Today we are going to cover
Trust, Loyalty, Second Chances in business are all a thing of the past?
Over the last 20 years, our business landscape has changed dramatically and is accelerating at lightspeed including the Speed of Trust in your market. This new world of fast information means if you consistently get it right you can cash in faster than ever before but get it wrong, and you can Fall Off a Cliff overnight.
So, what is the true cost of getting it wrong in the eyes of your clients? Because at the end of the day the perception of your market is Law, pleading ignorant to it is no excuse and will ultimately be catastrophic.
I can remember when I was a young boy; every Friday night would ride my bike up to the local Fish and Chip shop and pick up dinner. One or two pieces of Fish and two dollars of chips, our families weekly treat and with a couple of pieces of bread, and some Tomato Sause would feed four of us.
The Italian family that owned the shop worked hard, old school and consistent a cornerstone of the community.
The conversation was never what are we having for dinner on a Friday night it was a given “Fish and Chips” and the same shop rain hail or shine year after year we never changed.
Choices were limited; loyalty was much stronger the market was much more forgiving; business owners could get away with being average and live on to see another day.
NOT ANY MORE…
The most expensive function in your business is to get a client, and it costs 5 times more money to get a new client than hold the ones you have, and with competition at an all-time high it’s no wonder business, owners are working harder and paying more to stand out, and break through the clutter.
And when they finally get their stars to align, attract and convert their ideal clients, they treat them like a number, don’t go deep enough and spend enough quality time to understand their needs at a higher level and as a result, are leaving “serious money on the table.”
Why because they think it’s more profitable forgoing building relationships with their “Best Payday Clients” and instead put all their energy into desperately looking for the next opportunity…
Let me give you an example and with this example understand when I find a good business, I tend to stick with them, and I mean for years. I like to reward good value; I think most people do it is human nature. “The Law of Reciprocity”
I moved into a new area 6 months ago, and that meant finding a new coffee shop. I found one 5 minutes’ walk away, and it was quiet 20 seats with an average of only two people in the shop.
You would think a quick prompt, personalized valued client service. “The Holy Grail” NOPE!!!
After going there almost every day for 2 weeks and ordering the same coffee do you think the owner or any of his staff remembered what type of coffee I drank?
NOPE, every day they asked me the same question “How can I help you.”
Do you think they took the time to ask for my name?
Do you think they gathered my details phone number etc.?
Do you think they found out that I was 5 minutes’ walk away?
Do you think they asked me what my favourite meal was and incentivized me to increase my order?
Do you think they knew when my birthday was?
Do you think they rewarded me or incentivized me to purchase more, come back more often, refer my friends or neighbours?
Do you think they contacted me and provided value and made me irresistible offers?
Do you think they went the extra mile for me and then incentivized me to do a favourable review on Google?
Do you think their shop was busy?
NO, it had some spikes but mainly dead
My last straw…
After persisting buying from this company for three weeks and being processed like a number and on top of that them getting my order wrong for the 3rd time coupled with average food and coffee.
I finally brought it to the attention of the owner? And guess what? he blamed his staff for not listening to him and doing everything wrong. Yes, he actually blamed his staff member to me in front of the staff member.
Going on to tell me that “It was not his fault and if he could find better people and they listened and did what they were told that my order would not be wrong” And that I should be more understanding because he was doing his best.
I now walk an extra 15 minutes and bypass this store every day never to return.
So, do you think they are wondering where I have gone?
And even if they did wake up to the fact that I had not been in for a while, do they have a method to contact me and try and win me over and get me back?
They like most people are madly scrambling to find their next client and think that that is the solution to fix all their problems.
NO, it’s not.
Let me show you the cost of losing me as a client for that small business.
Two coffees a day for my self and my wife $72.80 per week
Two breakfasts or maybe a lunch once a week average of $64.00 per week
That is a total of $136.80 per week now X that by 52 = $7113.60 PA gone. Now factor in all the other past customers who have left because of the same mediocre service?
Factor in not recommending any of my friends or neighbours to this establishment or even actively warning them not to go there.
