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Communicating with Your Clients Throughout This Challenge

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Clients want to hear you’re a leader. They want to hear from the owner of the business they rely on. They want to see your character and your values come shining through. They want to feel your empathy for their situation. They want to trust you. They want to hear your confidence and transparency. They want to hear that we’re all in this together.

  • So tell them you care about your employees and how you’re prioritizing their welfare and protecting them and their families. Phrase it so the clients know that the employees will be there for the clients when the crisis abates.
  • Show them through an example that you know something about what they’re going through. Be caring and empathetic.
  • Tell them what’s going on with your business and in your industry that impacts them and what you’re doing about itwhat they can expect.
  • Give them helpful information or resources that bring them value. They’ll remember where they got it.
  • Keep in touch to stay top of mind. Send short messages every so often to keep them informed and to let them know you care.

In the financial crisis of 2008-2009 the businesses that continued to market to their client/prospect base saw a faster comeback than those that stopped communicating. What you do now creates your resiliency. Stay in communication. It’s worth the investment. You're invited to join in a daily 1/2 hour zoom conversation where business owners/leaders can talk, get resources, hear ideas from each other, share what’s working, feel not so alone, get help from others on how to adapt, give help and empathy to others, destress.

  • Every weekday at 3pm EDT for the foreseeable future.
  • No signups, totally free. Just show up and tell us what’s on your mind.
  • Video: https://zoom.us/j/3065371681
  • Audio: +1 646 558 8656 (US Toll) or +1 408 638 0968 (US Toll),
  • Meeting ID: 306 537 1681

Is a Repeat Customer a Loyal Customer?

Aren’t Repeat Clients the Same as Loyal Clients?   -   Most definitely not! What’s the difference?

customer loyaltySuppose you lived in an urban area where there were multiple stores. About a block from where you live there is a dry cleaning business. It’s convenient because it’s so close. The people there are fairly friendly and their prices are ok. So you bring your dry cleaning to their business.

But then one day another dry cleaning place moves in down the streetanother block away, so it’s not as convenient. And they charge a dollar more. However, they use all natural organic cleaning chemicals and it’s important to you that you support natural organic processes. You believe in a sustainable planet and are happy to frequent a business that believes that as well. So you change dry cleaners. You want to give your business to someone who believes what you believe. It’s easy to leave the last place.

But then a few months later another dry cleaner opens. This is even a few more blocks away. They charge more than the last place you went. They also use organic products in their cleaning process so they share your mission to create a sustainable world. However, they go a step further. Every time you go in, you feel like you just came into a party where you are the guest of honor. They know your name, they remember the special things you want done to the special outfits you have. They adjust their schedule to meet yours. They introduce you to other people who come into the shop. They care and really listen when they ask about your pets, kids, vacations, holiday plans. They consider you special and unique. They are happy and upbeat. Every time you go there, you leave feeling like they just made your day and your stress level has been lowered. You tell all your neighbors about this new place and how wonderful it is to go there. You want the business to do well so it sticks around. You care about their success and become a raving fan loyal client.

At the first dry cleaner, it was convenient and nothing was wrong. It just wasn’t engaging enough for you to become a raving fan. Another competitor easily attracted your business. At the second place you shared their vision and you were more invested in how they were accomplishing the outcome.  In the third place on top of clean clothes and sharing a vision of a clean planet, you were able to connect human to human in a caring and empathetic way.  It was these other segments of the customer experience that made you into a raving fan and promoter of their business. It turned you from a repeat client to loyal client.

What does this mean for your business?

Loyal customers are the back bone of your company. Even an increase in only 5% in customer loyalty can drop more that 25% to your bottom line (for more information on why this is true, download my free report at http://danceofbusiness.com/drivingir/freebies )

How can you distinguish if your repeat clients and customers are just repeaters or actually loyal raving fans? You can ask them.

The ‘ultimate question’ identified by Frederick Reichheld (author “The Loyalty Effect” and “The Ultimate Question”) is:

 ‘On a scale of 1-10, how likely is it that you would recommend us to a friend?’ 

This yields a net promoter score (NPS). A score of 9 or 10 identifies a loyal client or ‘promoter’ customer. A score of 7-8 is considered a ‘passive’ client, probably a repeat client and but can still be taken away by astute competition. A score of 6 or below is considered a ‘detractor’ and has no loyalty at all. He’s just buying from you occasionally because of convenience. The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.

