Building Customer Loyalty

The salespeople are directly in contact with the customers so they can obtain information from the market which will be helpful to the organization. Since personal selling involves face to face interaction with the prospect a salesperson is in a position to gather information from them. The information may be about the product, organization, competitors, likes and dislikes, complain about the product etc. This information is of use to the organization as they can plan their selling strategy accordingly.

There are three main pieces that need to be in place to have an effective Feedback System:

Mechanism for Feedback (i.e. complaint cards or a form)

• The feedback from the customers can be taken by asking them to fill up a form, or salesperson can, after interacting with them fill up a form. The mechanism for feedback should be an easy and short process for a customer. Customers are unlikely to fill out a long form.

 Feedback Loop

• The feedback loop should be a defined process that allows the feedback from the customer to get in front of managers and decision makers. The importance of feedback lies in the fact that message should reach higher levels so that actions can be taken.
• Corrective Action
• The corrective action should be the “fix” that is being instituted to correct the gaps in customer service that have been identified i.e. depending upon the customers response measures are taken to satisfy them.

 Sales persons should

• Ask customers what about your organization is most important to them ® create a position that meets those needs.
• Ask about attitudes toward styles and models

Extent of brand loyalty

Willingness to pay a premium for superior quality

• Formulate a selling strategy around one simple factor that is important to customers and sets you apart
• The differentiating idea may be product, service, or channel related
• Keep an eye on how the competitors are positioning their companies

 Below is some truth about customers

• Your organization chart is of no interest
• They do not care about your problems
• The fact that you are “trying hard” has no impact
• They are self-centered
• They always notice bad service
• Giving good service only counts if the customer thinks it’s good service
• You must almost always ask to get feedback
• Customer loyalty is fragile and fleeting
• Most bad attitudes are communicated by the wrong tone of voice
• Dissatisfied customers tell up to 20 people about poor service

Therefore it is important for sales people to get customer feedback. They should provide after sale service in order to satisfy the customer.

Using the Feedback

Collecting information and feedback is the easy part. But actually using it and implementing it is the key to being successful.

To apply the information:

• Identify issues that need to change
• Come up with solutions for change
• Implement the solution for change
• Check up to see if solution is working
• If not, find another solution!

Remember the more feedback you use, the more success you will have.

All forms of feedback are helpful, so when using them, try to use more than just one kind of feedback to ensure and increase the chances of success.

Benefits of Using Feedback

• Increases sales
• Knowing what is important to your customers; and what they really want and like. Makes your job easier
• Guarantees Continuous improvement of overall service and production
• Creates loyal, enthusiastic, and happy customers
• Making positive changes over time Keeps employee moral up
• Ensures good product development.
• Creates a competitive advantage.

Dr. Ted Levitt, senior professor at Harvard Business School says that the function of every business is to get and keep customers. Consequently, it is also the function of every employee of every business to do the same. Knowing how to keep existing customers happy is key to a company’s continued success.

Studies have also proven that it is much more expensive to attract a new customer to a business than to keep an existing one.

So, what can we do to build customer loyalty — to get that customer to come back again and again? Here are six universal points that will apply to any type of business.

Don’ t ever forget to say THANKS!

It can be face to face, over the phone or via written thank you notes. Customers like to feel appreciated. Recently I bought some clothes from a local retail store. Just a few days later I opened my mail and found a thank you note from my salesman. Was I impressed? You bet. Will I go back? You bet. And, when I do, I will be looking for my salesman.

Find out if you are doing a good job, and if there are problems react quickly. By the way, your customers will not likely tell you if there are problems. Numerous studies have shown that complaining customers don’t complain. TARP (Technical Assistance Research Program) was commissioned by the White House Office of Consumer Affairs to survey customer satisfaction. They found that an average business only hears from 4% of unhappy customers. The other 96% don’t complain — at least not to the places they did business. While the study was conducted a number of years ago, current independent studies still show similar findings. Your ultimate goal should be to try and find any problems before the customer complains. The best way is for you to simply ask how you are doing.

Make sure the customer knows they made the right decision to do business with you. Educate and reinforce that they have made a good choice. If you do something different than the competition, make sure the customer knows about it. I remember buying meat from a grocery store. The butcher proudly held up the steak he was selling me and said, “Look at that! Is that a beautiful piece of meat or what? Did you know that we trim the fat around the steak to just 1/8 of an inch. You won’t find that at the competition! Thanks for shopping with us.” These competitive differences need to be emphasized. It is your opportunity to stand out.

Guarantee your products and/or services. Personally, stand behind everything you do. A customer doesn’t do business with a company. They do business with the people who represent the company. And, make sure the customer knows you mean it. If there is a problem, don’t just push it off to someone else, better referred to as the It’s Not My Department reaction. If a customer has a problem, and you are the person that received it, it is your responsibility to see it through. You may not make the final decision, but you are there at the end when it is made.

Recognize that there may be others in the “buying process” that should be made to feel appreciated. These people might also be involved in the buying process, such as an assistant, a secretary or even a committee, but may not be the person or people you are dealing with day to day. Even if the assistant or secretary is not involved in the buying decision, they are still part of the team. Don’t forget to show appreciation for these people as well.

Create a demanding customer. Now, here is an interesting concept! Creating a demanding customer means that if your customer were to go to your competition, they would not just expect, but demand, the same level of service that they get from you. Anything less from the competition reinforces that the customer made the right choice to do business with you. In other words, you have spoiled your customer. What may be standard for you is better than the competition. The competition will find your customer to be not just demanding, but perhaps a bit unreasonable.