Building Client Relationships

Cultivating client relationships goes beyond good customer service—if you truly care about your clients, then they’ll care about you.

By Tom Hopkins

You may think you’re in the business of selling automotive parts, home remodeling or repairs, printing services, financial consulting, tutoring or signs, but you’re not. Even if your products are sold only to other businesses, those businesses don’t make the buying decision–a person does. You’re in the people business, and learning to make people feel important and cared about will help you make both the initial sale and long-term sales over the course of time.

I frequently find great examples of strong client relationships while reading a feature in a local area newspaper where readers are invited to review their favorite nonfranchise restaurants. The articles are wonderful publicity for the restaurants. One of the key elements I see repeated over and over again is that patrons know the names of the owners, hosts and servers. And many of the restaurant workers know something about these customers as well. They know if their guests prefer coffee or tea with breakfast; they may even remember their favorite meal, asking if they want “the usual.”

Put yourself in the seats of those guests for a moment. How would it make you feel to have your particular favorites automatically placed before you without having to explain your preferences? It would make you feel at home–or as if you’re at the home of a good friend, someone who knows you well and wants you to have what you want. Just like your friends and family, these business owners and employees want you to be happy. This type of relationship is ideal when it comes to serving your clients’ needs, and it can be created no matter what your product or service is.

Maybe you sell tires, not breakfast. Even so, you should introduce yourself to each client and tell them your name. Use your clients’ names in conversation during the sales process. Inquire about the use of the vehicle. Does the client have young children or a teenage driver? If so, safety will be an important issue to discuss with them. Do they have a cabin in the woods where some off-road driving is involved? Or do they travel for business and need “highway” tires? All these answers will help you lead your customers to the best choices for them. And keeping a record of the answers will help you build long-term relationships.

You also need to make sure every client receives your best care during–and after–the sales process. During the initial sale, get clients talking and take good notes. Then enter any potentially important information gleaned from the conversation into your client database. My colleague, Harvey Mackay, has a long list of details he requires his salespeople to gather about clients over a certain time period. This includes not just information required to help them conduct business, but a few personal details such as birthdays, whether they’re married, their children’s names, and whether they have pets. That information is used to make contacts and start conversations with clients after the initial sale.

People like to do business with people who are like them, who demonstrate that they care about them beyond making the sale and who keep them in mind when something new that might be of interest to them arises. That type of treatment makes them feel important, and they come to rely on businesses and salespeople they know they can trust to have their needs and interests at heart. And it’s in your best interest to offer that type of treatment and cultivate relationships that customers can count on.

Tom Hopkins is the indisputable king of sales. His book, Master the Art of Selling has sold over 1.4 million copies in ten languages and is considered the classic text on sales.

“Because I understood that building relationships is what selling is all about, I began early in my career to send thank you notes to people. I set a goal to send ten thank you notes every day. That goal meant that I had to meet and get the names of at least ten people every day. I sent thank you notes to people I met briefly, people I showed properties to, people I talked with on the telephone, and people I actually helped to own new homes. I became a thank you note fool.

And guess what happened? By the end of my third year in sales, my business was 98% referrals! The people I had expressed gratitude to were happy to send me new clients as a reward for making them feel appreciated and important.

I built my real estate business to a 98% referral business by using thank-you notes. I heartily endorse the SendOutCards program and I highly recommend it to anyone who wants to build their business and enjoy a greater degree of success.”  -Tom Hopkins

It’s Not Business. It Is Personal: The Rule of Reciprocity

You have probably seen or heard of the classic scene from The Godfather where they say, “It’s not personal. It’s business.” Businesses love this line because it keeps them distant and guilt-free. It lets them think of customers as nameless, faceless masses that just need to be enticed with the right offer.

In fact business has always been personal.  Our relationships with our employees, vendors and customers are personal.  The way we treat them, recognize them and show them appreciation is personal.    Only now, it’s more obvious that it’s all personal, all the time. Today, we live in a new culture.  It’s a hyper-personal, hyper-connected, hyper-transparent, conversational, always-on, highly aware, information in my pocket, find the people like me, start a revolution kind of a culture. That may not sound like business, but it is; and it is very personal.  The businesses that get this win. The businesses that don’t lose.

If you need proof, ask the executives at Motrin about baby carrying moms. Last November, Motrin offended a segment of highly connected moms, the moms took to Twitter, YouTube, and their blogs and shut the Motrin site down in less than 48 hours. It was personal, not business.

The good news is that you do not have to be perfect.  You do, however have to be personal.  In order to be personal, you need to learn to appeal to basic human emotions.