Bain & Company, the originators of the NPS system say on their website. “Companies that achieve long-term profitable growth—have Net Promoter scores (NPS) two times higher than the average company. And Net Promoter System® leaders on average grow at more than twice the rate of competitors.”

Many businesses ask their clients on a regular basis different forms of the ultimate question. Some send a committee from their business or hire a third party to ask their clients this question and others such as:

What areas can our company improve in? What would it take to bring it to a 10?

What companies do you buy from that do score a 10? Even those providing different products and services? What do you value about the way they do things that causes you to rate them a 10?

How can we anticipate your needs so that we’re ready with 10-level service when you need us? How can we partner? Where can communication be improved at all levels?

Please Share.

Have you had an experience where you switched vendors because one vendor was merely convenient and the other made you into a raving fan? Please tell us about your experience and what made the difference for you.

How to Cure an Ailing Sales Process

“Selling’s hard” she moaned, shoulders drooping. “I get told ‘No’ a lot more often than ‘Yes’ and I’m not sure how long I can keep this up.” How many times have we heard comments like this from a sales person? Selling is hard, but for many it’s harder than it needs to be. With a proper mindset and the right approach, sales can occur much more “naturally.” So what does it take to be successful at sales?

1.       Sales Requires a Buyer’s Mindset

Many sales people have a selling first mentality, focusing primarily on their products and services. Their approach is all about the sale, the transaction itself…closing the deal. I’ve heard it termed the NIGYYSOB (“Now I’ve got you, you SOB”) mentality. A more appropriate mindset is that of an “assistant buyer,” which is all about helping your prospect understand their challenges and address their problems. This approach requires getting to know each other, building rapport, and discovering the prospect’s wants and needs, instead of merely “throwing up on them” about your wonderful products and services. Jeffrey Gitomer says that “People don’t like to be sold, but they love to buy.” If you can help solve their problems versus merely trying to sell them something, your chances of success increase substantially.

2.      Selling Takes Time

Sure, some sales happen quickly, but they are the exception. Relationships need to be fostered, trust and credibility developed, and an understanding of each other’s needs and wants gained. Typically, all of this takes time, and frequently it takes lots of time, involving multiple contacts or “touches,” as shown by these sales statistics (if you are not familiar with them they might surprise you):

2% of sales are made on the 1st contact 3% of sales are made on the 2nd contact 5% of sales are made on the 3rd contact 10% of sales are made on the 4th contact 80% of sales are made on the 5th to 12th contact

What do these numbers say about your sales process? If it is true that only 1 in 5 sales occur before the 5th contact, what do you need to change? Are you staying in touch and adding value throughout the entire buying/selling process or are you pushing too hard or giving up too soon?

3.      Selling Needs Tracking

Sales people don’t always effectively track their sales activities. However, there are some fairly simple metrics that can be utilized. T. Scott Brumley recommends the following five ratios be used for tracking the effectiveness of a sales person or entire sales team:

Ratio 1: Total sales compensation/gross sales = direct selling costs (%)
Ratio 2: Gross sales/total hours worked by salespeople = sales dollars per hour
Ratio 3: Number of sales/number of full-time-equivalent salespeople = number of sales per salesperson
Ratio 4: Gross sales/number of full-time-equivalent salespeople = sales dollars per salesperson

Ratio 5: Gross sales/number of sales transactions = average sales dollars per transaction

In addition, at a more tactical level, utilize metrics such as:

  • Number of new connections made with targeted decision makers
  • Number of meetings and conversations held with targeted decision maker
  • Total number of contacts made with targeted decision makers (see sales statistics above)

Tracking can help you pinpoint the problem, analyze it, and take action. If these particular ratios are not applicable to your business, then I challenge you to identify which ones are. Whether or not you currently have a sales plan, the numbers you get from these measures might be used to develop sales quotas or targets.

4.      Selling Requires Management

Sales managers need to be hands-on and spend as much time with their sales people as possible. Regular "one on one" meetings are an effective way for both parties to monitor sales activities and targets. Sales guru Hal Becker recommends four areas to cover each and every week:

  1. Go over the previous week's sales and the sales person's weekly goals. Look at the sales person's calendar for the week that just ended to gage level of activity and results.
  2. Plan the next week's activity and short-term goals. Look at the sales person's calendar for the coming week to see what they have scheduled.
  3. Take a look at the sales person's list of prospects. Match sales calls with prospects or orders to see what has closed, what is pending, and what new prospects have been added.
  4. Ask the salesperson what areas he or she thinks need improvement.

When sales managers are knowledgeable about progress towards sales goals, there are more options to better priorities activities to improve results.

