Customer Loyalty

The Miracle of the Reservoir

The Miracle of the Reservoir

I grew up in the west and now live in Arizona. There is a simple rule for growing things out here (this rule applies everywhere but is more obvious in the arid west): if it doesn't get water it doesn't grow. Early settlers fought their neighbors over water rights knowing that land without water wasn't worth a plugged nickel. In addition to fighting, they went to work and figured out ways to divert and contain spring runoffs, rainfall and the flow of rivers and creeks to use in dry times. They built dams that created reservoirs then built a network of canals and ditches to get the water to the fields. Wallah! Arid desert became fertile farmlands. Fly over the west today and the benefits of the reservoir and resulting irrigation are obvious in the green irrigation circles that dot the land.

Now think about your marketing and advertising efforts. Paying for advertising can feel like paying somebody to do a rain dance--you're not at all sure what you are going to get. But sometimes there is no choice. So you pay and with some luck some new customers fall from the sky. With a lot of luck maybe a lot of customers fall from the sky. Then comes the moment of truth: do the customers run off like a flash flood leaving only a little green in their path? Or have you built a customer reservoir that they peacefully flow into to be tapped again and again ensuring green for many years to come?

How do you build a customer reservoir? First let's be clear, the reservoir metaphor only goes so far. While it is possible to build a dam to trap water, trying to trap customers is a recipe for disaster. Your goal is not to trap but to create something customers want to be, and remain, a part of. Here are some suggestions:

  1. Be remarkable-Find out what is most important to your customers and then be absolutely amazing at it.

  2. Be inviting-Identify your customers and invite them to be part of something great. Make it easy for them to join.

  3. Be persistent-Make the effort to stay in touch regularly, if you don't someone else will.

  4. Be contagious-Make it easy for your customers to tell their friends about your business.

  5. Be attentive-Ask your customers what they think, listen to what they have to say, and continue to make your business even more remarkable.

The early western settlers learned quickly that without reservoirs they couldn't survive. The same is true of business today, rain dances alone aren't sufficient.

Get customer feedback, generate referrals, and increase repeat sales for as little as $150 a month. Learn more

A Tale of Four Failed Restaurants

A Tale of Four Failed Restaurants
What is the most compelling thing about your business from your customers' perspective? Is it remarkable?

I visited my home town recently and noticed that four, fairly-new restaurants were out of business. Restaurants going out of business is certainly not news--it happens all the time--but these four should have survived and thrived, but didn't.

Case #1: Joe's Crab Shack. Located at perhaps the busiest intersection in the area, Joe's opened just two or three years ago. Joe's is a chain of restaurants. As the name suggests, they serve crab and other seafood in a fish camp atmosphere.

Case #2: Lucky Buns. I believe this was a local entrepreneur's project. Built a beautiful building (see picture) on a nice busy street near a freeway off-ramp. The food was hamburgers and ice cream.

Case #3: Chevy's. Also seemed to have a great location and built a nice building. Chevy's is part of a chain and serves Mexican food.

Case #4: Juanita's. Another Mexican restaurant. Pretty good location in a busy commercial center. They built a very nice building to provide that "old Mexico" feel.

All four restaurants opened with great fanfare and significant crowds. Within a few years they were all closed. Why? I have no inside information. I haven't talked to the owners or any one else, but I have a hunch. In addition to remarkable facilities, good locations, and plenty of publicity they all had one significant thing in common: mediocre food.

I lived in the area when all four restaurants opened. I ate at three of the four exactly once. I never ate at the fourth because I had friends that did and told me it wasn't that great. In the restaurant business location and atmosphere may bring them in, but it is the food that brings them back.

How does it apply if you are not in the restaurant business? Make sure you know what will bring your customers back and then focus on making that aspect of your business remarkable, the rest will take care of itself.

Unhappy customers tell on average 22 other people. If you ticket price is $50 that is $1100 in revenue. How would you like to know before they tell 22 others? Learn more

Will Your Customers Carry a Cello?

Will Your Customers Carry a Cello?

I read recently about a musician--a cello player to be exact--that moved to New York City. She didn't know anyone in the city and was looking for opportunities to play her cello. Her solution? She carried her cello around the streets of New York with her wherever she went--whether she needed it or not. It didn't take long before other musicians introduced themselves and she was given opportunities to play.

That got me to thinking, what could I carry around to let people know what I do? Even more powerful, what would my promoting customers be willing to carry around to let others know how they feel about my business?

Customers who feel that you are listening to them are more likely to recommend you to a friend. How do your customers know that you are listening? Learn more

Is your company remarkable? Is that good?

Is your company remarkable? Is that good?

On the company the effect is like being assimilated into the Borg, but for users of their software it's like having a friend with a malignant brain tumor. You're going to have to say "goodbye" soon to an object of your affection.

I'm talking about the affect that Microsoft has on software when they purchase the company that makes it. Two cases that come to mind are PowerPoint and VirtualPC. Now there's another candidate, iView MediaPro. iView announced yesterday the assimilation. Maybe iView will be an exception. They have made remarkably great software for a decade or so. I love what they do.

Dang!

Being remarkable is important to a business. Make sure your business is on the right side of the "remarkable" scale.

Find your happy customers and put a megaphone in their hand. Learn more

The Power of Staying in Touch

The Power of Staying in Touch

In the cluttered marketplace we compete in, I don't think the power (and necessity) of staying in touch can be overemphasized. I learned the lesson again last week--thankfully in a good way. It had been a while since I had heard from one of our clients at PromoterZ and so I sent him an email and invited him to go to lunch. We had a nice chat, I asked for feedback on our service and he had a few suggestions (I'm happy to note that we followed through on them). I ran a new idea we're working on past him. He liked the idea and agreed to let us test it with his customers. Then he mentioned that their franchising operation is taking off (looking for a good franchise opportunity? Check out Entrees Made Easy) and there might be an opportunity for me to tell some of their new franchisees about PromoterZ. Turns out the timing was perfect, and I'm scheduled to present to some of their new franchisees next week on how to turn customers into promoters.

So what did I get for my $30? Our product, PromoterZ, is now better thanks to his feedback, we have a place to test our new concept (more on that in future posts), and I have the opportunity to tell new franchise owners how much PromoterZ has helped Entrees Made Easy. Where else could I have got that kind of return on my money? Thanks Brandon!

They say it costs 5 to 10 times more to sell to new customers than it does to sell more to current customers, and yet what percent of our effort is spent looking for new customers vs. pleasing and staying in touch with our current customers? I was able to take Brandon to lunch, but that is not always geographically possible. A phone call works great. It can be as simple as, "how are things going?" Use technology where you can. Without exception, each time we send out our newsletter we get one or two phone calls from customers--they had been meaning to call but never got around to it until the newsletter arrived in their inbox. Here are a few other ideas:

• Send 1st timer customers a special thank you
• Send birthday greetings
• Send a newsletter
• Send Holiday greetings (Did you know today is Chocolate Eclair Day?)
• Send thank you notes

Finding new customers is tough and expensive. Once you've got a customer, hold on to them by staying in touch. I can guarantee you if you don't, somebody else will.

Unhappy customers tell on average 22 other people. If you ticket price is $50 that is $1100 in revenue. How would you like to know before they tell 22 others? Learn more
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