Creating Customers for Life: The Golden Customer Rule and Emotional Loyalty

Learn how to create customers for life by implementing the Golden Customer Rule, understanding customer emotions that drive buying and loyalty, and focusing on customer service management best practices. Discover the importance of building strong relationships, being responsive and rewarding, and offering reliable and relevant solutions to customer needs. Embrace the idea of treating customers like close family members to ensure long-lasting loyalty and satisfaction.

• Customer loyalty
• Relationship management
• Customer emotions
• Golden rule
• Customer service

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1. NRCC Conference, 9/20/2016 How to Create a Customer for Life

2. Customer ^

3. Contents The Golden Customer Rule An Analogy Customer Emotions that Drive Buying & Loyalty The 5 R s of Customer Loyalty 1. Relevant 2. Reliable 3. Recognizable 4. Responsive/Rewarding 5. Relationship Oriented Customer Service Management Best Practices Car Wash Case Studies & Success Stories Scoldings Car Wash Randy s Car Wash Hoffman s Car Wash

4. The Customer Golden Rule

5. The Golden Customer Rule Scenario: Close & Dear Family Member Visiting After Being Away for a Long Period of Time Guests Actions Telling you family stories since you saw them last Tells You They Need Something during their visit or that there is a problem You know they like a certain type of food before their visit Spending time at your residence Limit their time at your place, since they are away from their own home Your Likely Actions Listen Intently, Ask questions, Express Your appreciation for their insights You go out of your way to accommodate your guest, make them feel comfortable You make sure there is plenty of that on hand for their visit Cleaning up prior to their visit, making them feel totally at home, comfortable Making the most of every minute and wanting to ensure a fun, enjoyable, memorable visit If you treat your customers like the long lost & dear relative, people will remain a customer for life as well as their children, and their children s children, etc.

6. Customer Emotions that Drive Buying & Loyalty

7. Two Conditions Need to Exist for People to Buy Sweet Spot for Loyal, Lifetime Customers Good Feelings Solutions to Problems 70+% focus here exclusively But here is where you win customer loyalty Most people buy emotionally People spend (more) money when and where they feel good about the business relationship

8. 6 States of Customer Emotions Customers buy only when they are feeling emotionally satisfied about your company and your products and services.

9. Good Feelings The Right Touch If the customer feels good, they will buy and come back 1. Put yourself in the glad emotional state 2. Never tell customers your problems 3. Remember that customers buy for their reasons, not ours 4. Act as if you are the only personal contact that the customer has with the company and behave as if the entire company s image depends on you 5. Use both logic and emotion to win and keep customers 6. Use the problem-solving approach to move customers from mad, sad, or scared to glad

10. Develop an Environment Where Customers Want to Buy From You 1. Develop a genuine interest in respect for your customers 2. Set the tone by developing & living by a customer vision and code of operations 3. Put customers at ease and establish and open rapport 4. Use humour where it s relevant and appropriate (example from College Park Car Wash, Dave DuGoff) 5. Let them know that their satisfaction is important to you VS.

11. The 5 Rs of Customer Loyalty

12. Win a Customer for Life By Employing... The 5 R s of Customer Loyalty

13. 5 Rs of Keeping Customers for Life BE: Recognizable Relationship Oriented Responsive Rewarding Reliable

14. 5 Rs of Keeping Customers for Life Be Reliable Reliable Defined: Able to be trusted to do what is expected or has been promised

15. 5 Rs of Keeping Customers for Life Be Reliable Reliable : Able to be trusted to do what is expected or has been promised Develop & Publish a Customer Commitment Statement (Goal) Sudsy s MURFREESBORO, TN (http://www.sudsyscarwash.com/aboutus/handbook.html ) OUR MISSION Speed. Sparkle. Smile. Our mission is to love & serve our guests, our community & our team; and, provide an exceptional car wash experience with speed, quality and stellar customer service. While most express exterior car washes claim a fast , quality wash, it is the smile that encompasses a greater experience for us. In the scheme of things, a car wash is not really all that important; but improving the quality of life for our guests is. When a car enters our tunnel, it exits cleaner; it is our goal when a guest enters our site, they exit happier.

