Holding on to Customers

In today’s ever important service arena the key to winning customers has nothing to do with price or even product. It’s more about emotional connection. In the past measuring customer loyalty was a challenge mostly because organizations didn’t understand loyalty. We now know that loyalty is tied to consistent and positive points of connection. Because emotions are perceived as soft, messy, and hard to deal with, emotions make many organizations nervous. Organizations can’t ignore this critical ingredient anymore because the emotional connection with a customer is the basis for creating and building customer relationships.

How can we measure the emotional effect on loyalty? The Gallup Organization suggests using measurements that assess things such as overall brand loyalty, confidence, integrity, pride and passion for the brand. The brand can be the company’s name, its products or services, its

people, its policies, etc. Although many of these areas refer to the products or services, connecting with a service provider has a huge impact on the customer’s perception of the brand.

If you want to find out who your loyal customers are, find out how likely they are to recommend your organization to someone else. Remember, one of the key measurements of loyal customers is their desire to recommend your organization. There is a direct and strategic correlation between an organization’s revenue growth and its customer loyalty score.

How does your organization’s measure customer loyalty score?

Holding on to Customers

A Customer Driven Organization

The economy is down, and challenges are up. Business owners are desperate for business success. The key to success is creating a customer-centric business.

A customer-driven business is one that has recognized that the typical organizational structure with the CEO at the top must be turned upside down to put the focus on the customer. The vision of the organization includes the customer, and the focus is no longer just on customer satisfaction. Today’s focus is on exceeding customer expectations.

Becoming a customer driven business means everyone’s collective efforts being focused on the vision of the organization and the mission at hand. Exceeding customer expectations is no small feat. Leadership must ensure that this value is consistently communicated, which helps foster a team culture that is solidly entrenched in achievement, continuous improvement, and customer focus. An organization can only survive if customers are satisfied. But the organization will thrive if customers are captivated by a memorable customer experience.

Create customer loyalty by going the extra mile for your clients. Look not to satisfy them, but to exceed their expectations. Do more than they expect and you will delight them. Word of mouth referrals are still the most powerful form of advertising. Delighted customers tell others who, when delighted, will tell others and so on and so on.

Consistency is very important toward creating customer loyalty. Many businesses are very accommodating with a new customer, but tend to get lazy as times goes on. They focus on getting new business (which costs five times as much as keeping a customer) instead of revitalizing and improving existing business. As a result, they fail to maintain their service standards with existing customers. Research also shows that 70% of the customers that take their business elsewhere do so because of poor or rude service.

Nothing is more important to an on-going business relationship than honesty and integrity. Live up to and exceed those customer expectations!

A Customer Driven Organization

Set Aside the Profit Motive?

“The world is upside down”. I have spoken these very words a million times since the bottom has fallen out of the economy. But perhaps we have always been a little upside down, and only now really seeing the results.

I would submit that a significant part of our issue is really the profit motive (blasphemy). Businesses that are least likely to survive these challenging times are most often those that focus more on the profit motive, rather than focusing on delivering a competitive product or service that provides value.

Business owners often ask themselves “How can we make more money?’. But the companies that will sustain success in this economy will set aside the profit motive and ask:

“How can we build a base of loyal customers?”

“How can we efficiently improve the quality of our product or service?”

“How can we deliver it better or faster?”

“How can we improve our product or service so that everyone will want to buy it despite the down economy?”


The successful companies will think outside the box to answer these questions, and make changes to maintain competitive advantage and perceived value. Most importantly, they will not spend dramatic amounts of money to accomplish this. The answers are usually associated with modest changes in their business and operating processes, or customer service procedures. But it does require vision and leadership. To quote one of my favorite leadership authors, Warren Bennis, “The manager has his eye on the bottom line; the leader has his eye on the horizon.”


Companies that set aside the profit motive and instead focus on customers and delivering value are those that maintain their customer base, and their profits. Focus on the customers first, and the profits will come. Consider companies like McDonald’s, or Apple, or Wal-Mart (there are others) who have exceptional customer loyalty, and have remained profitable in this economy. Customer loyalty is a key to sustained success, and these days, maintaining that loyalty is more important than ever before. Just ask the American auto industry.Some findings on customer loyalty...

• 68% of consumers change their place of business for little or no reason.
• It costs between five and seven times more to find a new customer than to retain one.
• A 5% reduction in lost customers can increase profits by up to 75%.
• Only 3% of businesses have a 'lost customer' reactivation program.
• Existing customers are not as price sensitive as new ones, they require less sales time, administration and advertising.
• A first-time customer has a 30% chance of becoming a long-term profitable customer. If they buy three times relatively quickly, their chance of becoming long-term more than doubles to 67%.

Source: Loyalty-Magic.com

Set Aside the Profit Motive?