Previously I discussed how I have been greatly inspired by Dale Carnegie who was quoted in his famous book, How To Win Friends & Influence People, as saying, “You can have everything in life that you want if you will just help enough other people get what they want.”  I also discussed the principle of “liking” — the idea that people prefer to do business with people they like and, more importantly, who like them. (An Old Technique Revisited to Grow Sales Today)

Small gestures, big returns

Just as the “liking” principle plays on basic human emotions, so too does the “reciprocity” principle. That’s why it’s so powerful.  What is the Reciprocity principle?

We all know “The Golden Rule” – “do unto others as you would have them do unto you.” But most of us are not aware of the social scientific principle of “Reciprocity” underlying the rule that we can use to become more effective, productive and influential in everything we do. The rule of Reciprocity simply states that people feel obliged to give back to others who have given to them. The rule may seem simple and intuitive, but it has profound implications for business.  This is the fundamental principle that Ivan Misner has founded BNI (Business Network International) on.

“The tendency among humans is that we want to give back to those who have given to us,” says Cialdini, the Regents’ Professor of Psychology and Marketing at Arizona State University and Distinguished Professor of Marketing in the W. P. Carey School. Cialdini is the author of  Influence: Science and Practice and a renowned expert on persuasion.

“We as humans have very nasty names for people who take without giving back in return,” Cialdini explains. “We call them ‘moochers.’ We call them ‘ingrates.’ So generally speaking, we will go to great lengths to give back once we’ve received.”

Sometimes, even a small gesture — a greeting card (expressing thanks, happy birthday or any reason), a phone call, a simple favor — can go a long way to establishing a long, profitable relationship.

Take the example of the Disabled American Veterans. For years, the DAV had sent a basic form letter to potential donors, asking for their support. With that run-of-the-mill letter, the DAV had enjoyed an 18 percent response rate — not bad, really.  But the DAV hoped for better. Seizing on the principle of reciprocity, the charity made a brilliant strategic decision.  One year, instead of sending that tired form letter alone, the DAV also included in their donor package a small gift: Personalized address labels. As a result, the response rate jumped to 35 percent.

“There’s not a single human society that does not teach its children the rule of reciprocity — the idea that you must not take without then giving in return,” explains Cialdini.

The reciprocity principle is so powerful, in fact, it even swayed the opinion — and actions — of Cialdini, who as a persuasion expert should be immune to these tricks.

It all started when Cialdini, making his first stay at the luxurious Mandarin Oriental Hotel in Hong Kong, sat down at his room’s writing table. There was nothing particularly special about either the room or the desk, Cialdini remembers.

It was what he found in the desk drawer that surprised him.

“When you go to a great hotel, sometimes you’ll look in the desk drawer and you’ll see some really nice, high-quality stationary, with the hotel’s name in gold leaf across the top,” Cialdini says. “But when I was at the Mandarin Oriental, I pulled out this stationary and my name was at the top. They had given me a gift that wasn’t designed to promote the hotel. It didn’t have their name on it — it had my name on it. I’ve never stopped recommending that hotel to anyone traveling to Hong Kong.”

With a very small investment in personalized stationary, the hotel has reaped the rewards of word-of-mouth business ever since.

“It was a tailored, personalized gift, Cialdini says. “That’s the key: Many companies will give their customers pens and calendars and other things with the company name on them. But you know what? That’s the wrong name. Our customers’ names, not ours, belong on what we give them.“

A leap of faith?

Cialdini says the applications for reciprocity in the real world are numerous.

A businessperson entering into a new partnership, for example, would be wise to step back and take a wide-angle look at the organization he wishes to work with. Then, he should pinpoint the person or people he can help — and make sure to do so.

“When you go into a new situation, the first question you should ask is not actually the first question we were trained to ask in all of these programs we infiltrated,” Cialdini says. “We were taught to ask ourselves, ‘Who can help me here?’ But the first question you should really ask is, ‘Whom can I help here?'”

Another way to impress potential clients or establish new business relationships, he says, would be to send personalized holiday gifts. To make those gifts more memorable, however, try sending them in October.

“If what you give to somebody is meaningful, tailored and unexpected, that’s really the best you can do,” Cialdini says. “All the evidence shows you will be repaid.”

There are applications inside organizations, too. If you’re a manager and see a colleague struggling with staff shortages, try lending her one of your staffers. Doing so not only helps a friend in need (and your company) but may insure you against similar problems in the future. More likely than not, if the time comes when you’re short-staffed, your colleague will reciprocate in kind.

“Because once you’ve benefited somebody, and once you’ve helped elevate their outcomes, that person will feel honor-bound to benefit you, and help your outcomes in return,” Cialdini says.

Using reciprocity is not complicated, Cialdini says.

All it takes is a little foresight — and the willingness to help others before they help you. In the sometimes-cutthroat world of modern business, that may seem to be a leap of faith.