16. Develop & Publish a Customer Mission Statement Randy s Car Wash (Ron Bousquet): I make every customer interaction an opportunity to develop a more lasting and positive relationship I strive to make every customer happy every time and if the customer isn't happy, I'll re- wash and do anything in my power to make it right.

17. 5 Rs of Keeping Customers for Life Be Responsive Responsive Defined: Reacting in a desired or positive way

18. 5 Rs of Keeping Customers for Life Be Responsive Responsive: Reacting in a desired or positive way Set Customer Service Standards 1) Set customer service level agreements (SLAs) 2) Make yourself or someone your designate accessible to Respond and interact with customers 3) Interact with customer by using the golden customer service responsive rules

19. 5 Rs of Keeping Customers for Life Be Responsive Responsive: Reacting in a desired or positive way Hoffman s Car Wash (Walt Hartl) Corporate Philosophy: You can t make a $20 mistake Meaning Make it right, do it now!

20. Golden Customer Service Responsive Rules 1. As soon as you see a customer, politely acknowledge his presence. Never, never, never, ever ignore a customer 2. Be equally prompt and polite when answering the telephone 3. If a customer has a scheduled appointment, make it your business to be on time 4. Prepare for customers questions by having the answers 5. Whenever possible, prepare in advance for each individual customer 6. Start each day with a check-up 7. Ask the right questions 8. Listen for total meaning 9. Match your solutions with their problems

21. 5 Rs of Keeping Customers for Life Be Recognizable Recognizable Defined: Able to be recognized or identified from previous encounters

22. 5 Rs of Keeping Customers for Life Recognizable : Able to be recognized or identified from previous encounters Be Recognizable In Customer Minds Being Known for Something Giving Back & Charity Events Lead the Pack & Are Profitable It s Profitable It s simple Wonder Wash supplies you with Pre-Paid Wonder Wash Certificates. You turn around and sell them. The certificates are redeemable for car wash services. Your organization keeps 50% of the money you collect. Your organization cleans up with profit at Wonder Wash. ..and Wonder Wash gets new/found sales through an army of sales people, gets great PR, is known for something, etc. WIN-WIN-WIN!!!)

23. 5 Rs of Keeping Customers for Life Recognizable : Able to be recognized or identified from previous encounters Be Recognizable In Customer Minds Being Known for Something Hoffman s Helping Hands Program:

24. 5 Rs of Keeping Customers for Life Be Relationship Oriented Relationship Oriented: Leadership behavioral approach in which the leader focuses on the satisfaction, motivation and the general well-being of the customer

25. 5 Rs of Keeping Customers for Life Relationship Oriented: Leadership behavioral approach in which the leader focuses on the satisfaction, motivation and the general well-being of the customer Be Relationship Oriented Get to Know, Satisfy the Customer; Enlist Their Support To Expand Your Business - $$$$$ 1) Be Known as that great, friendly, customer oriented, caring Owner 2) Get to Know Customers Needs Every Unmet Need is a chance to sell more!

26. Two Key Questions to Build The Ultimate Relationship & Keep Customers for Life How are we doing? How can we get better? -Determine the customer s perception about your quality of service - Survey in lane: Verbal or paper (for incentive) - Survey Monkey if you have access to their e-mail addresses - Focus Group of loyal, frequent customers - What do you need to do in order to increase that perception Perceived Service Quality (vs. Price) is the single most important factor in determining long-term profitability.

27. The GOLDEN question to win new customers, expand your business $$$$$ What s the unmet customer need & want (a.k.a. how can I expand by business, be more profitable, etc.) 1. Start with a viewpoint of what does the market need & demand instead of your existing company s services 2. Ask your customers and potential customers the golden question 3. New products and services can be a new twist on existing services 4. Brainstorm ideas for creating new customers 5. Be a trend-spotter by continually benchmarking against the best 6. Once you decide to proceed, move quickly but via limited pilots** 7. Be prepared for some ideas that do not pan out ** limited pilot is a trial run of the service to test its viability before investing too much

28. 5 Rs of Keeping Customers for Life Be Relationship Oriented Randy s:

29. 5 Rs of Keeping Customers for Life Be Relationship Oriented Randy s:

