Exceeding Expectations: The Loyalty Link!

by TERESA ALLEN, author "Common Sense Service"

It can be said that few companies meet customer's expectations.  Even fewer consistently exceed customer expectations.  And yet, exceeding a customer's expecations is the straightest path to loyalty - the level of relationship where competitors simply do not exist in the customer's mind.

Think about your loyalty quotient.  To what businesses are you loyal and why?  If you will take a few minutes to think about this, you may discover the link to loyalty in your own business!  Is there a restaurant you regularly frequent?  Why?Probably NOT because they serve good food - that is expected and many restaurants fill that need.  It could be because their food is exceptional every time, the service is exceptional, and the atmosphere unique.  To achieve loyalty, then, we have to surpass just being good at what we do.  And, loyalty must be identified as a goal of the organization. 

In a recent study done by the Ken Blanchard Company, 74% of respondents declared that their organizations were highly focused on customer service improvement.  However, only 44% indicated that their organization had a formal process for acheiving these desired service improvements.  Another 57% have not calculated the cost of losing a client and 36% rarely conduct a customer service audit.

Herein lies the OPPORTUNITY... focus on loyalty and you will be a standout.  And being a standout will naturally increase loyalty by its own definition!

One statistic has remained stable over time.  It costs about 6 to 7 times as much to attract a new customer as it does to develop a loyal one and grow the business from within your existing customer base.  What are you doing to increase loyalty in your customer ranks?

When is the last time you conducted an outside audit on your customer service?  Our company recently conducted observations of a large customer service department.  As is often the case when we conduct such an audit, there were obvious impediments to excellence in service.  Some were structural and some were personnel related.  All were fixable, some easily fixable.  Yet it took a few pairs of outside eyes to see what familiar eyes could not see.  I remember my father telling the story of coming home from the military during WWII and exclaiming to his German immigrant father, "Papa, you have an accent!"  "Of course I have an accent," his father replied with yes, a thick German accemt.   Only after my father had been away from hearing it every day had he noticed it!  Similarly, in our own organization, we may be blind to the simple fixes necessary to improve service and develop loyalty.

So what are the action steps we need to take?

1.  Decide that customer loyalty is a top goal of the organization.

2.  Conduct an outside service audit to see how you are doing with customer expectations.  Identify where you are meeting them, where you are beating them, and where you are falling short of expectations.

3.  Make structural changes identified in the audit that will improve service and build loyalty.

4.  Train staff, especially front line in areas identified as weaknesses in your audit.

5.  Hold managers accountable for staff ability to meet and exceed customer expectations.

These five steps will put you on the road to loyalty... a road that will build profits as well as customer relationships!

Teresa Allen is a nationally recognized business consultant, speaker and author. She is often asked to present her dynamic motivational programs on customer service, sales, and communication which help businesses and organizations who want to build success and profits through enhanced employee performance. She can be reached at 800-797-1580 or by email: tallen@AllenSpeaks.com  or through her website: www.AllenSpeaks.com

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