5.      Selling Demands Consistency

Most sales people and sales managers are not consistent: they do not do the right things all the time. It’s been said that “Consistent persistence will win out over talent every time.” Don’t let paperwork, e-mails, budgets and all the "office stuff" keep you from doing your job!  Sales requires discipline at prospecting, making calls, meeting with contacts, providing support, issuing proposals when necessary, relationship-building, and getting commitments for sales. Discipline must be used to perform these activities all the time, not just when sales are slumping. Have a plan that works for you and stick to it. Schedule time and put the appropriate activities on your calendar, and then execute on those actions to maintain forward momentum. Be proactive and constantly measure progress against your goals.

Sales can be relatively easy if we focus on what we want to learn about our prospects and how we can address their issues. Sales people often have their own way of doing things, but rarely is this done consistently. If you need help curing your ailing sales process, I can suggest other resources as well. To get started follow the above recommendations to improve the health of your sales process and get better results…right away!

If you have a comment about your sales habits, we’d love to have you share them.

Satisfied Customers or Loyal Customers! Is there a question?

According to authorJeffrey Gitomer…”Customer Satisfaction is Worthless, Customer Loyalty is Priceless” –

Apparently companies like Cosco understand the difference…They have been recognized as the leader in customer loyalty among warehouse retailers, rocketing from start-up to Fortune 50 status in less than 20 years, while spending next to nothing on advertising and marketing because of word of mouth referrals. They know that companies with the highest customer Loyalty typically grow at more than twice the rate of their competition. And, by Raising Customer retention rates by 5% it is possible to increase the value of an average customer by 25% to 100% (The Loyalty Effect, F. Reichheld, 2006). Rather than spending time trying to remember if you’ve ever seen a Cosco advertisement, lets talk behavior and why emotions matter in the customer experience.

Regardless of how high a company’s satisfaction levels may appear, satisfying Customers without creating an emotional connection with them has no real value. This should be a red flag issue, especially when you consider that it’s reported that 90 to 96% of customers won’t complain. They simply walk away. Emotions Matter…because customers and staff are always emotional, and in service industries because it is so personal and stressful, the emotions are more intense.  A healthy way to view emotions is not as a problem But as the basis for forming relationships – This is how we develop Loyalty!

As a consultant who works with business organizations to help improve their performance, our work often starts with a discussion about the vision of the company. If it’s written, you can usually find a statement about customers under glass on a conference room wall. It often goes something like this…” We believe Customer Satisfaction is our #1 Priority.” But when you ask people inside the organization what that statement really means and how it’s measured, the silence is often deafening. If the people in the organization don’t have a clear definition of what you mean by customer satisfaction, then how do they convey it to your customers?

I have come to the realization that “Customer Loyalty is all that matters,” especially when you define loyal customers as people who will do business with you again, tell others about you without hesitation, and refer people they care about to do business with you. Hugh McColl, referred to as the greatest banker of all time, founder of North Carolina National Bank, that ultimately became Bank of America had a simple philosophy: “I take care of my people, my people take care of my customers, my customers take care of my shareholders.” He never said, “I want to be the number one bank on the planet.” Loyalty is earned…it stems from actions that are taken and the words that are spoken by employees. It’s not just business as usual …

Choreographing the Customer Experience

Disneyworld has a customer experience story that illustrates how the customer experience is designed and choreographed like a dance – a memorable performance with staginglighting, performers, music and a variety of other elements. The customer experience is the product of strategic thinking and execution as much as it is personal warmth.

The Disneyworld Story

The most remembered part of any experience is usually the last part of the experience. It sticks in your memory because it’s the most recent. When leaving Disneyworld after a long fun day, the kids are tired and starting to get cranky. The parents are worn out and the kids are starting to frazzle their nerves. The last part of today’s experience is going to be finding the car and leaving the parking lot. But there are a zillion parking lots and bezillion cars in each one. Sometimes we remember to look at the lot and zone numbers where we parked when we first entered and write down the numbers. But if we’re really excited to go on our first ride, we might have forgotten to write it down, or maybe we just lost the slip of paper.

Is it Disney’s problem that you don’t know where your car is?

In all fairness, no. But if Disney wants your last impression to be your best impression, they will anticipate your inadequacies and choreograph a work-around that delights you. And here’s how they do it. When you enter the park at the beginning of the day they steer you to a parking lot and a row that is filling up at that time, which is recorded. So when you’re leaving the park, all you have to know is the time when you entered and they can drive you to the exact spot in the exact lot where you parked your car. So they get the family loaded in a little golf cart and take you directly to your car.

