Customer Loyalty is a coveted objective for most businesses. Books, metrics, methods, and entire industries have been dedicated to this Holy Grail on which, by some reports, U.S. companies collectively invest over $1.2 billion annually. Many organizations employ elaborate Customer Relationship Management (CRM) systems and constant contact schemes to support their systematic efforts at generating customer loyalty.
An Inside Out Perspective
In our work with thousands of sales and customer service professionals across a broad range of industries, we have learned that a different mindset and approach – based on giving loyalty rather than getting loyalty – is much more effective in developing loyal, long-term, mutually profitable relationships with customers. This inside out approach focuses on a set of specific loyalty behaviors that we can identify and apply in our relationships with our customers:
- Act as the first/single point of contact for customers (all the solutions from one contact)
- Behave as the customer’s advocate (look out for them, be on their side in seeking solutions, tell them when your product/service isn’t “right” for them)
- Remember positive things about each customer
- Respond promptly to customer requests/contact (return calls and inquiries quickly)
- Give time to customers (don’t appear rushed)
- Listen to customers until they feel understood
- Treat customers’ referrals extremely well
- Contact customers when you don’t “need something” (offer congratulations, thanks, compliments)
- Give value when you contact customers (instead of “just calling to check in”)
- Trust your customers, give them the benefit of the doubt
- Be honest/open with customers (tell the truth)
- Keep your promises fully
If we change our mindset from one of seeking loyalty to one of giving loyalty, we create a dynamic that encourages “loyalty responses” from our customers:
A loyal customer…
- Trusts us
- Takes our calls and responds to our messages
- Keeps his or her promises to us
- Provides honest feedback
- Responds promptly to requests
- Gives us the benefit of the doubt
- Comes to our events
- Refers us to colleagues and friends
- Stops by to visit (for no specific reason)
- Gives us the inside track on their new business
- Is willing to pay full price for full value (they don’t nickel-and-dime us)
- Is forgiving when things go wrong
- Acknowledges us outside of the workplace
- Appreciates and acknowledges our efforts
Giving Loyalty in Order to Get Loyalty
In order to receive loyalty, you have to be willing to give loyalty – first. Like any win/win relationship we must be willing to let the customer “win first” and as a result we have a shot at “winning” their loyalty.
Take the example of the street vendor in Manhattan selling coffee, donuts, and newspapers from his sidewalk stand. To shorten the time spent on line by his customers, he places a pile of coins at the end of the counter. For any transaction that isn’t an even dollar amount, he directs customers to take the amount of change due them from the pile. This dramatically improves the “transaction speed” for this vendor, thereby dramatically increasing his customer throughput and total revenue. He does this by trusting his customers to take the correct amount of change. They reward him in turn by returning day after day. Abuses are few and easily outweighed by the increased profits of higher volume.
Other examples of organizations that have flourished with an inside out approach to loyalty include:
- A BMW dealership in the Carolinas offers a free car wash – to both customers and non-customers – every Saturday, building bonds between both current and potential customers.
- Amazon.com recreated their systems to conform to each customer, their interests, their buying patterns, and their marketing focus. They allow customers to offer their products and earn a commission without even thinking about it. They also recommend products that each individual user might enjoy.
- The Apple Store distinguishes itself from other computer stores by focusing on keeping the customers productive instead of just fixing their machines. They even have a “concierge” to greet and guide store visitors.
Effective organizations and their people understand that customer loyalty starts with ME rather than the customer. If we can change our mindset from GETting loyalty to GIVEing loyalty, our customers will notice the difference.
So spare yourself and your customers the platitudes. It’s the loyalty attitudes that lead to loyal customers.
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Jim Cathcart is a leading speaker on customer relationships and the author of the best-selling book: Relationship Selling