Saturday, June 14, 2008

Customer Loyalty at Starbucks

According to a recent New York Times article, Starbucks seeks to maximize the client experience with a loyalty program. This is a terrific idea and one that is long overdue. As my readers know customer loyalty programs are efficient as long as two points occur 1) clients are compelled to use the service and 2) there is ease of use or ubiquity in the process.

Exemplars of these points raised include a clients desire to frequent an establishment. Many restaurants provide a loyalty program but if a restaurant is not established in your regional area, what is a customer to do. Second, there are numerous instances where franchisees do not accept loyalty cards and certificates. A recent client of mine had won a loyalty card for a coffee house (not Starbucks) and it contained restrictions.

Further, let's face card or no card loyalty begins with the experience. What happens from the moment a client walks into an establishment until the time they leave. The issue is not the card, the coffee or the clients, it is the staff. Yes Talent! In the past when I entered a Starbuck's a smiling barista greeted me with an enthusiastic hello. They were friendly at the cashier and expeditiously got me my beverage and checked me out. If I waited because the coffee was not prepared I received a FREE cup of coffee! My impression was one of concern, commitment and collaboration. Starbuck's was the only place for me.

I do have several locations in my area that treat me as a loyal client, they know me by first name and by the time I hit the counter my drink is waiting. Yet this is not true for every Starbucks. There is little ubiquity. There are times whether a franchise or store owned when employees could care less if I were breathing. While entering one of my frequent locations, I noticed a new employee reading a training manual; she looked once at me at proceeded to ignore me pretending to read the manual. This is not loyalty this is ludicrous.

Loyalty begins with an empathetic smile and a devotion to assist the customer. Starbuck's I love you but you must begin to get talent to love me in return!

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Friday, April 25, 2008

Training is only triage for real issues











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Monday, March 17, 2008

Do not question the power of the quill

The present world is too muddled with distraction and basics. The lack of articulation is bromide. People are too busy to take initiative. However, the greatest success tool for any business is differentiation. Being different captivates attention and helps rise above a crowded field. One of the best methods is letter writing.
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Recently reported in many newspapers is an announcement by the United States Postal Service to team with HBO Studios. The rationale for this decision is to assist promoting a new mini series by HBO- John Adams.

Aside from his former role as President of the United States, Mr. Adams and his wife Abigail are credited with writing over 1000 personal letters. With the proliferation of electronic inventions from the personal computer to the Blackberry, such feats as letter writing seem unfathomable. Writing a letter takes time, energy and concentration. Imagine in today’s world taking time for all three simultaneously.

Letter writing is an art. One need not only to take the time but find the proper language. Moreover, good language achieves emotion; both happy and sad. Therefore letter writing creates activity and differentiation.

The present world is too muddled with distraction and basics. The lack of articulation is bromide. People are too busy to take initiative. However, the greatest success tool for any business is differentiation. Being different captivates attention and helps rise above a crowded field. One of the best methods is letter writing.

There still exist a number of organizations and individuals that believe Cold Calling is functional for selling success. Show me a successful real estate agent, stockbroker or insurance agent that achieved financial prosperity from cold calling. This technique is an intrusion. If you want the attention of a decision maker research the organization first and write an articulate introductory letter. Then inform the person of your intention of calling at a particular date and time. The difference in writing an introductory letter must be the variable that gets you through the threshold.

A terrific mentor informed me recently that there is a “Dumbing Down in America”. I concur. While preparing for this article, I read a recent article in the New York Times that the readability index of Microsoft Word is set for a fifth grade reading level. What has happened to the power of language? Writing with distinction requires good language skills. I recently conducted a training program and no one in the audience understood the word voracious. Read books, magazines, anything you can get your hands on and learn a new word everyday. When possible use these new words in your correspondence.

Finally, one of the best methods and most succinct forms of communication is a thank you note. Clients new and old appreciate the time spent. Individually written thank you and holiday notes are terrific means of maintaining contact while illustrating differentiation. These need not be the great American novels but they should be articulate.

The ability to write a good letter or concise note illustrates your empathy for building solid client relationships. Writing takes time and commitment but rewards will come. Writing can also be completed anytime, anywhere. Unlike computers and personal digital assistants; pads and pens do not crash and require rebooting. I wrote this article for you in the first few moments of my son’s baseball practice. The power of the quill.

©2008. Drew Stevens PhD. All rights reserved.

