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Engage Your Customers

Recently I became a member of a shoe website that presents me with a showroom each month based on my saved style preferences. There are quite a few websites that have adopted this model of late, with similar or identical price points. Why am I loyal to my website of choice? Because a few days after I placed my first order I received an email apologizing for the delay in shipping (which I had not even particularly noticed) and offering me 100% off my next order. Not only that, I received a call from a very courteous customer care representative the next day, personally apologizing for the delay once again, and making sure I knew that I had a credit on my account. My boots arrived a couple of days later. I would estimate that since this experience I have told upwards of 10-15 other girls about this website, specifically mentioning the exceptional customer service. At least 3 that I know of have started using the site as a direct result of my recommendation. And that is how you create not only loyal customers—but customers who will create future customers.

Last week I read an article in the Gallup Management Journal entitled, “The Constant Customer,” about what makes the most loyal, engaged customers become—and stay—that way. It’s no mistake that much of what makes a customer loyal to a company or brand is driven by employees—and those employees must be engaged to provide the level of service that it takes to truly lock in customers. Simply satisfying a patron by providing an expected service such as a hot cup of coffee prepared as directed, or a hotel stay that is convenient and reasonably priced is not enough. If there is no emotional connection, that customer can easily be swayed to try (and possibly convert) to a similar brand that might be better tasting, more convenient, and possibly cheaper. However, if a customer is emotionally connected to a brand, it is a lot harder to tear them away from it, even if there are seemingly sensible reasons for them to change.

Most of us can relate to this principle in some way. You go to a particular café because the counter attendant knows exactly how to make your coffee the way you like it and hands it to you with a smile and a warm greeting, even if the chain across the street has a shorter line. Or you buy a name brand product even though the ingredients listed on the label are exactly the same as the less expensive generic version, just because you fondly remember your mother using it when you were a child.

We talk of employee engagement all the time as a driver of increased profits, and this article makes that connection abundantly clear. Only an employee who is aware of their company’s objectives and cares passionately about embodying the organization’s values—an engaged employee—will consistently deliver that “Wow” customer experience that will not only keep the customer coming back, but compel that customer to tell others about the company.

“When an employee clearly doesn’t buy into — or even understand — a brand’s promises, it’s hard for customers to become convinced that the brand has integrity. If managers select, position, and train employees to delight customers and reward them for doing so, customers will become emotionally attached simply by conducting business with the brand.” –“The Constant Customer”

Just think about how many times you yourself have stopped patronizing a particular business because of bad service. For you this might have been a minor decision, but customer attrition costs business big time. According to a recent article on CustomerServiceManager.com called “The Dollars and Sense of Customer Loyalty”:

• A 5% increase in customer retention increases profits by 25-125% 
• Acquiring new customers can cost five times more than satisfying and retaining current customers.
• Research shows that 80% of people who do not receive good customer service do not complain. They simply take their business elsewhere.

So, how do you ensure that your employees are engaged and delivering great service, whether they are serving coffee or managing multi-million dollar accounts?

• Communication and consistency: All employees should be aware of the company’s mission and values and have a clear picture of how they can align themselves with them in tangible ways each and every day. Whether you have a corporate intranet that everyone can access or a poster in the break room, there should be no confusion as to what your company expects. Managers need to be in alignment with this message and ensure that it is followed through on in daily operations.
• Culture: Your company culture needs to be customer-centric. It’s not enough to say that “customer service” is one of your values—it needs to be embedded in the way your organization works on a daily basis.
• Empowerment: Nobody likes to be micromanaged, and nothing is more de-motivating than constantly being second-guessed. Give your employees some autonomy in decision-making. You think giving that customer a free breakfast today will ensure that she’ll come back tomorrow despite the fact that we disappointed her today? Go for it!
• Recognize: Reward your employees for going the extra mile, and make sure their co-workers know about it. If other employees see that above and beyond behavior is rewarded, they will get in the act as well.