But Cialdini is convinced it’s one that will pay off.

“It may not happen the next day,” Cialdini says. “But you’ve basically put money in the bank.”

Bottom Line:

• Human beings are programmed to help those who have helped them.

• In the world of business, a small favor to a colleague in need can serve as a long-term investment. According to the principle of reciprocity, a good deed will be repaid eventually.

• Companies can impress customers through reciprocity by offering gifts that are personalized, meaningful and unexpected, which makes them memorable.

Jeff Battiston   www.twitter.com/jbatts

Jeff is Founder and CEO of Global Capital Services, a company that provides financing to businesses and municipalities.  Jeff is also owner of www.BuildRelationshipsToday.com, a cost-effective, web-based system that allows businesses to send personalized greeting cards and gifts in minutes.

Sources: W.P. Carey School of Business, Micro Explosion Media

How to grow your Ideal Clients by 25%

Elizabeth Walker | March 14th, 2009 – 07:53 AM

We are big fans of “growing” loyalty among Ideal Clients over pretty much any other business building tactic. It’s the lowest cost sales activity you will ever engage in, since you are already doing business with them, you already know what they want and need, and you can easily find out if they are being wooed by someone else. How easy is that?

And yet… we have hundreds of examples of business owners who not only don’t take advantage of this fantastic opportunity, they positively destroy it. See if you recognize yourself in these stories:

A client who spends $100 a month in your hair salon calls to make an appointment only to find her favorite stylist has left. Did you keep a database of all the clients who came to the salon and allowed you to contact them, tell them the news and offer them an incentive to remain a loyal client? If not, you lose $1200 a year.

A customer who has been leasing his upscale cars from you for years needs some emergency service. Your service center is booked up so you tell him you’re just too busy. The customer not only takes the car somewhere else for service, he never comes back. Did you check to see how much that customer’s business was worth and find a way to accommodate him? If not, you lose a lifetime value of $500,000.

A customer buys over a thousand dollars in clothing and accessories from you. He is particular but happy to spend to get the quality he wants. He leaves the store and never hears from you again. Did you add him to your database with a checklist of his preferences so you could contact him when specials were available? If the answer is no, you lose the $10,000 he would have spent with you over the next five years.

What would it take not only to keep those customers, but “grow” their business by 25% without spending a cent you wouldn’t have spent anyway?

The first step is a database of every single customer who does business with you. If you can, link it to your point of sales system, so you know how much they spend, on what, and when. At least, set up a spreadsheet with columns as follows: first name, last name, street, town, postal code, phone, email, and a column you can put an X in for the kinds of products and services they buy. Since your computer already comes loaded with Excel, that’s free.

The second step is to sign up for an automated email service.  Sending to up to 500 customers, more than you will ever need, will cost you about $20 a month – almost free. And the first 60 days in many services are completely, 100% free.

[Or better yet, send those customers a completely customized and personalized, hand written greeting card from SendOutCards.  These are not ecards. Their system allows you to send one or several thousand cards, stuffed in envelopes and mailed with a stamp, in minutes.] Editor’s comment.

Elizabeth Walker is an Authorized Duct Tape Marketing Coach and partner in Marketing Masters, a full service marketing communications firm.

Opinion: 12 ways to maximize the customer during a recession

Rick Segel
• 17 Mar 2009

Downward slanting sales. Check. A depleted customer base. Check. Constant stress, worry and handwringing. Check, Check, Check! If these symptoms are all too familiar, then it’s likely your store is suffering from Recessionitis, a disease plaguing many good-intentioned retailers just like you. Thankfully, there is a cure. And I have the prescription: Start maximizing your customers at every opportunity throughout the recession and beyond.

Business is tougher than it has ever been, yet there are stores that are staying relatively healthy. What are they doing right? Quite simply, they are getting the most out of every customer who walks in, logs in, calls in, you name it. Even though they might have fewer customers come through their doors, by maximizing the ones they do have, they’re managing to beat this recession.

Maximizing every customer means getting the most out of them every time they come to your store. It means suggesting more ideas or products before they check out. It means selling your loss leaders/promotional goods and your better merchandise as well. It means collecting as much data about your customers as possible. And it means getting your salespeople focused on saying and doing the right things every time.

Here are a few tips to get you started:

Sell the customer as much as possible. Then sell her some more. Here’s the simple truth: Retailers make money when they are making multiple sales. Your store makes more money when your customers buy more than one item from you. And in order to get your customers to buy more, your employees must learn the art of making multiple sales. The trick is teaching them to remember four magic words: Did you see this?

