Sorry it’s been too long since our last post but we have been busy doing seminars. We hope to update our blog a little more frequently.
I was on linked in yesterday and saw a discussion started with a question on what are people using as attributes to enhance their “Customer Loyalty Strategy”. I was a little surprised by some of the responses. The idea of customer loyalty seems to be some card you keep on your key chain or a reward you give your employee for taking care of a customer. From the responses I read I have come to the conclusion that these programs are not too successful. That should come as no surprise!
Customer Loyalty is not today’s program in hopes of driving repeat business. Customer Loyalty is the ability of your employees to make that emotional connection with a customer. So how do we define an emotional connection? An emotional connection is different for every individual. It is the connection with a customer that is deeper than just meeting the expectation. That is what the competition does. It’s going beyond that! So how do you teach it? You can’t! It’s a development process that starts with the culture of your business. It starts with the business owner and trickles down to all the employees.
An example of that emotional connection can be a visit to a restaurant. You can go to the restaurant have a quality meal,pay a fair price and leave without a bad experience. The restaurant was successful satisfying you, nothing more,nothing less. Will that experience drive you back for a future visit? Maybe. Let’s say you go to that same restaurant and you run into a server that is really good with people. Starts up a conversation makes you feel relaxed,recommends an exceptional meal, the complete experience is beyond belief. When you’re on your way out the door getting in your car you just say to yourself, WOW! That is what drives customer loyalty!
The next time you make a decision of where to dine where do you think you are going? Back to the same restaurant and you’ll probably ask for the same server! That is how you can get a Loyalty Strategy in your business. Loyalty is built by having a Loyalty strategy built in your Strategic Plan, a Loyalty Strategy within your leadership, A Loyalty process and Loyal employees. When looking at your business these all need to be developed and implemented.
Why should a business owner pay so much attention to developing this strategy? According to Fred Reichold author of “The Ultimate Question,” a 5% improvement in customer retention can improve profits up to 100%. The best way to improve customer retention is by developing a Loyalty Strategy.
Loyalty Solutions is getting ready to launch Customer Loyalty Seminars in June. We’ll have more information to follow. If you would like to get more details feel free to contact either Bill Griffith at firstname.lastname@example.org or Jeff Johnstone at email@example.com or Ocie Irons at firstname.lastname@example.org.
Loyalty Seminar II :
Measuring Customer Loyalty
“The greater the loyalty of a group toward the
group, the greater is the motivation among the members to achieve the goals of
the group, and the greater the probability that the group will achieve its
goals.”– Rensis Likert –
How do you measure Customer Loyalty?
Key Measurements for Building a Loyal Customer Base
workshop focuses on:
- How does your organization measure CUSTOMER LOYALTY?
- Why is it important to know your LOYALTY FACTOR SCORE?
- What is your LOYALTY FACTOR SCORE?
- Why is it important to know your EMPLOYEE LOYALTY SCORE?
- What is your EMPLOYEE LOYALTY SCORE?
Loyalty Solutions Seminar April 5th at
44625 Schoenherr Rd.
Sterling Heights MI. 48313
8:00 AM until 11:00
$50.00 Payable at the door
Please RSVP to Bill Griffith At email@example.com or 586-431-9311
Starts: TuesdayMarch 15,2011, 08:00AM EDT
Ends: Tuesday March 15,2011 11:00AM EDT
Event Type: Training/Seminar
Location: Heritage Church
44625 Schoenherr Rd
Sterling Heights, MI 48313 US
Price: $50 in advance ($55 at the door)
Keywords: customer satisfaction, customer loyalty, business
Intended For: Business owners, Executives, General Manager, CEO, Director of Marketing, COO, Customer Service Manager
Organization: Loyalty Solutions
Developing a Customer Loyalty Strategy This workshop focuses on: Customer Satisfaction vs. Customer Loyalty, Perceived Value as defined by Customers, Why your company would want loyal customers, Customer Loyalty Strategy.
$50 in advance, $55 at the door. To register contact Bill Griffith at (586) 431-9311 or firstname.lastname@example.org.
Workshop presented by Loyalty Solutions, a collaborative effort of Goal Advantage, Ironbridge Development, and WJG Business Concepts
Posted: 09 Feb 2011 05:25 AM PST
Excellent customer service providers are in tune with the emotions of the people they deal with through awareness and empathy. They’re proficient at handling conflicts, and they have the ability to maintain positive attitudes while engaged in their work. However, a continual barrage of negative customer interactions can be a reality within the role of service providers, and they can cause what is commonly called emotional labor.
Arlie Hochschild, author of The Managed Heart: Communication of Human Feeling, defines emotional labor as displaying a set of emotions that differ from the emotions the service provider is currently feeling. Based on this definition, people in service jobs who are acting differently than they are feeling can experience high doses of emotional labor which can cause stress, fatigue, and diminished impulse control.
Service providers deal with a higher level of stress no matter what product or service they provide due to the fact that customer interactions are always fueled with many types of emotions. Stress is a physical reaction that you experience when you cannot cope or have difficulty dealing with a negative or threatening situation. Due to the direct connection between a service provider’s role and stressful situation, learning how to understand, manage, and reduce stress becomes an important skill to master.
In the book Stress Management for Dummies, author Allen Elkin cites:
7 out 19 people felt stress at some point on a typical workday.