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Monday, January 14, 2008

The Importance of Brand

Recently a myriad of announcements made the news that Starbucks is making changes due to increased competition from of all competitors- McDonalds. This brings to mind the importance of brand and brand equity. Branding is value, the value of your product or service and more importantly the perception clients have of your business. A brand is often worth more than the business. Think of the brands you consume; Coke Cola, FedEx, Kleenex to name a few of many. Branding positions your business and makes consumers desire your offering.

The value of a brand creates an allure to the business. Consumers simply want to conduct business because of its power. Exemplars are Kleenex for its quality, Rolls Royce for its luxury and Harvard for its education. Building a useful, titillating and valuable brand produces a cachet. Prospective customers will find you, hear about your brand and value your offerings based on perception. The value of a brand enables the business to differentiate itself from competition.

So the real question- what happened to Starbucks? Simply put, they diluted their brand. This was not a single-handed choice nor intentional but brands do get diluted. Dilution has happened to a myriad of companies such as Coke Cola, Federal Express and others, even McDonalds suffered from product dilution. In the case of Starbucks there have been several factors but two of the most prevalent concern growth and the customer. Ironically there is a certain reciprocity affecting both. Starbucks desired to increase profits with continual and incredible growth, however in doing so they forgot about their most important asset- the customer. Yet in order to appeal to clients that crave Starbucks, there is a need to grow in markets.

However, in growing Starbucks forgot about core. Similar to fitness, core is the foundation of all business. Core is necessary to remain true to strategic direction and mission. In the case of Starbucks their core is coffee and the pleasant experience of capturing the aroma, excitement and attitude of relaxing in an Italian cafe. Starbucks got lost in commercialization, competition and lust for revenue. This is not to say that greed is bad, but when an organization fails to retain core and operates with only revenue in mind, failing to maintain client allure, then business, revenues and clients will be lost.

Is it possible to regain competitiveness and allure? Certainly, for Starbucks it is a return to basics and a return to customer attention. It will take time and for now time is on their side.

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Thursday, October 25, 2007

Customer Loyalty – Does it work? - 7 Steps to Client Retention


A recent survey of from The Conference Board denotes that one of the greatest challenges a CEO faces is customer retention. Other issues are just as imperative, however client retention is included in the top five. Today’s client seeks loyalty and satisfaction; numerous surveys agree and illustrate angst amongst clients to receive satisfaction.


The best method to maintain clients and gain loyalty is to concentrate on the wants and needs of the client. Today’s client seeks value: a key competitive differentiator. Companies provide value by offering services not offered by others. Typical loyalty programs such as frequent flier, frequent purchase et. al. are not differentiators and do little for value. In fact, according to Gartner U.S. companies spent more than $1.2 billion on customer loyalty programs in 2003, yet the data does not illustrate a return on investment.

While research continues there remain several techniques to ensure success:

1. Company Culture. Ensure the corporate culture exemplifies customer service. A key exemplar is Southwest Airlines. Representatives smile when greeted and assist you from take off until touch down.

2. Differentiation. Provide something different, that others don’t. Exemplars are free samples discounts and other related services. A tanning salon recently offered Dollar Days for loyal clients, on a specific day of the week a regular tan costs one dollar.

3. Data. Companies have spent millions on customer relationship software, yet the data is either misused or dismissed. There exist several reasons but do not fear the data, use it to follow trends. Data will tell you where to define and apply techniques for the customer experience.

4. Community. Build community and gain dialogue with clients, this includes executives. No CEO should ever be too busy to meet with customers; they are in business to make customers!

5. Internal Controls. Customer service is as much an internal function as it is external. All employees must be treated with equanimity. Those abhorring employment illustrate dispassion to clients. Ensure employees know the industry, competitive trends and client data. Research for this study illustrates that 74% of employees are more productive and passionate when they are confident in their roles!

6. Caress Complaints. There are numerous client complaints and some valid. Yet take the time to review issues and resolve them quickly. Telecommunications and the automotive industry have taken heat for slow response times; they are getting better. However, clients desire quick and courteous problem resolution.

7. Modeling. Think about it. As CEO or director of an organization, you too are a consumer. What are the issues that bother you? Who are the exemplars that provide empathy? What are the differentiators? There is nothing wrong with modeling. Use what others do and duplicate it! Look at the items and issues that you are passionate about and bring them into your organization.

In the age where the world has flattened, competition has increased and it is harder to hear amongst the din, organizations must do more. Keeping loyal clients is about differentiation, buzz, value and water cooler conversation. Keep clients talking and they will return. Conduct little things and clients return. In the age when CEO’s worry about a myriad of issues, one of the easiest ways to increase profits, lower expenses and produce shareholder value is a loyal, confident and empathetic client base.

