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The Nine Lives Of Customer Loyalty



The Nine Lives Of Customer Loyalty
   

There is an old saying that cats have nine lives.

Legend has it that Baldwin III, Count of Ypres, threw some cats from a tower in AD962. Europe was a tough place for cats in those days. But the more simplistic answer is that cats are resilient creatures, who manage to get into the tightest places and still land on their feet. Most have split personalities, suffering from eternal schizophrenia. One minute they’re cuddling up to you like a warm, furry ball. The next they’re arching their back and hissing, afraid of their own shadow.

Customer Loyalty has nine lives also. After all there is only so much a customer is going to take before he leaves because of one of your employees’ indifference to his existence.

Loyalty has to begin before you attract the new customer or client. The same rules that apply to keeping customers must be firmly in place to attract your perfect customer in the first place.

Rule Number 1: A Life Of Competence Competence means you know what you’re doing. So many entrepreneurs start businesses by the seat of their pants, hoping experience will be that sole master teacher that ushers them into the promised land.

If you have to “wing it” every time a customer asks you a question because you’re not sure you’re right, go back and get an education. Read your trade journals for crying out loud. Take a continuing education course in accounting or management. But don’t represent yourself as being an expert in something you’re not. It spoils your chances for establishing any semblance of rapport with your customer.

Product knowledge is essential today. In a world of media information overload, people don’t know who to believe anymore. If you’re competent let it shine. Show prospects and customers you know what you’re talking about and you’re on your way to winning a loyal following. But that’s not all…

Rule Number 2: A Life Of Innovation You have to be innovative. You can’t rest on your laurels forever and still drive a horse and buggy. Well you can, if you live the simple life in middle Pennsylvania. For the rest of us, technology is changing our world everyday in ways most of us can’t and won’t understand. Ideas are a dime a dozen. Results are more expensive to produce, but yield greater rewards in the long run. Be willing to change, to experiment with new ideas, new offers, new incentives, new technology, new machinery, new seminars and education. Live a life where innovation is the rule, not the exception and your customers will come back to buy whatever you produce.

Rule Number 3: A Life Of Communication We humans don’t have great memories, unless you’ve taken one of those memory courses. (I’ve forgotten the name). Customers have short memories also. What appeared like a great deal or great value a few months ago may seem pale to the warm and friendly letter your competitor just sent your best customer.

You may be an expert at what you’re doing. You may be creative and innovative. But if you don’t communicate these attributes to your customers, they’ll go somewhere else. Plain and simple.

The power of communication is what separates man from animal. The power of speech.

Today, modern technology has made it simple to communicate regularly with customers via e-mail, letters, postcards, faxes, instant messaging, telephone. Yet few small businesses have a system in place to keep in constant contact with customers. To insure loyalty, communicate. There will be plenty of time for silent musings after you’re long gone.

Rule Number 4: A Life Of Customer Service Jim Rohn, America’s foremost business philosopher says, “ If you make a sale, you make a living. If you make an investment in time and good service in a customer, you can make a fortune.”

An old study by the Rockefeller Foundation found that 67% of customers leave a business because of an air of indifference on the part of an employee, manager or owner.

I went to my barbershop the other day. It was early in the morning just as they opened. One of the technicians had a cancellation and was cleaning up to fit me in. Suddenly, my regular barber walked in, not knowing I was next, and said, “ I’ll have to get to you in about an hour, I’ve got other appointments.” I will never let him cut my hair, ever again.

Rule Number 5: A Life Of Consistency A wise old sage once told my wife and I when we were first married. “The key to a good marriage is consistency.” He advised us to go to a romantic restaurant once a week, every week. Enjoy the mood, the warm atmosphere, the elegant service and each other’s company. It will set the tone for the rest of your week and your marriage. Well, I’ve been married now for 33 years and I can tell you honestly that this one piece of advice is responsible for my being happily married for so many years. See, I go to the restaurant on Tuesday nights and she goes on Wednesday nights.

