Ever work with a supplier, business partner, or vendor when your relationship was virtually dead and you were actively searching for someone else to supply that service or product to you? You were walking or still buying from them, but trying like mad to get out from under them. They made life so miserable for you, were very difficult to do business with, were rigid in their policies, did not come through for you when you needed them. You felt liberated when you could finally tell them to go pound sand. You then went on to tell everyone you could how aweful it was and now how good it was.
Now as a business owner or manager, we all need to look in the mirror. I will be the first to confess that I have at times made life miserable for customers, but not on purpose. Maybe you are now saying “Boy, that business is messed up”. Well, if you have been in business more than 20 years and haven’t had a dissatisfied customer I want to hang out with you. Things happen, but we need to own up to it, fix the issue quickly and stay on top of it. Process breakdowns, lack of proper resources, miscommunications can cause train wrecks, but typically the problems start small and if left uncorrected come to a head. When we hear of these problems we apologize and can’t believe it happened.
Does your business know when customers are so frustrated with you that they are trying to leave? The larger the enterprise, the trickier it is to know. The smaller the enterprise, the easier for the customer to gently walk away without telling the truth to your face. Here are a true story from a recent survey we conducted. A printer recieved a loyalty rating, those who say they would recommend you to others, of 53%. Average printers run in the 92% range here. Nearly 100 years ago they carved out their niche and owned the market by locking out competition, but now things changed and their ex-customers were telling them why they left and really gave it to them. The “Walking Dead” or those still buying, but feeling hostage explained their efforts to find someone else. I felt aweful for the business because it was slowing dying and management continued to blame the economy and the shift to the internet as the reason. There is some truth in that, but customers were also walking to other printers. It was not the quality of the product as much as the level of service that caused the walking dead.
Lesson learned: keep the pulse of your customers over time, react quickly, and don’t become complacent.
Here are a few things to consider when you look at customer loyalty and keeping the pulse. Think of the critical satisfiers for your customer base. Assuming your product is solid, think of the things such as responsiveness to e-mail and voicemails, shipping product on time, having clear invoices, estimating properly, estimating timely, communicating project status on a continuous basis, issuing credits timely, shipping the right products, having product in stock for quick delivery. Pick the top 4 or 5 things that if done well will put you in the best position. But, don’t neglect the little things that can drive people crazy.
Great Customer Loyalty is driven by treating each customer in a unique and special way while doing the basics well.