Let’s say your store sells cookware and kitchenware. If a customer is going to purchase a new casserole dish, your salesperson should ask, “Did you see the serving dish that goes with the set?” or “Did you see this cookbook?” She might decline, or she might walk over and take a look at those items, even if it’s just to be polite. Once over there, you never know, she might pick something else up. And just like that your salesperson has maximized this customer.

Become a relentless data collector. Basically, ask yourself What should I find out from this person that will help me get him back in my store? Ask him what he does to find out what he might be likely or able to buy from you. Keep an eye on when he comes into your store to determine when he does most of his shopping. And when he does buy from you, collect his contact information—his phone number, e-mail and address, or whatever he’s willing to give—so that you can send him information about your store. And once you have this information, put all of it, every detail, into your customer database.

Of course, collecting data from your customers can be easier said than done. Whenever you or a salesperson try to get a customer to open up, remind her that finding out this information will help you better serve her. And when you ask for her contact information, explain that having it will allow you to send her coupons and exclusive sales information. When customers know how they’ll benefit, they’ll be far more likely to talk.

Create a customer wish list. Then, try to grant those wishes. If a customer wants an item you don’t have, or one that you usually do have but that isn’t currently in stock, get his contact information on your customer wish list. That way when the item is in, you can give him a call or send him an e-mail to let him know. This is a great way for you to stay in front of your customer and to give him a reason to come back to your store.

Keep in touch with your customers—and know that “expected” communications may not be good enough. No matter what kind of retail store you own, you should be keeping in touch with your customers. Know, also, that if you’re just letting your customers know about upcoming sales or price notices you aren’t doing everything you could be doing. In a bad economy especially, you need to give your customers every possible reason to remember that you’re out there and to feel connected to you.

Your customers probably get lots of sales notices. Think of ways that you can contact them that will be specific to them or you. Send them a birthday card or a short article that you think might be of interest to them. Or if you or your store has recently been featured in a news story, let them know by sending the clip. The goal is to remind them that you are still around. If you can keep your store on their minds, they’ll keep coming back.

Do whatever it takes to keep the customer referrals coming. In today’s economy, customer referrals can be a great way to boost your revenue. You have to make sure your salespeople get in the habit of asking customers if they have any friends or family who would like what you sell. And because customers are often reluctant to provide a friend or family member’s contact information, you have to give them an offer they can’t refuse.

You might create a customer referral program in which the customer doing the referring and the person she refers receive a reward. You might give the person doing the referring a $20 gift card, and the person she’s referred 25 percent off her sales total in her first visit to the store. I know this feels painful, but just think about the lifetime value that new customer could provide. If she keeps coming back to your store, you’ll make back what you may have lost in the discount, and you’ll continue to make money off her if you turn her into a loyal customer.

Use coupons. They’re a back-to-basics tool that always works. It’s a recession. You simply can’t fight the fact that your customers are going to be more price- and value-minded. You should just go ahead and embrace it. That said, there aren’t many things in this world that price- and value-minded customers like more than coupons. They love feeling like they’ve gotten a great deal, like they’re smart shoppers, and even like they’ve beaten the system in some way. And that should be perfectly fine with you as long as they are coming back to your store.

The secret to successful coupons is using a dollar amount instead of a percentage. Dollar amounts are more tangible for customers. They immediately know what their savings would be whereas with a percentage they might have to take a second to calculate it. And the reality is they may never take that second! Also, make sure your coupons have tight expiration dates.

“Bounce them back” into your store. Bounce-back coupons are a relatively new retail sales tool. They let you give your customer a reason to come back to your store before he even leaves. Here’s how it works: You offer your customer a percentage of his current purchase in a coupon that must be used at a later date. For example, if a customer buys $100 worth of merchandise, he gets a $20 off coupon, but it must be used within a certain time frame, say, at least three days after his purchase but within seven days.

Not only does this provide you with a way to get a customer back in the store, it allows you to pressure him to come back sooner rather than later. Give him too long of a window and he’s more likely to forget about you.

Get your customers to sing your praises…and record their arias. Customer testimonials are the most powerful form of marketing for retailers. So, any time a customer sings your praises, be sure to capture the moment. Bring your customer testimonials into the 21st century by keeping a digital camera and a notepad by the cash register. When a customer gives you a compliment, thank her and ask if you can write it down and take her picture. Then put it on display.

You might frame the picture and testimonial and hang them in your store. Or you can put it on your Web site. Or you can use them in a mailing piece that goes out to your customers. Displaying these testimonials reminds customers of how great you are and convinces potential customers of the same thing. And who knows? The special attention might persuade your attention-seeking customers to give you a testimonial just so they’ll get the same treatment.

Turn your customers into research sleuths. The curse of the retailer is that, despite how beneficial it is for you to see what other stores are doing, you are often trapped in your own store. Your customers, however, have more opportunities than you to get out and about. You might as well take advantage of their mobility.

