Tuesday, May 3, 2011

How to Turn Customers Into Raving Fans (Increase Business/ Profits)

I recently read the book “Raving Fans” by Ken Blanchard in order to get a better idea of how I could deliver better customer service to customers like yourself. After reading the book, which is relatively short, I realized that not only could I benefit from the customer service philosophy in book, but that it could also be helpful for you as a small business owner. I think we can all agree that it has not been easy to keep and grow your customer base in the last three years. That being said I wanted to share a few key points from the book that may help you increase your business and customer loyalty. Here is a summary of what the book covers:

The Big Idea 
Ken Blanchard, author of The One Minute Manager and Sheldon Bowles assert that customers have long been neglected and abused by companies that they have developed very low expectations. Despite unfulfilled promises from companies, cold treatment from staff, long waits, and delayed return calls by customer service desks, customers rarely complain and keep coming back to your business, provided your competitors are not doing any better than you.
What businesses need are not “satisfied” customers who will do business with you only until a better competitor comes along. To convert satisfied customers to ”raving fans” for your business, you have to decide what you want your company to be, discover your client’s needs and deliver consistently on your promises.
“Satisfied” Customers
Customers have awful experiences with companies. Services are so bad that people expect bad goods and rude service, flight delays from airlines, late deliveries, lost orders, etc. However, they rarely complain. Check out the for example a restaurant’s suggestion box and it’s empty. Customer surveys too, say clients are “satisfied”.

THREE SECRETS TO “RAVING FANS”
Secret No.1 - DECIDE WHAT YOU WANT
Remember that you are the source. Create a “vision” of perfection centered on the customer. Imagine the “perfect” service you want to give, the “perfect” bank, law firm, deli, airline etc. for your customers. That perfect vision is your goal.
  • Make it easier for customers to do business with you e.g. Advertise discounts, put up information kiosks, use websites and other technologies to help customers shop, etc.
  • Make doing business with you a warm and pleasant experience for your customer. Train staff to be attentive, warm, and knowledgeable so customers feel they have good value for their money. Offer free coffee, warm greetings, and clean restrooms. Make customers feel happy to come back for more.
  • Think “how can I not afford” to do these things instead of “how can I afford to do these” for the customers.

    On deciding what you want to become for your customer remember to
  • Communicate your vision to the rest of you’re company, staff or team and to your customers. Tie up your company’s bonuses, internal metrics, promotions and performance evaluations with your customer service.
  • Look after your employees. Don’t expect your employees to look after your customers if you don’t look after them. Train them to be “good” to your customers.
  • Know when to ignore what customers want. Don’t try to give them everything, all at once. It doesn’t work. Look after the needs of your customer only within the limits of your vision.
  • Focus on constantly achieving your vision.
Secret No. 2 – DISCOVER WHAT YOUR CUSTOMERS WANT
Knowing what you want first helps you understand what your customers want. Imagine an airline wanting to be the best carrier in the whole world and then trying to reach out to flyers around the world without first deciding whether it will be a long haul, international long-haul carrier or a domestic, “no-frills”, low-cost provider.
Know who are your customers. Then, after finding who they are, discover what they want, their vision. Normally, customers focus only on two or three needs. Focus on those needs. Because you know what concerns them, it is easy to match your vision with theirs.
Listen to your Customers
  • Listen to what they say.
  • Listen to what they don’t say.
Listen closely to what your customers say. First, customers may say one thing but mean another, e.g. clients say they like your low prices but whose actual priorities are on-time deliveries and perfect quality.
Second, listen to your “silent” customers. Your service may be so bad that customers feel unwanted; they don’t even bother to complain. What’s worse, they may leave your company even without any viable competitor to take your place.
Finally, listen to those who say “Fine”. Customers have been so accustomed to bad service that they rarely complain, and worse, reply “fine” or “satisfied” even when they mean the soup was cold, the line was too slow and long, etc. They are satisfied because they think nothing will happen anyway if they complain.
Ask your Customers Sincerely
So how do you listen to the customer who isn’t talking? Or to the ones who say “Fine” or “Okay”?
  • Start asking sincere questions. Past experiences have taught customers that chances are, you don’t really want to know what they think or feel, that their complaints will be left unheard.
  • Win their confidence. Take time to get a conversation going. Customers can sense that you are serious, only then will they open up to you.
A Raving Fan’s customer relationship goes beyond your company’s product or service. If you don’t listen to your customers’ thoughts and feelings, you fail to give him what he need because you simply don’t know what that is. Furthermore, you reject him as a person, that his thoughts have no value.
More than just a Product or Service
People have needs beyond the need for a product or a service. People need to feel that they belong to a group. People need to feel important. More than just customers and your company, it is actually people and people. You serve your clients. Second, you ask their thoughts and opinions. In other words, you treat them as human beings.

Know When to Ignore
This may sound heretical to great customer service but learn to ignore what customers want if they do not match your vision. Obviously, it would be very difficult for you to say, design the best sports car if you’d also want it to be the best off-road or family minivan. When it comes to customer service, those who aim and try to be everything for everybody all at the same time, fail.
If your visions do not meet, ask your customer to take his needs somewhere else to be fulfilled.

Secret No. 3 – Deliver Plus One
To create a raving fan you need to exceed on delivery of your customer service promise each and every time the customer deals with you, the customer needs to believe that they can count on you again and again. Consistency creates credibility.
Start by making small changes to your current customer service model and gradually build on these changes, this way you will be able to achieve consistency of service.
To achieve this level of consistency you will need systems, training, alignment between your vision and pay/promotion, these systems are required to build your vision in to the sole of the company.
Customer expectations don’t remain static so be prepared to continually enhance your vision

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