For more information please contact Drew Stevens PhD at drew@gettingtothefinishine.com

©Drew Stevens PhD. All rights Reserved.

About Drew Stevens PhD
Drew Stevens PhD is known as the Sales Strategist. Dr. Drew creates more revenues in less time. He is the author of seven books including Split Second Selling and Split Second Customer Service and Little Book of Hope and is frequently called on the media for his expertise. Sign up for Dr. Drew's newsletter The Sales Strategist at (drew3-143901@autocontactor.com) and review his new book Split Second Selling at www.gettingtothefinishline.com/products.asp Also visit Dr. Drew’s Blog located at http://drewjstevens.blogspot.com

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Monday, October 15, 2007

From Emotion to Devotion


Yet business growth is more than money. It’s about creating value for those that request it—your customers. Unfortunately, too many businesses and their leadership team focus on new acquisition and not on existing clients. There is no better way to remain competitive, produce a strong brand, and lower cost of acquisition then customer fidelity.

From Emotion to Devotion
Creating a loyal client base with no acquisition cost

By Drew Stevens

Ask an organization why they are in business and they instantly state, “To make money.” Yet business growth is more than money. It’s about creating value for those that request it—your customers. Unfortunately, too many businesses and their leadership team focus on new acquisition and not on existing clients. There is no better way to remain competitive, produce a strong brand, and lower cost of acquisition then customer fidelity.

Today most businesses clamor for customer satisfaction. There is so much literature on the subject that tips are as frequent as channels on cable television. Customer satisfaction is a bromide. The more important issue to focus is the customer experience The customer experience starts at the initial reception, goes through the purchase and ends with the follow-up. Presently, organizations operate in an acute microcosm looking solely at customer satisfaction by reviewing sole interactions with clients. Customer experience is a constant and repetitive occurrence that illustrates accurate and consistent trends.

Some companies don't understand why they should worry about customer experience. Others collect and quantify data on it but don't circulate the findings. Still others do the measuring and distributing but fail to make anyone responsible for putting the information to use. In a recent survey by Bain and Company only 8% of clients believe they had experienced superior service. The reason for its importance is the multiplicity of potential new clients.

Key exemplars engage their clients and understand how to keep them engaged. A consumer and frequent client for a local UPS store requested brochure copies. The copies were promised for delivery late on a Friday. Through a series of unfortunate events the store missed the deadline. Defying defeat, the store operator personally completed the order. The client received a telephone call at 9:30 PM on a Sunday evening. The owner was personally dropping the brochures.

Other exemplars are Starbuck’s where Baristas remember not only names but the drink orders of repeat clients. Southwest Airlines personally developed a culture of customer experience with its communication. Further, Apple Computers for decades enraptures customers with flexibility, ease and personal commitment. These companies purposefully engage clients and create a customer culture. The mantra for each assists to lower marketing costs, yet multiply clients due in large measure to personal success stories. The clamor for assistance, the desire for personal attention and the yielding of profits to performance creates a devoted and loyal fan base. Satisfying clients achieves numerical goals, however translating them into an experience is a lesson in long term business success.

About Drew Stevens PhD
Drew Stevens PhD is known as the Sales Strategist. Dr. Drew creates more revenues in less time. He is the author of seven books including Split Second Selling and Split Second Customer Service and Little Book of Hope and is frequently called on the media for his expertise. Sign up for Dr. Drew's newsletter The Sales Strategist at (drew3-143901@autocontactor.com) and review his new book Split Second Selling at www.gettingtothefinishline.com/products.asp A

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Friday, September 28, 2007

When Good Customers Do Good Things...


Drew outlines some of the secrets to long lasting customer service. Perhaps it is not what is in your recipe but perhaps the baggage that consumers bring with them. Read on to understand a contrarian view to good customer service.

Got Customer!
Dr. Drew’s Tips When Good Consumers Do Good Things

While most if not all training organizations spin their wheels trying to identify good and bad clients perhaps it is time for a contrarian approach and depict the illustrations of a good client. In my 27 years of sales and customer service, I am finally discovering the effects of long standing clients and will explain them in the paragraphs to follow.

However, one item that requires clarification is the need for all companies to focus on customer relations. Simply put good clients, lower the cost of market acquisition and provide needed marketing hype. The tangential benefits of client relations reduce capital, improve sales and enable more profitable organizations. If you do not believe the work of this expert review the exemplars, Staples, Starbuck’s Southwest and UPS all believe that consumers are job one. Cherished consumers tell others and provide a gravitational pull to an organizations marketing success.

