The Art and Science of Keeping Customers

Posted by Tiffan Clark

A good salesperson can probably sell a product or service to anyone—once. But it’s by mastering the art of customer service that you’ll be able to build a relationship and sell to the same customer over and over again. People don’t buy products, they buy benefits and solutions they believe the product will provide. Customer service is a big part of the benefits that go along with a product or service. In fact, treating your customers right can be one of the best startup business ideas you have ever had.

This shouldn’t be a surprise. In fact, you’ve likely heard the saying that it is more costly to acquire a customer than retain a current one. How much more costly? According to studies conducted by Flowtown, the cost to acquire a new customer is actually six to seven times more than retaining an existing one. So, what things can you do to provide better customer service and keep those customers coming back?

Acquire the right kind of customers from the start. First, try to attract a customer base of people that appreciate your products and services, not those simply looking for the lowest price. Bargain shoppers are fickle and are more prone to jump ship. Second, always assume that a new customer is going to be a long-term, loyal customer and treat them as such. Finally, don’t neglect or ignore your current customers while pursuing new ones. Remember, the customers you need to grow your company may already be the ones doing business with you. This is especially true if you are a new entrepreneur starting your own business.

Keep customers like you keep friends. Your oldest, dearest friends are the ones who you can count on the most. The same goes for your oldest customers. Treat them with the same respect that you would an old friend. Notify customers of the status of their orders, let them know when there are updates on products or services, or send them birthday wishes and thank you notes. Make customers feel special by recommending other businesses that might benefit them and if you’re developing a new product or service, consider bringing in your most loyal customers to serve as a focus group.

Play the name game. According to Dale Carnegie, a pioneer in public speaking and personality development, “a person’s name is to that person the sweetest and most important sound in any language.” Customers seem to listen a little more to what’s just been said, or what’s about to be said, if you call them by name. Whether during a new or routine sale, or handling someone with a difficult personality, you can get your customers to pay more attention to what you’re saying by using their name. Also, by repeating someone’s name at least twice in a conversation you are more likely to remember their name in the future, and people feel astonishingly important when someone remembers their name.

Address complaints quickly and with transparency. According to the Marketing Tips Every Entrepreneur Should Know, fifty percent of people who complained said they would do business with the company again if their complaints were handled satisfactorily. Listen to your customers and acknowledge their complaints. And admit when you are wrong—nobody’s perfect. Complaining involves some inconvenience and possibly expense, so customers who register complaints expect action. Show concern for the customer, personalize your response, and ask questions to identify and analyze the problem. Once you obtain the customer’s ideas concerning possible alternative solutions, do what you can to make things right.

Go above and beyond what is expected. After a customer makes a purchase, follow up on their satisfaction by telephone, direct mail, or email, depending on the size of your business and level of technology. You can also install a simple, automated system that handles your follow up, thus saving you time. Not all companies use a follow up marketing method. By delivering this special service to your customers, you make them feel special and when they feel special, they are less likely to leave you. Entertain your customers by being a destination. Make it fun for people to come to your store or website. The longer your customers linger, the more comfortable they will feel with you and your business, and the more products or services they will buy.

Smile and say thank you. Remember those simple rules your mom taught you as a child? Well, they apply in customer service as well. Smiling shows that you’re calm, in a good mood, and willing to help do what you can for your customers. And don’t forget, a smile can be heard over the phone. Make sure you put on a big grin before answering any calls. Here’s a great example of the power of aubible smiles. And a simple, meaningful thank you can go a long way with customers. Let them know how much you appreciate their business. Don’t assume they know—tell them. Say thank you and ask them for input. In addition you can use this appreciation during the selling process by consistently and effectively communicating with your prospect that you value them.

Keeping customers is both an art and a science. You need to be creative when dealing with customers; always finding new ways to keep them happy so that they spread the word about your company. Also, you should keep track of your customer satisfaction efforts and measure the results. This will ensure that you are always aware of what works and what doesn’t. Using these tactics will assist you in getting the right customers, providing them with what they want, and keeping them coming back.

Tiffan Clark is the Vice President of IdeaCrossing, a free online community created by JumpStart, which connects entrepreneurs with the capital, mentors and technical resources necessary to grow their businesses. Tiffan has worked at several venture-backed startup technology companies and strategic marketing agencies in both Boston and Cleveland.