By Wendy Kram

Imagine your customer had the following experience with your business: They arrived on time for the meeting but, you delayed it for one hour because a team member didn’t show up for work. They have purchased a specific service but, you inform them it has been discontinued; another, less desirable, service has taken its place. Next, the customer is informed the project cannot start on time because the proper equipment is not ready. Lastly, you tell the customer if they participate in a special program for a small fee, they will avoid additional fees charged for ongoing services.

Asking for a show of hands-who can’t wait to do business with this company? My guess is your hand didn’t fly into the air. This is exactly the experience I recently had flying a major airline. They disappointed me several times with poor service and a never ending stream of fees. A poor experience can do significant damage to customer loyalty. A recent study reported in the Harvard Business Review found 23% of customers who had a positive service interaction told 10 or more people about it. Conversely, 48% of customers who had a negative experience told 10 or more people about it. What is your business doing to prevent disloyal customers and strengthen relationships with loyal customers?

The demands of running a business can cause you to lose focus on the most important asset—the customer. Statistics show it costs 5 times as much to attract a new customer as it does to keep an existing one satisfied. Lance Bettencourt, author of “Service Innovation: How to Go from Customer Needs to Breakthrough Services”, suggests a business shouldn’t ask “How are we doing?” Instead ask, “How is the customer doing?” and “What else would the customer like to be doing?”

Customers are hiring you to get a job done. What else could you do to help the customer get the job done? Best Buy answered this question for home theater systems. Store technicians were helping customers select high-tech home theater systems with all the bells and whistles. The problem was the average homeowner became overwhelmed with mounting a flat screen TV, wiring up the sound system and programming the digital system. Best Buy realized the job people wanted done wasn’t to buy a TV it was to watch the TV. Their answer— The Geek Squad^® which provides installation and programming services. The customer moves from swiping their credit card to pushing a button on the remote to watch the big game- minus the stress of a frustrating and complicated installation.

Apple’s Genius Bar offers another strategy for building customer loyalty by taking customer service beyond the initial purchase. People always run into problems with technology so, Apple created an easy way for customers to get help in their stores- the Genius Bar. An Apple “Genius” has the technical knowledge and authority to quickly and completely solve customer problems on the spot. Example, the customer comes in with a dead MacBook. The genius quickly diagnoses the problem as a bad hard drive and replaces it on the spot. The customer can make future purchases with complete confidence knowing Apple will help them resolve any issues they might encounter using their device.  

Competition for customers is fierce in the market. Customers have an extraordinary array of choices available to them, both through traditional and online sources. Give them a compelling reason to do business with you and they will return. There are dozens of dentists within a 10 mile radius of my home, yet I have been going to the same one for 15 years. Why? My family and I consistently have a great experience at this office. The staff is knowledgeable, friendly and efficient. The dentist is fun, caring and skilled- he performs virtually pain free procedures. Not only do I continue to give him my business— I have referred dozens of people to his office. Loyalty pays dividends.

Are your team members empowered to truly help the customer? Zappos is known for their commitment to customer service. A woman checked into a Las Vegas hotel and had forgotten her shoes. The guest called Zappos where she had originally purchased the shoes looking for a replacement pair. Unfortunately, Zappos did not have the shoes in stock. The customer service representative found a pair at a nearby mall, purchased them and delivered them to the customer for free. The employee focused on solving the customer’s problem instead just taking an order which resulted in a grateful customer who will likely tell many of her friends about the amazing service she received from Zappos. What level of authority have employees been given to solve problems for your customers?

The ultimate test of customer loyalty is the word-of-mouth referral. How many of your current customers are actively telling their friends about your products or services? 50% of them? 20% or them? Are any of them doing this? Solve the customer’s problem and deliver great service in the process to build loyal customers who refer you to others.