Rule Number 6: A Life Of Honesty There were two applicants applying for a job at a prestigious Fortune 500 corporation. Each was impeccable in his dress, resume and qualifications. One was from the North and one from the South. The interviewer could not decide who to hire because they were both so similar. Finally he decided to test them. They both received the same score – one wrong answer. He still couldn’t decide. After reviewing the answers to the test, he finally decided on the gentleman from the South. The Northern applicant was furious. “What do you mean, we both missed only one question.?”

Yes, said the interviewer. “It wasn’t the number of wrong answers, it was the answer itself.” The hired applicant had put “I don’t know” and you put “I don’t either.”

Rule Number 7: A Life Of Flexibility Winston Churchill said, “Kites fly higher against the wind.”

Successful entrepreneurs know the secret to their success is being flexible. Flexibility means knowing when to give in and when to hold firm. When to give up a product or service you “love” but isn’t selling or when to keep going and never give up. It’s one of the most difficult decisions we have to make. Especially when it comes to dealing with customers. Sometimes you have to fire a customer who is a constant thorn in your side. Other times the customer is always right. Think about the lifetime value of that customer before you upset them with rigid rules and regulations. Be more flexible and keep more customers loyal.

Rule Number 8: A Life Of Being Trustworthy There are four elements of trust, one being “I do what I say I’m going to do, when I say I’m going to do it.” Follow through with customer or client requests. So many companies make promises they know they cannot physically meet, yet to “save” the account they fudge the production schedule a little bit. It’s better to under promise and over deliver. Make that your motto. Take the word TRY out of your vocabulary. It’s a wimpy, negative word. “I’ll trrrrrrrrrry.” Maybe I will and maybe I won’t. Nothing like a little confidence. Even “I’ll do my best” is better. It’s just that your best, better be not just good, but great.

Rule Number 9: A Life Of Integrity Allie Prescott, past President of the Memphis Redbirds, the farm club baseball team of the St. Louis Cardinals said, “There is no such thing as a momentary lapse of integrity.”

Even with all 8 of these life principles, if you don’t constantly maintain your integrity, you’ll spend your entire life wondering who you told what, to cover up that other thing you once said. It’s not a pleasant way to live.

I once farmed out a printing job to a 4 color printing shop. My client defaulted, left town and never paid me. A real shyster. I could have easily said, “my client didn’t pay me, I’m not paying you.” But I didn’t do that. I paid the $4000.00 each month until I paid it off because I didn’t want to ruin my reputation in the community.

Always tell the truth and truth will pay you back handsomely.

For your free copy of the Loyalty Marketing Quick Study Guide, visit www.LoyaltyCoach.com and sign up to receive the popular e-zine, "Remarkable Marketing Results."

The Nine Lives Of Customer Loyalty - To learn more about this author, visit Allan Katz's Website.

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About the Author


Allan Katz
(Visit Allan's Website)
Allan J. Katz is the author of several books on marketing including The Complete Guide to Retail Loyalty Marketing, (loyaltycoach.com/completeguide.php and the Ultimate Marketing System for Dry Cleaners. www.cleanermarketingresults.com. His ezine, “Remarkable Marketing Results,” is read by over 3,500 subscribers each month at LoyaltyCo ach.com. Allan is a "Certified Professional Innovator TM with a keen insight into identifying business opportunities using strong creative intuition coupled with practical, common sense thinking. His unique blend of analytical idea generation and excellent ability to identify the needs and interests of others generates a powerful bond with clients. therainmakersroundtable.com He is former President of the Direct Marketing Association of Memphis. He presents seminars, workshops, lectures and keynotes on loyalty marketing, problem solving, idea generation and persuasive communications. He served as an adjunct professor at the University of Memphis Continuing Education Program on such topics as The Basics Of Direct Marketing, How To Start A Mail Order Business, Marketing Your Small Business and Problem Solving.
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Loyaltyblog - For savvy small business people and entrepreneurs who want solid marketing advice on how to attract new customers and keep them loyal. I'm The Loyalty Coach and my mission in life is to help retailers and service companies attract more customers and keep them loyal through the use of proven marketing techniques & tactics I've perfected for my clients over the past 25 years.
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