Do you know what its costing you? Lets face it, keeping a customer is less expensive than finding one. Research by business consultants firm The Brookeside Group and the author of "Great or Poor" Guy Arnold, conclude that companies can boost profits by as much as 85 percent by focusing on why clients stay with you.

1. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com
© 2012 Taico® Incentive Services Inc.
Customer Loyalty. How to get some.
Losing a customer remains at the top of an organization's nemesis. Gaining a new customer on one hand but
watching an existing customer leave you is like pouring fine wine in a
glass with no bottom. Depending on the industry you are in, it takes big
money and time to win a customer.
Do you know what its costing you? Lets face it, keeping a customer is less
expensive than finding one.
Research by business consultants firm The Brookeside Group and the
author of "Great or Poor" Guy Arnold, conclude that companies can
boost profits by as much as 85 percent by focusing on why clients stay
with you.
Customer loyalty can also have the same impact as reducing operating
costs by as much as 10 percent. American Express weighs in with their findings. "Consumers are willing to pay an
average of 36 per cent more for a decent pub meal if the service, food and atmosphere are of a high standard."
Unfortunately many larger organizations still put their bucks into huge sales and marketing initiatives but cut back,
to their peril, on customer service analysis and training of employees.
When it comes to boosting customer loyalty, bigger companies don't always know better.
The good news is that you can dramatically improve your own customer loyalty by understanding the impact your
workplace culture has on customer retention.
Here we will map out some simple observations to put you on the right course toward employee engagement and
customers remaining on board.
Building a customer centered culture focusing on customer service and customer experience will help you influence
customer loyalty. We all know what its like to receive great customer service. What we may not know is our decision
to stay with a company is more about our overall customer experience. Although an essential part of your
customer's overall experience, it is just a part of a larger equation. It is possible to provide great customer service
and fall short of their experience with you.
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2. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com
© 2012 Taico® Incentive Services Inc.
VP and research director Harley Manning of Forrester Research defines customer experience as “how customers
perceive their interactions with a company along each step of a customer journey, from discovery, to purchase and
use, to getting service.”
What is your client's perception of your company? Is interaction with your organization conducive to them staying?
Is your customer’s recollection of their entire experience with you, from start to finish, at all touch points, a good
one? Although customer service helps to shape the overall customer experience it doesn’t fully define it. Customer
service is generally about assisting your customer with a specific need or problem. In their book "Outside In", Harley
Manning and Kerry Bodine note:
“People call customer service when they have a problem. So equating customer service with customer experience is
like saying that a safety net is a trapeze act. Yes, the net is important to the act. But if the performer needs to use the
net then something has gone wrong with the show.”
You can turn any potentially negative experience into a positive one if you can anticipate your customer's needs in
the beginning. Train your sales people to be champions which will also help them provide a great customer
experience.
The influence your employees have on how your company delivers a great brand experience can not be
overemphasized. An engaged workforce creates a performance culture which becomes visible to your customers.
When problems arise, as they certainly will, your employees will be up to the task of providing a positive customer
experience. Engaged employees are deeply involved in figuring out how to meet your organization's objectives for
the good of all.
Creating the perception as a caring organization will resonate well within the marketplace. A salesforce armed with
product knowledge will also boost sales and customer retention because you can better answer questions and be of
service. An employee recognition and rewards program that encourages positive behaviors such as wellness and
performance achievement will seem magically to contribute to your customer's experience. When customers are
happy they stick around.
When customers stick around your business does well which boosts moral. When moral is boosted performance
goes up. In short your efforts translate into strategic and financial success.
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3. Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com
© 2012 Taico® Incentive Services Inc.
Remember that by addressing employee turnover you will also contribute to customer retention. You might want to
consider a Peer to Peer recognition program as an effective, low cost approach for reducing employee turnover,
boosting performance and morale.
Some of us may have read about the popular S&H Green Stamps back in the early 1990's. (also called Green Shield
Customers. Customers would receive stamps at the checkout counter of supermarkets, department stores, and
gasoline stations among other retailers, which could be redeemed for products in the catalog.
No one can deny that Green Stamps did much to keep customers loyal. Their employees were also engaged and
excited about the program. We have learned much from Sperry & Hutchinson company (S&H), founded back in 1896
by Thomas Sperry and Shelley Byron Hutchinson.
Today our knowledge of customer relations has evolved and now includes the use of more sophisticated CRM and
ROI technology. That fact doesn't diminish one vital basic fact. Customer loyalty begins with creating employee
loyalty. Being more in tune with your employees' emotional and social needs connects them to your customer's
experience and loyalty. Developing customer loyalty consists of innovation, cooperation and a healthy
communication mechanism between management and employees will contribute to your efforts in providing the
ultimate in customer satisfaction.
Put a higher value on these facts and learn how you can keep more customers around.
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