Ask your customers where they’ve been shopping and what interesting merchandise or clever sales or promotions they’ve seen. Ask the right customers in the right way and you will get unbelievably valuable information. This also helps you make a special connection with your customer—most people love being asked their opinion. It makes them feel important.

Seek out anonymous feedback via customer service surveys. Many retail owners don’t use surveys, but the truth is they can be very valuable. Anonymous surveys, in particular, are a great way for you to get straightforward feedback from your customers. Try it at least once. You might be surprised by the powerful advice you get.

You’ll find out things about your store that no one would ever say to your face. Sure, some of them might be hard to see on paper, but they allow you to correct any problems that are mentioned in your survey. Besides, if you’re doing things right in the first place, the survey results shouldn’t be all negative. You might find out that certain customers would be coming in more if you had a certain product line or if you ran a certain promotion more often.

Create a customer advisory board. Ask a few of your loyal customers if they would be willing to meet with you about four times a year so that you can pick their brains about your store. At meetings, ask what they think about your merchandise, your employees, the way you do business, etc. Remember, those on your advisory board should not have lifetime appointments. You’ll want to switch them in and out every year or so to ensure you are getting the freshest perspectives possible.

Seek out and cultivate lagniappe moments. In tough times businesses have to be willing to give lagniappe—that’s New Orleans-speak for “a little extra.” While this concept is interpreted in various ways, it means that in addition to great deals, coupons, and the like, you also give of yourself. And that is the heart and soul of customer maximization.

You focus on what you can do to genuinely improve your customer’s day rather than on what your customer can do for you. You build a relationship with him. Whether that means you take the extra time to really explain a product to someone or give him a gift card as thanks for referring a customer, you’ll be building a relationship that turns into customer loyalty.

Today’s consumer is in the hunt for the best buy of the day. And we as retailers are in the hunt to convert the hunters into the hunted—in a nice way, of course. That process starts with maximizing the customer.

I love the saying that retailing is a contact sport. You have to get in front of your customers. We are living in the era of proactive retailing. We can’t wait for customers to just walk through the front door anymore. You have to interact with them and get them to open up to you so that you can find out what their want is. Naturally, that’s never an easy process. But going the extra mile, every day and in every way, can keep them spending more and coming back. And that’s the best recession survival strategy you’ll ever find.

Rick Segel, CSP, a seasoned retailer of 25 years, owned one of New England’s most successful independent women’s specialty stores. He is the marketing expert for Staples.com, a contributing writer for numerous national publications, and a founding member of the Retail Advisory Council for Johnson & Wales University.

Rick has authored nine books, two training videos, and a six-hour audio program. Retail Business Kit For Dummies, published by Wiley Inc., became the No. 1 selling retail how-to book in the United States in January 2002 and is now in its second edition.

An Old Technique Revisited to Grow Sales Today

The majority of my business–especially the high-ticket and repeat kind we all so love–comes via referrals. I will bet that the same is true for your business.

The reason: All things being equal, people do business with those they Know, Like and Trust. The next preference is to do business with those that have been recommended by others, they know like and trust.

So the key to generating more sales in business is, very simply, to become known, liked and trusted by your customers or their friends. How do you go about doing this?

The answer can be found in a book that was first published in 1936. (It is amazing how sound fundamentals can so often be overlooked or forgotten) How to Win Friends and Influence People, by Dale Carnegie, is one of the first bestselling self-help books ever published. As outlined by Carnegie, one of the most important techniques in getting someone to like you is to show that person honest and sincere appreciation.

As human beings, everyone wants to and needs to be appreciated.  So are you showing your clients and customers that you appreciate them?   We have grown accustomed to expect a “Thank You” at the time of purchase, but when was the last time you received a gift or a “thank you” card from the business you transacted with?  A  heartfelt “Thank You” card not only shows appreciation, it causes mutual appreciation for your company. It strengthens your relationship with your customer and makes them more  eager to return and do business again and most importantly refer their friends.

I will give you another example:

About eight years ago we sold a house and bought a new one. Because of timing, we happened to use two different realtors. The woman that sold our old house sent me her business card after the closing and I never heard from her again.  I don’t remember her name and I don’t remember the name of her company.

The woman who brokered the purchase of our new house was Kathy Day from Prudential. I haven’t seen Kathy in 8 years but I remember her very well. Why do I remember her?

• She sends me Birthday Cards
• She sends my wife Birthday cards
• She sends us Holiday Cards
• She sent us a Happy Anniversary Card and a gift basket for the One Year Anniversary of our house!
• She sends new listing and closed sale updates
• She even sent a card on the fifth anniversary of our purchase

Not only has she showed us honest and sincere appreciation as customers, but she made us feel as part of her family. So if somebody was to say to me “Hey, Jeff, I’m looking to buy or sell a house … Where Should I Go? Who would I recommend? Some woman I don’t even remember or Kathy?

