Customer Satisfaction is Just the Beginning

Don't get caught wondering why, oh why, your customer or prospect left you or gave you a bad rating (then left you). So, you think that you are satisfying your customers? So, what? Please read this article to verify what the sales industry has found to be the biggest mistake we can make when it comes to assuming that satisfying our customer is enough...

There was a time when targeting Customer Satisfaction as a goal was a worthwhile pursuit. Unfortunately, in most markets, that time is long gone. Today, satisfied customers switch suppliers all the time. In other words, Customer Satisfaction is the table stakes for the game of business.

What all business owners should be striving for is Customer Loyalty. Customers switch for a variety of reasons. Here are the top 6 reasons:

• The customer dies (1%)
• The customer moves (3%)
• The customer tries a friend (5%)
• A competitor paid them a visit (or called) them. They seemed nice and the offer was reasonable so they tried them out (9%)
• You don't have the right product or price (14%)
• The customer felt that the supplier did not really care whether they came back or reordered. In other words, perceived indifference (68%)

And to make matters worse, 95% of customers that are dissatisfied vote with their feet; they don't return and they don't complain. They just walk away, quietly. In order to achieve customer loyalty, you need to shoot way beyond satisfaction and aim for customer delight in every customer interaction.

Customer Delight Formula: Positive Result > Customer Expectation = Delight
There are two fundamental ways to increase customer delight:

• Provide more positive results
• Create more favourable expectations. Many customers (especially novice buyers) have unrealistic expectations. For example, real estate sales people will tell you that many buyers will have highly unrealistic expectation of what they can sell their property for. Trying to cater to these unrealistic expectations by "listing high then pricing down when the property doesn't move" is the perfect recipe for customer dissatisfaction.

Here are four ways to create more favourable expectations:

• Educate your customer. Give him or her the information they need to form a realistic view of the options available. Do this early in the customer interaction. Wherever possible, do this in your printed material and on your web site. Verbal information if often discounted (ie. dismissed as self serving).
• Do or offer something unique. If you aren't different, then people will only judge you on your price and possibly your sales person.
• Stick to what you do well. Don't try to be all things for all people. It will stretch you too thin and increase the chances of expectation gaps.
• Target customers that value your uniqueness. This will ensure a closer match between what you offer and customer expectations. For example, if you are selling high end products or service with lots of value added, don't write ads that place emphasis on price. You will attract the wrong people.

Doing those "little extras" can make all the difference!

Sifting for Gold

When you think of "prospecting", what comes to mind? Perhaps the old grizzled prospector in the gold rush days hunched over a stream in the Yukon, sifting through pebbles, seeking that valuable nugget. 'Sales' is just like that - you have to sift through many potential buyers of your product or service to find those who will actually part with their money. However, common sense says that you would prospect in the streams known to have more nuggets, and use methods that are more likely to produce what you are in search of.

A well thought out, organized approach to business prospecting will enable you to increase the number of pre-qualified prioritized prospects, increase the effectiveness of initial contacts for new business, and shorten the time needed to engage high potential prospects and convert them to new clients.

Here's some ways to narrow your search:

• Market research to identify target markets
• Profile ideal customers
• Who is most likely to benefit from what you do?
• Who is using a similar product now?
• Read trade magazines, articles and stories
• Discover what niches you can fill.

Where do I find Prospects?

• Family, friends, acquaintances and those they know
• Former business associates, customers
• Hobbies, sports, neighbourhood, children's activities
• Civic clubs, associations
• Self-improvement activities
• Where you do business
• Ask for and use referrals
• Observe - be alert to potential clients
• Speaking engagements
• Lists and directories
• Drop-bys
• Telephone cold calling
• Conduct a seminar - build your credibility and recognition

Constantly 'have your radar up'. Learn to see prospects everywhere. Expect prospects to enter your life. Believe you have a solution for them! Prospect regularly and consistently. It is important to block off specific time on your calendar for prospecting activities such as phone calling and emailing. Treat your prospecting time with the same respect as you would any other important appointment or it will slip through the cracks. Set the tone by closing your office door and have your incoming calls held unless it is a call from a client or a prospect.

In summary, know that prospecting is a vital business activity. Develop and use a system. It's how you will discover gold! Make sure that it is part of your regular routine, and constantly strive to improve your productivity.