You can see how easy it is to lose clients and never get them back and on top of that watch, hundreds of thousands of your hard-earned money being flushed down the toilet.
It’s no wonder the coffee shop owner is scrimping and scraping to keep the doors open having to find new staff every week all while spending his last dollars on trying to get a new client.
But I see it playing out across businesses just like yours every day causing businesses relentless problems
It breaks my heart because I know what the knock-on effect is on families, your health and not to mention zero chance of ever selling your business and cashing out.
So, what’s the solution? GET STRATEGIC…
The key to this strategic thinking is to provide your customers with a continuous stream of products and services that meets their individual wants and needs.
“That’s right finding out what they want and give it to them.”
That starts by applying resources and leverage in just the right areas of your business that give you the biggest bang for your time and money, (1 plus 1, = 4)
And there are just three simple steps to follow to make this happen, firstly, collect your customer’s details via a promotion or incentives etc.
If you provide a quality product and or services, then your clients will be more open to doing more business with you in a variety of different ways.
“The new paradigm.”
As I mentioned the most expensive thing you can do is get a client, and it costs 5 times more money to get a new customer than to keep the ones you have.
Stop the madness of investing your hard-earned money, time, energy, effort and capital attempting to acquire new customers, and instead, focus on maximizing the current clients you already have. This is counter-intuitive and means targeting your two types of customers.
FIRST, YOUR CURRENT ACTIVE CUSTOMERS.
These are clients that regularly purchase from you because you have established trust and built up goodwill through respect and rapport with each of them, and they value your services. Plus, since they already know like and trust you, they are generally open to purchasing other items and services you offer.
So, ask yourself, what other products or services do your customers need that are related to what you originally sold them? Does the coffee shop you regularly purchase from give you a Coffee card coupon or a value deal on breakfast or lunch?
Change your mindset from what’s in it for you, over to you’re performing a valuable service for your customers by offering those additional products and services that fulfil their needs and stops them landing somewhere else.
(How could you do something like this in your business?)
THE SECOND TYPE OF CUSTOMER TO TARGET IS YOUR INACTIVE CUSTOMERS.
Customers stop buying from you for a variety of reasons. Rather than blame them your staff or the government, ask yourself what else your previous clients can buy that’s related to the original product or service they purchased, even if they don’t need the original product anymore?
For example, if they previously purchased tennis equipment but haven’t purchased again in a while? Maybe they don’t need any more Tennis racquets, but they might need tennis balls or possibly tennis lessons?
A positive reminder is all it takes to reactivate inactive customers.
Many of these customers can be reactivated with a simple text message, a handwritten letter or direct response brochure reminding them of your products and service. I recently had a Physiotherapist send all his inactive patients a Bioactive assessment as a free gift.
January was a slow time for his practice, and he always had excess capacity at this time of the year. That simple, direct response marketing piece caused hundreds of inactive patients to come in for the free Assessment, and 75 of them became clients once again with a Lifetime Value per patient of thousands of dollars.
Sometimes your inactive clients may be unhappy with your services or feel unappreciated, and undervalued in using you. Or they were not convinced in you or your team and decided to use someone perceived to be more competent or trustworthy.
Don’t mistakenly think that once you have lost a client, they are gone forever.
This is a costly mistake. As adversity is an opportunity to make right by showing them you have improved your systems and services, and how you can now deliver on their expectations.
Reach out to them and provide a compelling, valuable offer or a free trial of your new improved product, service or experience, and you’ll be surprised how many you can win over.
In the case where you blew it and failed to meet their needs, you must methodically and patiently earn back their trust. Shift your focus to providing better service.
Send brochure highlighting the new improvements you have made or announce your new piece of equipment or key employees; that you have hired to provide services specifically for them.
Communicate with these inactive clients every month as a minimum. Don’t assume they are not interested.
That’s it for today’s segment I wanted to share with you what is currently happening in the market right now and how to help improve your business journey.
Because it’s something that not many people are talking about and it has massive Up-side potential for you and your business. Plus it cost very little for you to do!
When you master this concept, it will scale your business and enable you to maximize your efforts and dollars spent to get your biggest returns.
This is where I show you how to implement it in your business