What’s involved in solving this problem? Certainly listening to the customer, anticipating their needs, caring that their experience is a WOW experience, creativity to find a simple solution, having the tools to record the times different rows are filling up and golf carts to take people directly to their cars.

Who are the Disney staff that know this problem exists? The parking lot employees. They see it everyday. They hear the kids. They see the parents with shot nerves. Who are the best people to come up with a creative work around? They are - especially if they are part of a culture that empowers its people and encourages regular employees to show initiative and even make mistakes while they figure it out.

Choreographing the Dance

Here’s how different aspects of this metaphor match up to your business’ creation of the ideal customer experience.

  • Just like a choreographed dance has the choreographer’s ideas, a business needs a leader with vision, strategic thinking about profitability, and care for the customer.
  • In a dance there are performers and a cast of characters who co-create the roles with their own style and project with their own personalities.  A business’ employees do the same. They enhance and execute the vision of the ideal customer experience. They personalize the delivery and treat every customer as unique and valuable.
  • Lighting, music, set design, props, costumes and makeup create an environment for the performers to create their magic. The ideal customer experience also benefits from a planned and aesthetically pleasing environment that’s engaging and appealing. (includes branding, location décor, graphically pleasing website, etc.)
  • The sound system, lights and stage mechanics create the behind the scenes infrastructure just like a business needs technology systems to track customer information, orders, and parking lot entry times and golf carts (in the case of Disney).

Are you planning your customer’s experience with your organization? Are you choreographing it like a beautiful dance to delight and engage your clients? Are you committed to earning your client’s loyalty and reaping the benefits of more repeat business, more referrals, increased market share and higher profitability?

I invite you to tell a story of a well-planned customer experience that you either created or were delighted by. Thank you for all your ideas.

Your Client as Your Business Asset

Certainly your clients are people; they are individuals you connect to in many ways. Perhaps they are the point person of the organization that is actually who is paying you. You connect by having a personal relationship as well as a professional relationship. Part of your professional relationship is your hope that they see so much value in the service you provide that they give you a testimonial and they bring referrals to you and your business. Many professional service firms grow mainly by referrals from current clients.

So a client is also a business asset. It is an asset you can and should leverage to get other clientsto grow your firm, to accomplish your business’ vision.

How can you best leverage this asset? Here are some ways.

  1. Have your client give you a testimonial letter. Use this when you’re talking to a new prospect, attach it to an email, include in your brochure or prospect packet. Some people might have put this into a ‘Brag Book’ in the pre-digital world.
  2. Put the testimonials on your website. You can see an example testimonial page on my website by clicking here. Use this as an opportunity for your clients to showcase their own businesses. Case studies work well here.
  3. Run a cross endorsement campaign. Another professional who targets the same target market can introduce you to five of their clients in trade for you introducing five of your clients.
  4. Have your clients speak at one of your seminars or teleseminars. They can talk about your process and the quantifiable results. They don’t have to laud you to all the other attendees. The fact that they are there and willing to describe their experience speaks loud enough.
  5. Have a referral meeting. Set up a specific appointment to go over referrals that your client can introduce you to. Tell them about your ideal client so they know who to look out for. Go over your plan for each introduction. Will you be introduced over lunch or breakfast, at a networking event, by email or 3 way conference call? If your client just gives you a name and tells you to make contact, it’s not much of a referral. It’s always best to have this type of meeting when the client is feeling very good about the service you’ve provided.
  6. If you belong to some networking organizations that have regular referrals, invite your client to be your guest. Your client meets new contacts which might help him. When he says something that praises your work to the other participants, they become extra convinced of the value you can bring. They can then be even better at finding new prospects for you.
  7. Partner with your client to do something for the trade association that he belongs to in order to attract similar clients. Write an article together, give a seminar together. Let him put you in touch with the trade association conference organizer so you can be a speaker at the industry event. You both win.
  8. Does the client belong to any alumni, social, spots, country clubs or specialized groups that you can be invited to as his guest? Especially when he’ll introduce you to someone specific.

Leveraging your client assets is a smart way to grow your business. Clients are eager to help if you’ve provided great value and if you ask in a way that the client sees what’s in it for himself. Status (personal or professional), deepening the relationship with his contact, enhanced or new connections for his business, a better relationship with you are all rewards he might get from giving you a testimonial or referrals.

The eight ideas above are just a few ways to leverage your client assets. If you can add more, we’d all enjoy hearing your ideas and experiences.