Furthermore, statistics show that it’s cheaper to retain a client than to obtain a new one.  You have already made the investment to get the customers that you have, by showing them appreciation you are protecting that investment.  Sending personalized greeting cards is an inexpensive way to strengthen relationships and by strengthening your relationships with your existing customers and clients you are growing your business by retaining them and encouraging them to give referrals.  Consequently, the effect of sending a personalized card is very potent and profitable.  A verbal thank you or an e-mail to clients is a necessity, but in today’s world of electronic communication, there is nothing more powerful than sending a hand written, personalized and tangible card.

Another interesting point; Carnegie reminds us, “Remember that the person you are talking to is a hundred times more interested in himself than he is in you.” To this point, I have found that sending a card that includes my client’s or customer’s picture or a picture of something important to them, becomes a card that does not get thrown away. To the contrary, that card is hung on a wall or remains on their desk, always reminding them that I appreciate their business.

So you don’t think you have time to send a card?  It’s vital that you make time.  The online system that I use allows you to choose from 13k cards, personalize them with photos, your own hand writing and signature. These are not ecards. When you click send, they print, place your card in an envelope and mail it with a stamp. Best of all, it only costs 62 cents per card.  It will probably take, at the most, 3 minutes to send one card or one hundred cards. This tool also allows you to send gifts like brownies, books, gift cards etc.. along with the card. You can find this tool at http://www.buildrelationshipstoday.com.

Some other ways to show appreciation is to send a “Thank You for Doing Business” card to new clients, or send a card to prospective clients to thank them for taking the time to talk with you.

For one of my clients that owns a construction company, a card is sent when they complete a job with a picture of the final construction.  His sales have increased 352% in the last two months because of return customers and referrals.  Not only is this because of the quality service that he offers, but because he is following up and letting the customer know that their business is appreciated.

As Dale Carnegie told us many years ago, “Three-fourths of the people you will meet tomorrow are hungering and thirsting for appreciation, give it to them and they will love you.” Perhaps more true today than when he said it.

It is very important to have a quality product or service but you also have to have a quality ongoing relationship with your clients and that starts by showing honest and sincere appreciation for them.

Jeff Battiston   www.twitter.com/jbatts

Jeff is Founder and CEO of Global Capital Services, a company that provides financing to businesses and municipalities.

Times Are Tough. Do Your Customers Know You Care? 3 Steps to Becoming a Trusted, Customer-Focused Business

A down economy is the best time to connect with your customers.

Consumers are seeking trusted business sources to hear their concerns and provide them with options. Customers want your ear and your empathy. They want to be heard and acknowledged. They need to know that you understand and care about what they’re going through — even if they’re not buying from you at this point in time.

It comes down to this: You may have the best product or service out there, but that alone won’t guarantee your success if you haven’t built loyal bonds with your customers. Your existing customers are your best customers. They will thank you with their repeat business and send you business referrals. And they will think of you when they’re ready to buy — in good times and in bad. But customer loyalty must be earned.

Unlike big business, small organizations are uniquely able to cater to customer needs and earn their loyalty. How do you do that? By being 100% customer focused every day, with every interaction, in every aspect of your business. Here are three ways simple ways you can earn their loyalty by focusing on super-serving your customers.

1. Be Passionate About Your Customers

Being passionate about your customers starts with listening to and hearing their concerns. Make sure you always understand what the customer is saying or asking. Educate them on the value of the products and services you provide, and offer them solutions based on what they need. Passion means proving to customers you are vested in their success.

Passion also means being accessible, accountable, and HONEST. If there’s a problem, don’t gloss over it. Own it. And don’t quit until you make it right. Saying, “I’m sorry, let’s work this out” goes a long way toward earning your customer’s gratitude and return business. Get on the phone, send an email or send a personal card and make that personal connection.

2. Use Every Interaction as an Opportunity to Build a Relationship

Consumers today are feeling beat up and shrugged off by the sorry state of some big-business customer service. Customers desire connection.

We have a mantra here: “Connect to give.” We make every effort to connect with our customers for no other reason then to stay in touch and strengthen our relationship. We remember birthdays, send advice and support, and sometimes just a hello and an inspirational quote.  In doing so, our customers rely on us as they do their friends and we take a lot of pride in that.

Every interaction — be it over the phone, in an email, or across the counter — is an opportunity to deepen your bond with your customer. Make sure all your employees share your commitment to your customers’ success.