30. 5 Rs of Keeping Customers for Life Be Rewarding Rewarding: Providing satisfaction or gratification Customers Employees That Best Service Customers

31. 5 Rs of Keeping Customers for Life Be Rewarding Rewarding: Providing satisfaction or gratification Customers: 1) Customer of the Day 2) Recognize a Customer 3) Customer Advisory Program 4) Formal Loyalty Program

32. 5 Rs of Keeping Customers for Life Be Rewarding Rewarding: Providing satisfaction or gratification Employees: 1) Shining Star Programs

33. 5 Rs of Keeping Customers for Life Be Rewarding Rewarding: Providing satisfaction or gratification Hoffman s Car Wash (Shining Star Program):

34. Customer Service Management Best Practices

35. YourCompanys Best Customer Advocate is YOU as Chief Customer Officer (CCO) To: Treat Customers via The Golden Rule Live, Eat & Breathe via the 5 R of Customer Loyalty Create The Environment to Evolve and Grow Customer Advocates, Super-Advocates, etc.

36. Customers Perception is Everything Perceived service quality (PSQ) is the difference between what customers receive and what they expect at the price they are paying 1. Look at your business through your customer s eyes, get mystery shoppers to try your business & provide honest feedback 2. Beware of over-promising and developing unrealistic customer expectations 3. Use problems as opportunities to demonstrate your commitment to your customer first policy 4. Develop a unique relationship with your customers and treat each one as special individuals 5. Keep customers informed 6. Remember that a large part of good service is being a good & memorable CCO Perceived Service Quality (PSQ) is the most important factor in determining long-term customer loyalty

37. View Customer Complaints as Golden Business Improvement Insights Customer complaints point out areas that need improvement Customer complaints give you a 2nd chance to provide satisfaction to dissatisfied customers Customer complaints are a golden opportunity to strengthen customer loyalty 1. Seek out and demonstrate that you welcome complaints 2. Take every complaint seriously (vs. with disdain) 3. Consider setting up a system to document and classify complaints 4. Set goals for resolving complaints 5. Learn and get better from complaints

38. What to Do When the Customer Complains 1. Listen with understanding, genuine concern 2. Paraphrase customer feedback to show you are listening 3. Analyze what the customer really wants & needs 4. Propose a solution and get their initial feedback to diffuse the situation 5. If the customer doesn t like your solution, ask him what he would consider a fair settlement 6. Follow-up to ensure satisfaction 7. Never let the customer feel like they lost

39. Develop the Win-Win-Win Customer Ecosystem Triad Management Current & Potential Customers Employees, Vendors If you take great care of your employees and reward customer service excellence, there is a high probability that your customers will feel well treated & remain loyal to your business

40. Setting The Customer Excellence Expectations 1. Explain What Customer Service Excellence Looks like 2. Demonstrate via Your Own Action, Be a Role Model 3. Enable & Reward Employees to Follow Your Lead What type of customer excellence results do we want to achieve? How will customer excellence be measured? What kind of behaviou r and results do I want? How can we demonstrate to employees that the customer comes first? How will it be rewarded when it occurs?

41. Customer Golden Rule Interaction Recommendations When the Customer Appears, calls, or inquires How to Interact By being prompt and prepared Is angry or defensive With kindness and empathy Has special requests By customizing Raises obstacles or objections By agreeing, empathizing, and rooting out the key cause for concern Buys By delivering more than you promised Refuses to Buy Complains With polite appreciation With fast, positive action Is Disappointed, Appears to Be Defecting With Attrition Prevention Perks

42. Conclusion 1. Treat your customers like Lifetime Partners that long lost & cherished relative (the golden rule) Ask every one of your employees for service improvement ideas If you don t have a service strategy & customer policy, develop one that distinguishes your business from the competition! Carefully select and heavily train your frontline people in the Art of Customer Service Excellence Set service quality customer excellence goals & rewards Get out of your office and find out what s happening with real customers Never be satisfied!! 2. 3. 4. 5. 6. 7.

43. NRCC Conference, 9/20/2016 Thank you! Steven M. Jeffes stevenjeffes@yahoo.com 518-339-5857