These are some of the items I have found most effective to good vendor/customer relations:

Recognition. One of my favorite all time mentors Dale Carnegie stated, “Be genuinely interested in other people”. There are many consumers that bring their baggage into retailers, vendors and suppliers. I walked into my physician’s office and by body language alone one can tell how agitated the patient was prior to speaking with the receptionist. Treat your vendor, as you want to be treated.

Stop Negotiating. The best consumers understand the value a vendor provides. I pay 80 dollars for a hair cut because I trust my vendor and do not question fees. The best consumers rely on sound advice, understand value and reduce agitation.

Generosity. During Sunday service my pastor states prior to Communion Service, “It is Right to Give Thanks and Praise”. How true this is. Imagine, consumers giving gratitude for a job well done. Most vendors obtain threats and grievance, however, it is best to turn the other cheek and provide gratitude for a job well done. Grandma always did say, “You get more flies with honey”.

Loyalty. Most vendors and service providers enjoy getting to know their clients. My exterminator constantly questions me about family, illnesses and business. Curt knows more about me then some of my immediate family. Take the time to get to know people. Communities are built around networking and communal knowledge, good consumers treat vendors like extended family.

Communicate, Communicate, Communicate. It is deplorable that many customers do not allow others to get to know them. A beneficial circumstance about sales and marketing is building relationships with others. There exist too many distractions today, between electronic communications and running offspring to their variety of after school events. Stress reduction comes from stopping and smelling the roses. Consumer exemplars are those that can relate and communicate.

About Drew Stevens PhD
Drew Stevens PhD is the Sales Stategist. Drew is a sales expert provides a winning game plan to become more productive with no capital investment. Drew is the author of seven books including Split Second Leadership, Split Second Selling and Split Second Customer Service. Drew is frequently called on the media for his expertise. Sign up for Drew's newsletter at info@gettingtothefinishline.com or order his new book Split Second Selling at www.gettingtothefinishline.com/products.asp


©2007. Drew Stevens PhD. All Rights Reserved.

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Monday, September 24, 2007

Tactical Selling Does not Work – Dr. Drew’s techniques for better profits

Selling professionals are too technical in today's competitive global market. Here are three simple techniques to help your organization to become more strategic.

Drew Stevens, PhD, “The Sales Strategist”

Sales forces today are too tactical. In the increasing age of globalization and Internet, competition rises. Attempting to thwart competitive forces, organizations typically hire more talent to sell more products or push one brand over another. Today’s organizations must sell smarter, not harder. This will include focusing on three areas:

Tactical Selling Teams – Tactical sales forces don’t work in today’s complex and connected world. Sales representatives are myopic to the needs of the organization and focus only on the “product/service” of the day. For many of the larger firms, clients see multiple representatives from the same firm. Thus, bargaining power, positioning and value to the client is lost.

The solution is to find the driving forces of your organization and reposition sales representatives so that your core values and related benefits are aligned with client solutions.

Alignment With Customer Values – Most clients comprehend your company’s information prior to the sales visit. Prospective clients seek to parallel a selling firm’s values with their own. Thus, if a potential client seeks to gain marketshare using productivity efficiency then your offering must focus on efficiencies.

The solution is that sales representatives need to research clients and offer them value not price.

Customer to Customer Influences Are Too Strong – One exceptional client experience gains another; one poor experience gains a feature story in The Wall Street Journal. One strategic driver for all organizations must be uncompromised client service. Southwest Airlines, McDonald’s and Starbucks exist to please the customer – each firm takes pride in the customer experience.

The solution is to review your customer experience to understand how your clients mesh with your corporate strategy.

About Drew Stevens Ph.D.

Drew Stevens PhD is the Sales Stategist. Drew is a sales expert provides a winning game plan to become more productive with no capital investment. Drew is the author of seven books including Split Second Leadership, Split Second Selling and Split Second Customer Service. Drew is frequently called on the media for his expertise. For more information, contact Drew at 877-391-6821 or drew@gettingtothefinishline.com.


©2007 All Rights Reserved. Drew Stevens Ph.D.


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Sunday, September 23, 2007

When Good Customer Service Representatives Do Bad Things

Interesting when the economy does well how customers can be taken for granted with so many customers to choose from, organizations quickly forget those that placed them in their current state- customers. Ironically, the cost of acquisition to keep a client is less costly then trying to find a new one. Recent research stipulates that advertising expenses, web development, television production and other media means are simply too costly to the bottom line. Yet, rather than focus on the core, organizations incessantly seek new clients for business.


