The Road to Customer Loyalty: Paved with World Class Service - FROM BUD HANEY'S DESK

"He profits most who serves best."
-Arthur F. Sheldon

I wanted to learn why some customers are loyal and others aren't. What makes some keep coming back to your business week after week, year after year? And what can be done to encourage that kind of behaviour?

As we all know, when you can get an employee to give what's known as their "discretionary effort" - that little bit that goes above and beyond - not only can a business do more with less in tough times, but customers see that extra effort, they appreciate it, and it encourages them to come back.

Customer loyalty pitfalls
I want to take a few minutes to outline a few things we already know will kill customer loyalty. Based on our research and our work with many of America's Most Productive Companies, here are five sure-fire ways to stifle customer loyalty:

1. Don't Listen to a Word They Say
Customers complain because they want to be heard. So when they talk, if you really want them to know you don't care, go ahead and check your Blackberry instead of giving the customer 100% of your attention. If there are a lot details, don't take notes or the customer may think you're listening. And above all, when they finish vocalising their complaints, do not repeat anything back to them. Otherwise they'll think you understand their issue and plan to do something about it.

2. Never Apologise
Ever listen to a typical politician apologise? "I'm sorry that happened," they'll say. Or "Mistakes were made." Or "I'm so sorry you feel that way." Everyone knows those are piecrust apologies that crumble at the first touch. An actual apology takes responsibility - if not for what went wrong, then at least for making it right. When a customer complains, the best thing to do after listening sincerely is apologise sincerely. "I'm sorry if you feel that way" isn't an apology and it might make a customer with a legitimate gripe even angrier. Instead be genuine. "I'm sorry this happened and I understand how you feel. Please know that I take responsibility for making things right."

3. Thank Yourself, Not the Complainer
Do you really want to wipe out customer loyalty? If so, when a customer has a complaint, if you don't listen and you don't apologise, that's just a start. Many complaints contain valuable information from a customer's perspective. What better way to learn how to improve your business? So, be sure to congratulate yourself on obtaining helpful new information. But never let the customer catch you appreciating their time or their insights. After all, that person's just a complainer!

4. Offer Only a Generic Consolation
Want to make an angry customer even angrier? When offering a consolation, be as nonspecific as possible. Whatever the complaint was, take 10% of the bill. Or offer a free meal. Or a 10% discount next time the customer comes in. But whatever you do, don't ask any specifics and don't make the consolation fit the complaint. If you dig down and find out what the problem is, then you address it in a meaningful way, the customer will tend to appreciate your service and give you their repeat business - if that's what you really want.

5. Follow-up is for the birds
After you fix the problem, if you are able to reach out to the customer or customers who complained, don't! Not if you want to keep them away. If you tell them how much you appreciate their help you will be gaining a lot of credibility and demonstrating how excellent customer service can happen even after "mistakes were made." Gaining customer loyalty isn't always a matter of doing everything right. Sometimes it's about how you handle things when they go wrong. Follow-ups show you care.

Of course, if it's customer loyalty you're after, make sure you do the opposite of steps one through five. Every customer complaint is an opportunity to improve your business - but only if you see it that way! Even when a customer is angry, he or she is still being generous with their time. Right? So be sure to listen. Let them know you appreciate their feedback, even if it's hard to face. When you say you're sorry, don't equivocate. Mean it! Try to make the consolation fit the grievance. And when you're done, take a little time to follow-up.

There are no big secrets to building customer loyalty. It's a pretty old-fashioned, low-tech operation. Customer complaints need not ruin your day or even hurt your business. In fact, when handled right, customer complaints can drive loyalty and repeat business!

Sincerely,     

Bud Haney, President Profiles International