience. With it you will succeed, without it you won't.

[OK, for those of you nearby that want to get some of that Hefner goodness here is their contact info: Hefner's Auto Repair (480)969-8291 they are on 502 N. Center Street, Mesa, Arizona 85201]

Find your happy customers and put a megaphone in their hand. Learn more

The Power of the Talking Bubble

Dave Free — Thu, 27 Jul 2006 15:29:41 -0600

Remember the talking bubble from the cartoons? It occurs to me that there is a lot of power in that bubble. In fact, the whole intent of word-of-mouth efforts is to get your business in your customer's bubble.

How much money do we as business owners spend getting our ads up in lights, in a magazine, on TV, or online? Fact is, consumers are more jaded than ever and better at ignoring all that expensive advertising.

The real power is not up on the billboards or on the airwaves. The real power is in the bubble.

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

Carnival of Business - #14

Dan Crites — Mon, 24 Jul 2006 09:07:24 -0600

Welcome to the July 24, 2006 edition of carnival of business. Come on in! This edition has got something for everybody! Before we jump into the submissions, we're going to drop by the games booth and announce the winner of 12 free months of PromoterZ. Drum roll please!

And the winner is James Chandler, owner of Data Doctors in Salt Lake City. Congratulations James! For the rest of you, don't give up hope. We'll be hosting the Carnival of Marketing on August 6th and 13th and giving away more prizes. Enter here. Now on to the submissions.

Like any Carnival or State Fair worth it's peanuts, we've got a little something for everybody. From baseball, to employee fraud, to why it is important to have fun, we've got it all.

Benjamin Yoskovitz starts us off with some good reminders for keeping our ever-present to-do lists focused. Get Organized and More Productive! No More Bloated To-Do Lists.

Amy Rogers follows that up with the first item to put on our to-do list: when is the right time to hire? New Hire Gut Check.

David Lorenzo then presents Common Workplace Woes and Their Solutions. Which is sure to put a few more items on that to-do list.

Though we'd all like to believe it would never happen to us, Tracy L. Coenen, reminds us that employee theft happens and provides some good counsel for detecting it (don't worry, the fun stuff is coming!) How to catch employees stealing.

Jeannie Bauer then restores our hope with some great pointers on being better leaders: The Magic of a Great Business Leader.

Tim King follows Jeannie with some great questions to ask yourself about your market. Before Your Idea Can Take Off.

David Maister then lays out the role technology and IT should play in your drive to improvement with The High Priest's Catechism.

Can't talk about technology without 2.0 coming up. Daniel Scocco cuts through some of the 2.0 buzz and lays out in clear terms what it means for your marketing. Marketing Under the Information Age - Top 5 Trends .

Greg Swann sticks with the 2.0 theme but focuses specifically on what that means for realtors. Great stuff here for any professional. Apprehending Realtor 2.0: Seven essential skills of the 21st century real estate agent... .

Baseball, finally! David Daniels uses the New York Yankees as a great example of an organization that has created an upward spiral. Creating an Upward Spiral .

Marcus Markou then reminds that Happy People Are The Key .

And last, but not least Kathy Sierra gives us a solid business case for having fun with Usability through fun. Need more proof? Check out Playing For Water.

Well that's it folks! Thanks for joining us for this edition of the carnival of business. Don't forget to enter to win at the Carnival of Marketing--here on Seeds on August 6th.

You can submit your blog article to the next edition of Carnival of Business using the carnival submission form.

Past posts and future hosts can be found on the blog carnival index page.

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carnival of business, blog carnival.

Blog Carnival index: Carnival of Business - #14

from Blog Carnival on Wed, 07/26/2006 - 7:51pm

CARNIVAL OF BUSINESS is now up at Seeds of Growth!

Promoterz is the hands-free, word-of-mouth marketing service that takes care of the details so you can focus on business. Learn more

Consumer A.D.D. -- Is There a Cure?

Dave Free — Mon, 17 Jul 2006 19:00:02 -0600

After describing modern consumers and their desire to watch or read what they want, when they want, the current issue of Business Week concludes:

The result: a serious case of attention deficit for every business that depends on traditional mass media to reach customers.

So the question is, what is the cure? Here is an additional question that I think leads to the answer: if consumers aren't paying attention to traditional advertising, who are they paying attention to?

The answer: their friends, their colleagues, their neighbor, their obnoxious brother-in-law--frankly, anybody but an advertiser. So what is the solution for a business? Turn your customers into promoters. Your customers are somebody's friend, colleague, neighbor and yes, even obnoxious brother-in-law. Make your customers so happy they can't wait to tell somebody--that is the cure.

Your success will be determined more by what your customers say about your business than what you say about it--no matter how much you pay to say it!

Find your happy customers and put a megaphone in their hand. Learn more