3. Learn What’s Important to Customers and Deliver It

The businesses that are going to survive this economy unscathed are the ones who are listening to their customers and adapting their businesses based on customer feedback. By letting your customers know that you are not only interested in their feedback — but you are willing to act on it — you can build stronger customer relationships and earn your customers’ loyalty.

Extend invitations for customers to give you feedback at every opportunity. If you have a physical store, put a suggestion box at the counter — alongside your email sign-up list.

Include an open-ended question at the end of every email marketing communication asking, “How are we doing? What could we do better?” Better yet, do it in a “hand-written” card and send it in the mail with a stamp. That act alone will set you apart from your competition.

Survey your customers to find out what they want and need right now. Ask them, if they’re not buying from you now, why not? What would it take to get their business back? Report on that feedback to your mailing list in your future email marketing communications.

Write a Question-and-Answer column in your email newsletter inviting customers to sound off and tell you what’s on their minds. Offer free advice. Use customer feedback to inform your email marketing content and drive your campaigns.

The economy may be turbulent for some time. The good news is, building loyal customer bonds is an investment in your business’s future. Because when the dust clears and the economy picks up again, loyal customers are more apt to come back to a trusted source with whom they’ve done business before. But that’s true only if they believe you’re focused not on what you want to sell them, but on what they need. Today that might just be a good ear that shows you care.

For more information, check out www.BuildRelationshipsToday.com

Jeff Battiston, www.GlobalCapital-LLC.com

Jeff is Founder and CEO of Global Capital Services, a company that provides financing to businesses and municipalities.

A Riddle – What Is This Valuable Business Tool?

It costs nothing, but creates much.

It enriches those who receive, without impoverishing those who give.

It happens in a flash and the memory of it sometimes lasts forever.

None are so rich they can get along without it, and none so poor but are richer for its benefits.

It creates happiness in the home, fosters good will in a business, and is the countersign of friends.

It is the rest to the weary, daylight to the discouraged, sunshine to the sad, and Nature’s best antidote for trouble.

Yet it cannot be bought, begged, borrowed or stolen, for it is something that is no earthly good to anybody till it is given away. (Source: Dale Carnegie, How to Win Friends and Influence People)

What is this valuable business tool??

Simply, a SMILE.

Remember, all business comes down to relationships.  People do business with those they like and trust.  A smile is the best and most simple way to make a good first impression and build relationships.

That is why dogs are considered “Man’s best friend.”  They are so happy to see us that they almost jump out of their skin.  Naturally their action only makes us happy to see them as well.  The same is true between human beings.

Jeff Battiston

Jeff is Founder and CEO of Global Capital Services, a company that provides financing to business and municipalities.  Jeff is also an Independent Distributor for SendOutCards, an internet-based system that allows users to send personalized “hand-written” cards by US Mail.

Referrals Are the Lifeblood of Anybody’s Business

How to Make it Rain Referrals

If you don’t have a systematic referral program you are missing out on one of the simplest, lowest cost, ways to generate your highest quality customers. Referrals are the lifeblood of small business and if you haven’t yet institutionalized a referral program, you’re making a huge mistake.

Why are Referrals so Powerful?

The reason referrals are so powerful is because they come from a credible third party that has experienced first-hand the benefits of doing business with you.  They are even more powerful when they come from a friend because you know that a friend has no ulterior motivations but to do what’s in your best interest.  You can believe what your friend is saying versus hearing a commercial from a salesperson whose sole purpose is to make money from you.

Referrals are also valuable because most of the time they are completely free.  How would you like to receive the benefits of the most compelling sales advertisement on earth for absolutely nothing?  You can through referrals.

Research shows the importance of referrals.  According to Paul and Sarah Edwards (authors of Getting Business to Come to You), up to 45% of most service businesses are chosen by customers based on the recommendations of others.  A recent Dun and Bradstreet survey found referrals to be one of the two most popular small-business marketing methods (the other one is advertising).

Lastly, and I think this is the most powerful reason of all, customers that give referrals become more loyal to you and your business.  Once someone stands up and makes a public statement about you, psychologically they will become more loyal to you and your business.

Customer Service Doesn’t Always Equate to Referrals

Customer service is critical to the success of your referral program.  It is the foundation of the referral process.  But just because you give good customer service, it doesn’t mean that you will get a lot of referrals. Receiving referrals on an ongoing basis is as much a function of deliberate planning as it is great customer service.

Many small business owners assume that referrals will happen by themselves if you give good customer service. This isn’t true.  If you are not deliberate and proactive in creating referrals, the chances of you receiving as many referrals as you want are slim.  And your best customers are ready and willing to give you referrals as was shown in the statistics above, you just need to show them how.

Word of Mouth Advertising and Referrals are Not the Same

Word of Mouth advertising happens when one of your customers or friends mentions your small business in a casual conversation.  It’s not intentional or planned.  It’s just something that came out of their mouth.

