How to Lose a Customer

Recently, I attempted to purchase a dress from a maternity store. Before I could give them my money, they required my due date, e-mail, mailing address, phone number and wanted to know if I had other children. I laughed out loud, but the woman’s puckered face quickly showed she wasn’t joking. I explained that I didn’t want to be put on a mailing list and thought it was beyond invasive. She “patiently” explained it was necessary in case of returns.

They lost me forever at that moment. Not only did I give them fake information, but I was extremely offended that the store I was paying would require all this information. I would never go back in there, nor will I ever purchase anything for any of my friends/family again. I also spread the word about this outrageous privacy invasion, which turned off other mothers to be (a.k.a. their customers).

Requiring information from customers only works if they see an overt benefit—something that will make them want to hand over those treasured nuggets of marketing gold. Not only did they ask about my children, but I was in essence paying to be harassed. The only benefits I got were a cute, but probably over-priced, dress and a red face from anger.

That’s the key lesson for marketers and businesses. People are willing to let you into their lives and buying habits, but you need to reward them and slowly dip your toes into that pool. Plus, the bigger the prize, the more you will get from them. No one will give you their life story for a throwaway trinket like a pen or key chain. And the more the customer feels forced to give information, the less likely it will be valid or worth the sales you just lost.

What do customers expect from you as a business owner?

The simple answer is everyone wants to be your number one client. Customers expect to receive quick, accurate attention no matter what else you may have going on. They also expect to get the best deals and inside scoop on specials.

So how do you make everyone feel like the number one client? That is a mystery I don’t think anyone can ever fully answer. The best you can do is take steps to ensure timely and personal responses.

First, prioritize your customers into A, B, C categories. While you should try to make everyone feel acknowledged, don’t let C customers suck up all your time. You can’t get blood from a stone, and there are some people who will never buy more than a certain level. Secondly, delegate as much as you can. Split up the categories amongst employees to ensure no one has all good or bad customers. Or, if you are the employee base, try to devote specific days to check in with clients.

Tier your communications. You can create a VIP e-mail or direct mail database that gives them advance notice of new products/services, sales, or blow-out specials. Keep others just in loop about new products. Also, use free resources that are available—like Gold Medal’s profit-making guides—as a thank you or an added bonus to customers who make large purchases.

Another way to make them feel special and want to come back to your business is to recommend something that will make them money and is geared specifically to their business. Plus, sometimes you just need to pick up the phone and see how they are doing. Don’t start out with a sales pitch. Just check in, then softly remind them that you look forward to talking with them soon and are there to help. Work in any facts you remember from a previous conversation like a child’s graduation, a promotion, or talk about their favorite sports team.

In the end, some customers will want more time than you can give. You may need to follow the 80/20 rule, but you should always strive to make them feel satisfied and get as much as possible from every interaction.

Customer Service Is Important Now More Than Ever

In the current economy customer service is more important than ever. Customers simply will not do business with anything less than exceptional services do to the wide array of choices they have to pick from.

Bad customer service can lead to that person relating their individual story to their friends or even worse posting their bad experience on the Internet in a group forum that has frequent traffic. This can lead to a heavy decline in sales and maybe even eventually going out of business.

On the other hand, if you deliver quality, timely and superior service this will lead to sales growth and ensure consumer confidence. This type of service will make your current customers firmly entrenched with your company and new customers less likely to shop around for other avenues to purchase goods. It is always easier to keep and properly service and grow current customers than to search for new ones.

US News and World Report did a study and found that the average American business loses 15% of its customer base each year.

• 68% of customers who stop buying from one business and go to another do so because of poor or indifferent service.


• 14% leave because of an unsatisfactorily resolved dispute or complaint.


• 9% leave because of price.


• 5% go elsewhere based on a recommendation.


• 1% dies.


• 82% goes somewhere else because of a customer service issue!

The two most striking points are that only 9% leave due to price and 82% because of service! This is great news for dealers concerned about price, because you can increase your revenue by simply retaining and keeping your current customers happy and satisfied with your service.

Post written by: Jeremy Carle Zone Manager @ Gold Medal Products^® Co.

The Mistake That Can Kill Your Business

Too many times, as entrepreneurs, we get consumed with trying to do it all. We cram in one more email, one more blog post, one more sneak peek at Facebook or Twitter. We stay up late into the night tweaking one more ad, putting one more image on our website, or adding one more item to our to-do list. Sound familiar?

And pretty quickly, we go into overwhelm mode, where we’re busy putting out fires instead of believing in ourselves. We begin to crumble under the weight of our growing business, and we lose ourselves in escapism. We focus on only what has to be done today instead of looking forward to tomorrow, and we’re just relieved when our inbox finally gets to zero.

But is that what really matters most? Our inbox getting to zero? All those piddly things getting done?

No.

What matters most is to keep moving forward with our business. To block out the tidal wave of new emails, new Tweets, and “one more thing” and to remember, instead, to create every day. To bring something new into the world.

Do Phone Calls Beat Social Media?

Recently, there has been a lot of chatter about the best way to reach your customers. Some claim the speed and instant gratification of Twitter and Facebook are the best way to handle PR and respond to clients. Others angrily shout true customer service can only be given with human contact.

While both have their pros and cons, you must use your best judgment on how to respond to customers. For example, social media is great way to promote upcoming sales, events, and generally keep your customers informed. But nothing can beat the calming, effective way of diffusing a problem one-on-one.

Or, consider combining the two for the best results. Shout good news from the mountain tops with Twitter teases and phone calls to your best customers. Or, if you are trying to turn a prospect, lead with your accomplishments on the call.

Lastly, you can test out what works best for your market. Offer a specific deal for FB and Twitter followers, then a separate one to only those customers who you speak with on the phone or in the office. Assign each one a specific code and track what gets the best results.

Whatever you do, do not to put all your eggs in one basket. There isn’t an exact science to the perfect customer service. People will respond to different campaigns and may turn to another business if you don’t offer options.

Let us know what you think?