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 By Julie Quick
For just a moment, take off your marketer hat and think back to a situation where you were overpromised by a courting company, and subsequently underdelivered once you became a customer. We all have at least one example. Think how emotional you became when this happened — do feelings like disappointed, betrayed, even angry come to mind?
Now picture your own customers experiencing these emotions. Not a happy image. And made even unhappier when those customers react with their wallets.
But that’s what can happen if the transition from selling to servicing is inconsistent or even nonexistent, when the brand falls short of the expectations set during acquisition. Churn rates are rising in many industries. In general, customer loyalty is declining as both consumer and B2B customers become more fickle. Brand Keys, a research consultancy, conducts an annual ranking of brands customers are most loyal to. In 77 percent of categories, the leading brand was different from just the year before.
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Pre-lifecycle counseling
Before jumping into the road to long-term commitment, first understand the milestones. The undesirable path for your customers is one of declining lifecycle, which moves downward from high satisfaction at initial purchase, through stages of disappointment, stagnation of sales and profits, indifference to brand and, ultimately, defection. That’s because while you’re underdelivering, they’re being wooed by someone else’s enticing brand promises.
The desired path is one of growing lifecycle, which moves upward from bonding, to revenue and profit growth, loyalty and, ultimately, brand evangelism as customers spread positive word of mouth about your business.
Let’s walk through some best practices that will result in positive brand experiences for your customers and thus help you cultivate strong relationships.
A happy engagement
After a costly courtship, you have a new customer at your side, and another promise made. Of course, in today’s market, it’s not the product that’s the promise — it’s the brand experience.
To create that total brand experience for new customers, focus on three simple ideas:
- Don’t dial down the volume. Maintain a steady stream of touchpoints. Recognize that first year customers need more communication than at any point in their lifecycle.
- Offer intense product and service education. Make sure your new customer knows all you have to offer and how to take advantage of it.
- Keep the promises coming. Let customers know what’s in store as they continue in the relationship.
Keeping the romance alive
Once the newness of the relationship wears off, how do you continue deepening and strengthening the commitment to the brand? With more flowers and candy. Successful upselling through effective offers is a win-win, giving you the chance to continually pursue your customers. Just remember:
- Relevancy. Too many companies push offers that are self-serving, not customer-serving.
- Tonality. Position the add-on as a way to get more from the base service.
- Target. Right offer, right customer, right time.
- Exclusivity. Give your customers an offer just for them.
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Tying the knot
So you’ve bonded with customers and grown the relationship. And customers have rewarded you with their wallets. Now it’s time to say, “I do,” with a loyalty program.
At the heart of the best loyalty programs is a strong appreciation for the customer. These programs are about more than earning long-term rewards. They come with a sense of status, that the customer is on the “inside track” and receives special treatment. Exceptional customer service and ongoing elite communications reinforce this status. |
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 A long-term commitment
You’ve worked your way up the lifecycle model and now, with customer loyalty well established, you have the opportunity to leverage those relationships to build positive marketplace buzz for your brand. It’s called brand evangelism. And it’s seldom maximized.
A recent study reports that while over 80 percent of customers say they would be willing to give referrals, only about 20 percent are ever asked. Only a tiny portion is ever equipped to actually do it. Don’t miss this opportunity to get customers more emotionally invested in your brand:
- Create communities. Allow passionate customers to share their stories and hear from others.
- Ask for and reward referrals. Let customers know that you appreciate their efforts as surrogate salespeople.
- Empower word of mouth and word of mouse. Provide a newsletter that brand evangelists can pass along to a co-worker to describe your services. Or use the online environment as another referral resource.
The significant investment during the courtship phase is lost completely when the spice in your relationship fizzles and your customer leaves you for good. So, keep your vows — it takes work, but yields rewards in lasting brand loyalty.
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Julie Quick is Vice President of Marketing at First Marketing. This article is based on a recent presentation Julie gave at the North American Conference on Customer Management. For a CD of the original presentation, contact Julie at jquick@first-marketing.com.
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