Recently, a client recommended a certain vendor to David. In trying to secure a large print order David immediately called the vendor, not once but five times. The call was never returned and the vendor lost a significant six-figure order. The question for you, “Are you losing business before your eyes”? Delivering an experience that is satisfying to customers and differentiated from competitors drives both repeat visits and improved profitability. However, poor experiences such as that above enable clients such as David to test competitors and move freely to others. Further, in today’s competitive and quick paced world, it is not difficult for someone like David to take the remote control and switch quickly to the competition. And if that does not work, they will switch again as loyalty in today’s market runs thin.

Family and Friends Plan
The cost of conducting business is very expensive. Everything from gasoline to telecommunications is on the rise. Ironically, maintaining clients costs less than one third the cost of new client acquisition. Organizations today fail to adopt the “Family and Friends Plan”. One negative interaction between client and vendor will be shared amongst family, friends and neighbors. Recently a real estate professionally securing a million dollar sales agreement was asked by the same client to find a new home. Being distant with the client by focusing on new client acquisition, she not only lost the million- dollar sale but a 1.2 million dollar purchase by the same client! Friends and neighbors discovered the issue and now the agent’s sales are down 37%.

It’s the little things
I do an extensive amount of work with a print and shipping operation not far from my home office. Many vendors have opted for my services but I prefer to go to Frank and Carol. They have a mutual passion for serving the client. My visits are not about business but rather interested friends exchanging pleasantries and getter better acquainted each time. The pair knows the names of my children their respective birthdays and even my wife’s! That is not just interest, not about friendship- it is service differentiation. Further, one Sunday evening I received a telephone call at 9:30 from Frank indicating the completion of a job. He apologized for a two-day delay and wanted me to know that the job was not only ready but was on his tab. That is service with a smile and service that continues to enable me to return time and time again.

Consistency
Effective operations and service experiences yield to the bottom line. Consistent execution leads to repeat business via customer loyalty and lower cost of operation. Interestingly, and based on doctoral research prior to this study happy clients, lead to happy employees and happy employees lead to less attrition on both sides of the operation.

Three businesses exemplify consistency; 1) Starbuck’s always hires excited and passionate baristas. Their energy and consistency help retain customer loyalty. It is no wonder that consumers do not mind paying a premium for coffee. Whether you are in Boise or Baton Rouge, you the consumer will always be served in a similar fashion. 2) Southwest Airlines decreases the fair of flying by offering a uniform fee with a passionate and energized staff. Infrequently does one find a poor experience traveling on this air carrier, that continues through the years to continually post a significant profit. 3) McDonald’s offers fast, reliable and efficient service in any city. Employees are constantly willing and ready for your order. And, while dietary issues have changed during recent times, this fast food icon continually posts profitable results.

Albeit each maintains a different demographic and product/service focus, the differentiation between each and its competitors is consistency in operation and operational design. Customers repeatedly experience consistency each and every time enabling a low cost, high return customer loyalty program.

Standards for Excellence
A program or rather culture to achieve consistent experience is difficult and arduous work. The first phase is to assess critically where you are and where you want to be. It is imperative to take pen to paper and ask both customers and employees about their experience with the organization. Seek trends and spikes in the data. Do not ask for the why, but what and the how. There exist other helpful ideas:

1. Make unannounced site visits if multiple locations or simply watch operations. Use a critical eye here to denote spikes in mission, vision and values of your organization.
2. Do not look for the obvious. Seek the rationale for the little items. Ensure calls are answered in two to three rings. Return calls within an allotted time from, for example I return all client calls within reason within 90 minutes of receipt. Use thank you cards and remember client’s names.
3. Teach and Coach. Your clients as well as your customers need the correct operational tools. If you seek improvements they must be taught, as years of habit do not immediately change.
4. Standards. Simply put, when change is needed set standards and stick to them. These include appearance, dress code, hiring, and client interaction. If the culture does not exemplify the standards how might clients remain loyal?

Clearly, globalization, the proliferation of the Internet and the ease of entrepreneurialism have created a highly competitive environment. Differentiation, loyalty, consistency and execution are paramount for the client experience. It is not conscious effort but the unconscious sutelties that will help separate your organization, make you different, maintain client loyalty and keep your profits.


About Drew Stevens Ph.D.

Drew Stevens is a sales expert who assists your organization to sell and service clients in less time. Drew is the author of six books including Split Second Leadership, Split Second Selling and Split Second Customer Service. Drew has over 150 articles on selling and service and is frequently called on the media for his expertise. For more information, contact Drew at 877-391-6821 or drew@gettingtothefinishline.com.


©2007 All Rights Reserved. Drew Stevens Ph.D.


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