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Customer Loyalty Begins With Meeting Customers’ Needs Even If They Are Contrary to the Strategic Plan
Written by: Leanne Hoagland-SmithArticle Overview: Are you building loyal customers? Does your strategic plan potentially drive customers away and reduce revenues? Read how some companies did just that and had to make course corrections.
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Customer Loyalty Begins With Meeting Customers’ Needs Even If They Are Contrary to the Strategic Plan
Want loyal customers? Then you must begin with putting them first and policies second. This paradigm shift may fly counter to the current strategic plan or desires of the C-Level executive team. Recent reports show exactly how by simply responding to customers’ needs can increase revenue and growth the bottom line.
P.F. Chang, an upscale Chinese franchise restaurant, designed a business model that did not include take out food. In fact, take out was actually discouraged until management changed its customer service policies in recent years. This change of including take out food has resulted in 13% share of the restaurant’s sales without the benefit of marketing. One of the problems from this customer service change is that current restaurant design must be altered to increase kitchen space for take-outs.
Another restaurant that realized to improve customer service by building customer loyalty was Outback Restaurant. In 1994, one local franchise owner located near Orlando, began to his own curb side service by blocking off parking and assigning hostesses to take the food to the hungry customers sitting in their cars. Now 13 years later, curbside service has grown to 12% of annual sales compared to 3% just 10 years ago. Today’s goal is to increase this revenue stream to 15%. Other traditional dine-in restaurants have adopted the curbside customer service from Applebee’s to Don Pablos.
Probably, the best example of meeting customers’ needs are the drive ins for McDonald’s and other fast food restaurants. These businesses saw that many of their customers were ordering food for take out at the counter and then made that experience much easier by building drive through lanes.
When companies positively react to meeting the customers’ needs, customer loyalty is strengthened and ultimately revenues increase. However, when companies ignore customers’ needs, the opposite happens. Customers now look for other businesses to meet their needs and may never return.
The lesson to be learned here is to be ever vigilant to meet your customers’ needs and not allow your current strategic plan or policies to dictate your course without considering the customers’ needs. Sometimes, these needs may not be met, but they should always be considered especially if you use customer surveys. Just remember how you felt when someone asked you for your feedback and then you did nothing. Doing nothing drives customers away and does not build customer loyalty.
Take the time to review your strategic plan to make sure it will take you where you want to go.
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About the Author: Leanne Hoagland-Smith RSS for Leanne's articles - Visit Leanne's website Executive consultant, sales coach and speaker, Leanne Hoagland-Smith, partners with innovative and crazy busy leaders who want to dramatically improve their team results. What this looks like differs for each firm and why a free strategy session is offered just by calling 219.759.5601 CDT USA to have a conversation about the results you are seeking. If you prefer you can forward a request to coach@processspecialist.com Her book, Be the Red Jacket is a no-nonsense and quick read to help discover potential gaps that may be keeping you from your goal to increase sales. The forward is by Evan Carmichael of EvanCarmichael.com Remember if you think you cannot or you think you can either way you are right. (Henry Ford). Sales Coaching Tip: Change your thoughts; improve your results. Click here to visit Leanne's website Leadership Assessment Leadership Audit For Business Business Building Check List |
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