Transcript
LET IT SPREAD LIKE WILD FIRE: THE POWER OF REPEAT AND REFERRAL
BUSINESSLisbeth Calandrino
www.Lisbethcalandrino.com
TWO WEEKS AGO I CONDUCTED SOME RESEARCH
WITH MORE AFFLUENT CUSTOMERS
THE RESULTS SUPPORT THE NATIONAL TRENDS
CONSUMERS ARE RELUCTANT TO SPEND
IT’S TIME TO GO BACK TO THE OLD DAYS WHEN
RELATIONSHIPS MATTERED
THERE WAS A LITTLE ITALIAN MAN WINE MAKER WHO
DIDN’T HAVE AN ADVERTISING BUDGET
HIS NAME WAS TONY
HE ONLY KNEW HOW TO DO ONE THING, THAT WAS “BE NICE” TO HIS CUSTOMERS
TO SHOW HIS LOVE FOR HIS CUSTOMERS, HE INVITED THEM FOR DINNER AND COOKED
HE KNEW THE BEST WAY TO GET PROFITABLE CUSTOMERS WAS TO HAVE THEM BRING IN THEIR FRIENDS
HE KNEW THERE WAS ONE REASON TO BE IN BUSINESS, AND THAT WAS TO LOVE HIS
CUSTOMERSS
WITH BUSINESS BEING SLOW EVERYONE LOOKS FOR “NEW”
CUSTOMERS
THE PROBLEM IS THAT NEW CUSTOMERS CAN PUT YOU OUT OF BUSINESS
• Spend $300.00 a week and get 30 New Customer
• Customer spends $5.00; $2.50 is profit and $2.50 is hard cost.
• Has actually lost $5 on each new customer.• If of those 30 new customers, 20 never came
back, the bakery has actually lost $100 Action International, “the cost of acquisition”.
THE REAL KEY IS LOYALTY. DOES
LOYALTY MATTER?• For every 1% improvement in your
customer retention rate, operating income will improve by 20%
• A 5% reduction in customer defections can lead to an 85% boost in profits.
• Customer loyalty generates operating margins of 13%, while laggards had margins of just 2%?
HOW MUCH DOES LOYALTY MATTER?
DO YOU KNOW WHY YOUR CUSTOMERS LEAVE?
68% Leave because of “perceived indifference”
14% Leave because of dissatisfaction
9% Leave because of competitive reasons
91% of customer defections can be impacted by staying in touch! What are you doing to “stay in touch?”
Richheld and Sasser study, Harvard Business Review
IT’S TIME TO PUT SOME HEAT INTO YOUR BUSINESS!
• Rules of engagement have changed
• Less customers, changing demographics, less money
• Building less customers but better customers
1.DO WHATEVER IT TAKES TO BUILD A RELATIONSHIP WITH YOUR CUSTOMERS
GIVE THEM WHAT THEY NEED
CUSTOMERS WILL PAY FOR EXPERIENCES
• There was a hotel in California that had free manicures and shoe shining on Thursdays. Guests booked their stays around these services. How about Yoga and Pilates? (That’s what JC Penny is doing)
• Parties, meet other guests, have fun
LOYALTY
CLUBS, GAMES AND EVENTS
• In order to build loyalty you must keep in touch.
• Video or direct mail• www. sendoutcards.com/lcalandrino
YOU MUST MAKE GETTING CUSTOMER’S ADDRESSES A PRIORITY• “We would love to have you on our
mailing list, preferred customer list or special offer list..”
• Keep track of points, Staples rewards, Panera Bread, Starbuck points—reward the loyal customers. The ones who keep coming back.
• Get their birthdays, anniversaries, kids birthdays—anything personal so you can connect
2. IF YOU’RE DOING B to B TREAT YOUR CUSTOMERS AS BUSINESS PARTNERS
• You need to understand their business as well as they do
3. YOU ARE IN CHARGE OF YOUR OWN BRAND IMAGE
You don’t have to have the most money, you have to have the most knowledge and be willing to stay on top of it.
4. THE KEY TO YOUR SUCCESS IS CONSISTENCY
• Everyday get emails and addresses
• Build your data base• Follow through with
your customers• Build your niche
WHERE ARE YOUR
CUSTOMERS?• The average business loses 10% of
it’s customers yearly, not because of price.
• 85% of customers interviewed said they will pay 10-15% higher prices if the customer service is great.
The key? Consistency!
YOU DON’T NEED ALL THE CUSTOMERS JUST THE PROFITABLE ONES
5. THESE DAYS YOU NEED TO PARTNER UP, SHARE RESOURCES AND DOUBLE TEAM THE CUSTOMER!
GET EVERYONE EXCITED AND ON THE SAME PAGE
• You’re heading into your season; this is the time to build relationships and find partners that will last you through the year.
• Get them jazzed!
HERE ARE THE 5 KEYS:
1. Build loyalty2. B to B partnering3. Take charge of your
brand4. Consistency5. Partner up!
COMMENTS?
Lisbeth Calandrino
Helping businesses build loyal relationships through customer
service and sales training518.495.5380
www.Lisbethcalandrino.comRedhotcustomerservice@nycap.rr.com
New York State Media Grouphttp://capitalbusinessreview.com/
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