A referral system is a methodical process that you have put in place to capture qualified prospects through your association with other people.

A ‘system’ by its definition is a ‘process that products predictable results.’ A system can be turned on and off like a light switch at will.  Your business needs word of mouth advertising but don’t mistake that with developing a methodical system for referral prospecting.

Making it Rain Referrals Starts with Your Attitude!

Time and again the same question keeps coming to me, ‘How do I get more referrals?’  My answer is always the same, ‘You must ask for them.’  In reality, most small business owners know that they have to ask for referrals to get more referrals but it’s the fear of asking that impedes them from moving forward.

This fear of asking is rooted in your attitude.  If your attitude is one that believes that you are asking that person to go out on a limb for you by asking them to give you referrals then you will always be battling with fear.

People Want to Give Your Referrals

If you truly believe that it will be helping them if you ask them to give you referrals your fear would fade quickly. Your customers want to give you referrals.  It makes them feel good that they found a great small business that they had a good experience with and they want to share their ‘little secret’ (you) with their friends.

They will be seen as a hero, or someone ‘in the know.’  And when their friend receives great service from you as well, your referring customer will feel as though he was able to do their friends a great favor.

When you ask for a referral, and you have treated that person right, you are actually doing them a special favor.

How to Ask for a Referral

Has someone ever asked you for a referral?  Did it go something like this: ‘Hey John, by chance would you know someone who could benefit from my services?’  John starts to ponder and think about it and eventually says, ‘Well, not off the top of my head, but I’ll keep thinking about it.’

This is how 90% of all referral questions are asked and unfortunately, you might as well not ask the question. Rarely, if every, will you get a positive response.  Why? Because you didn’t ask the question right. ‘know anyone who…’ questions are too broad for people to think about.

People need a frame of reference to help them narrow down the playing field of potential referral candidates. For instance, imagine that you are talking to one of your good clients who is pleased with your services.

You ask her, ‘Mary, you’re a member of the Women’s Financial Planning Association here in Chicago right?’ Mary responds, ‘Yes, I am.’ You ask, ‘Do you go to their meetings on a regular basis?’  ‘Yes, most of the time.’ Mary says.  ‘Is there anyone in your association that you believe could benefit from my services?  Maybe one or two people you’ve known in the group for awhile or sit next to regularly?’

Did you see the difference?  You gave Mary a narrow frame of reference from which to think about.  It allowed her to ‘see’ the potential referrals in her mind.  This may be limiting the number of potential people that your associates might know, but it is far more effective than opening up the ocean of people that Mary may know, but can’t remember.  Your request will also stay in Mary’s mind long after you’ve asked it because she visualized your services with much greater intensity.

Two Types of Referral Programs

Basically, there are two sources for referrals, your current customers (people who have done business with you) and other influential people. You should have an active referral system for both types of people.

Your customers are perhaps your most enthusiastic referrers because they have experienced your product.  But, you may in fact, get more referrals from other influential people who have never tried your product.

Develop a system for obtaining referrals first from your customers and second from other influential people or ‘Centers of Influence.’

Perhaps the simplest way to harvest referrals from your customers is to write a simple letter asking them for their help.

Centers of Influence and the 80/20 Rule

Your best referrers are your customers.  The people who have experience with you and can vouch first-hand for your product and service.  However, there are many other people and organizations that you must include in your referral prospecting system.

These individuals are people who know and mingle with many other influential people.  These people are often known as, ‘Centers of Influence.’

Centers of Influence can multiply your marketing efforts ten-fold.  They turn your marketing efforts from one-to-one to one-to-many.  They are the heavy hitters that can have a profound multiplying effect on your business.

A smart small business owner will spend the majority of his referral prospecting time with the 20% of their centers of Influence that will produce 80% of the results.

Conclusion

Establishing a referral program with your customers and other influential people is absolutely critical. Many small business people make the mistake of not institutionalizing a systematic program for referrals. They confuse word of mouth advertising with a referral system and, hence, overlook the single most effective advertising for a small business.

Don’t make the same mistake. Develop your networking skills and referral programs today and start receiving an endless stream of new customers.

Now go out there and make it rain referrals!

Courtesy of David Frey

For more information see: http://socreferral.com/jeff

David Frey is the author of The Small Business Marketing Bible. David spent five years as a senior business consultant in Anderson Consulting; one of the world’s largest consulting firms. He was also a former Senior Vice President for a $500 Million company, and a Vice President of Sales and Marketing in the retirement community industry. David’s Marketing Best Practices newsletter is read by over 45,000 small businesses in over 20 countries worldwide. He was the #1 top sponsor in SendOutCards from 8/06 through 8/07, and the #2 income earner in the company.