Good morning everyone,
Everywhere you look you see articles on how to build customer loyalty. Just about every major retailer has a loyalty program. Offers are given with point systems in hopes of retaining customers. These are all great things, but there is one area that businesses are falling short.
What about the new customer that does not know your brand and has no idea how awesome you are? What are you doing for them to attract them?
They have no loyalty to you, or anyone. These customers are lost in the space of who to pledge their loyalty to. These individuals want to believe that if they join your “club” you are going to take care of them, but they have been taken advantage of so many times they are skeptical.
One story I share as of recent is from a personal experience with a large manufacturer of automobiles. I have owned a vehicle from a company that I will not name, but their initials are “G and M.” I take care of my vehicles with great maintenance to make sure they last a long time. This current vehicle has roughly 62,000 miles on it. In relative terms nothing major should happen to this vehicle for quite a while. I also have a 100,000 mile warranty that had the five years recently expire.
On my way home the truck showed me a message of no oil pressure and to turn off the engine. After the truck was towed to the dealer it was understood that the oil pump had failed and that a new one was needed for the cost of $2500 for parts and labor. After some research I have found that this organization has a bulletin out for these oil pumps failing. This means that this is not a rare occurrence.
I contacted the factory rep and met with him at the dealership. We will call him Richard to protect his identity. When reviewing the case about possible assistance Richard stated that they take in account if the customer has had multiple vehicles from this brand in to account if they would help... I asked him if I was hearing correctly. If I had bought more vehicles from your organization in the past then your organization would be willing to help? He confirmed. Keep in mind there have been some major recalls on the vehicle including the braking system failing that the government had to step in and force this organization to mandate a recall.
When an organization focuses only on profits and not on serving the customers whether they have been life long, or are new customers, it never ends well. Doing the right thing consistently is what creates loyalty.
Focusing only on maintaining the customers you currently have loyalty with will erode as they expire. Yes, I have checked the data everyone expires! If you only focus on those that have bought several products from you to generate loyalty at the risk of making things right for a new customer, you will LOSE!!!
Profits and losses should be tempered and not focused on for the short term which most organizations think. Organizations should also not focus on helping only those that have pledged loyalty to their brand, but consistently doing the right thing to generate future loyal “Fans” When “Fans” pledge their loyalty to you, they tell others how awesome you and your organization are. They share stories of how you have helped them and rave about your service. You have sales people selling for you that are not on your payroll. Would you like that?
The results in 2019 did not fare so well for “G and M” and another OEM outsold them for the first time in the truck market. I wonder what that means to the stock price?
Do not take the customer’s payment and walk away from the transaction waiting to see if the customer will buy from you again before you give extra effort. Give the extra effort up front and every time you engage people!
Next week I will help you with a few ideas on how to grow more loyal customers and some ideas of how to gain more fans that will sell your brand.
Have a great weekend!
Sincerely,
Kevin Sidebottom