People reported that they lost their temper an average of 5 times a month.
Many people reported that stress contributes to doing things they regret later.
About 5% of those asked said stress was preventing them from enjoying their lives.
People under stress tend to be more on edge and will erupt more quickly and violently, increasing their number of conflicts with people in general. Extreme stress saps your energy because your body is functioning in emergency mode. Stress tightens your muscles, impacts your breathing and the flow of oxygen to your vital organs, and it can cause sleep to be difficult. High stress can put a strain on many of your bodily functions and can lead to high blood pressure, ulcers, and heart attacks. It can become a vicious cycle. Obviously, reducing stress can have many health benefits as well as making your life more enjoyable and rewarding. It is important to identify what pushes your buttons and produces stress in your life. Identifying your stress producers is the first step in effectively managing and reducing stress.
In order to effectively manage stress, you must build or increase your tolerance for stress. Stress management is your ability to deal effectively with adverse events and stressful situations without falling apart. Having a positive outlook on new experiences and change is also important. Plus the ability to stay calm and maintain control in stressful situations is a large part of building an increased tolerance level. People who excel at stress management tend to face crises and problems head on with a positive attitude rather than surrendering to feelings of helplessness, hopelessness, and self-doubt.
The first step is to understand where the stress is coming from or what events are activating the stressful feelings you are experiencing. Check out next week’s blog for more on reducing and eliminating stress.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses and individuals achieve high levels of excellence and success. Learn how at http://www.resourceassociatescorp.com
Loyalty Solutions seeks to educate organizations about Customer Loyalty…What it is, Its value to the organization, and How it is measured. We also work one-on-one with clients to create specific strategies to improve customer loyalty. We work with the organization to develop customer focused processes and employees committed to creating memorable customer experiences. The result; increased customer retention, increased word of mouth referrals, lower employee turnover, lower costs, thus increase profits.
Loyalty Solutions is a collaboration of Goal Advantage, Ironbridge Development, and WJG Business Concepts. We have over 70 years of combined experience helping large and small companies achieve improved results by improving operational efficiencies, developing human capital, and providing strategic thought.
Please leave your contact information if you are interested in learning more about how Loyalty Solutions can help your organization increase customer loyalty…and profits (or donations). Check back (or check the box) for blog updates and seminar schedules.
Posted: 29 Sep 2010 06:46 AM PDT
According to Jeffrey Gitomer author of Customer Satisfaction is Worthless: Customer Loyalty is Priceless, the answer is very clear. “Satisfaction is no longer an acceptable measurement of customer service success.
The standard and measure of success in this millennium are loyal customers.” The Gallop Organization’s research also concludes that no matter how satisfied an organization thinks its customers are, if they haven’t made an emotional connection with their customers to develop a long-term relationship, satisfaction will ultimately be worthless. Satisfaction alone does not build a strong loyal customer relationship.
It is difficult to focus on loyalty when, as standard practice, most organizations seem to settle for satisfied customers. Satisfaction is a measurement of mediocrity. When a customer indicates, “I am satisfied”, it can usually be translated to mean the service experience wasn’t bad, however, it also was not exceptional. Satisfied customers are certainly better than disgruntled customers, but, building a loyal relationship is a must for long-term success. The key difference between loyalty and satisfaction is that customer satisfaction scores fail to predict how customers will actually behave relative to future purchases of your product or service. They may or may not return. On the other hand, loyal customers will consistently buy from you. By definition, loyal customers always come back to purchase repeatedly, which in turn produces a much longer and stronger income stream. The larger the loyal customer base, the greater your organization’s long- term success.
Economically, the best strategy for your organization is to pursue the creation and retention of loyal customers. This strategic initiative can and will separate your organization from the competition. Let’s face it, service today is mediocre in most organizations. Your organization can achieve a competitive distinction by developing a strategy of creating loyal customers. It has been proven that organizations with high levels of loyal customers typically grow revenues at twice the rate of their competition. However, the strategy of developing loyal customers must become a part of the organization’s culture and ingrained throughout. Since the culture of an organization will always drive the behavior of the people who work within the organization, people will behave differently if the culture is entirely profit driven. In this culture, people will do whatever they have to in order to produce profit, often times at the expense of the customer. This short-term thinking is an organizational disaster waiting to happen.
If the culture and strategy of the organization is to develop and retain loyal customers, then the contributors within the organization will focus on what they need to do to create loyal customers. Needless to say, in a culture that promotes customer loyalty, the entire organization must be devoted to valuing both customers and fellow employees who are often referred to as internal customers. Bill Marriott Sr. was noted for saying, “The way you treat your employees is the way they will treat the guest.”
When implementing a competitive strategy that deals with loyalty also take note that the customer experience needs to be aligned with organizational promises. When the customer’s experience is not reflective of what has been advertised, promised, or expected, the customer’s trust in the organization is undermined resulting in many lost revenue opportunities. Therefore, there is an urgent need to create strong relationships through frequent points of connection, and deliver unique service experiences as expected and promised by the organization’s marketing and advertising. The immediate impact of delivering an exceptional experience based on what is promised is a winning combination and a powerful weapon against your competition.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses achieve high levels of excellence and success by adopting customer loyalty strategies as a critical success factor of organizational success. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.