More Resources

Home > Management > Leadership > 4 Ways to Gain Customer Loyalty
Ray Silverstein: Leadership

4 Ways to Gain Customer Loyalty

Stand out on the cheap with superior customer service.

I recently dined at a very old, very famous restaurant in Chicago. I’ve been pondering the subject of customer service ever since.

This restaurant--let’s call it The Old Gray Mare--was once the gold standard of American seafood restaurants. It was celebrated for its outstanding menu, classic decor and responsive service. When you made a reservation there, you could count on having an exceptional evening.

This time around, it was anything but. Thank goodness I had a lively dining companion; otherwise the evening would have been a total disaster. The decor was outdated, the food was average and the wait service was slow and unresponsive. The Old Gray Mare--she ain’t what she used to be.

This is a perfect example of what not to do in business. Don’t take your customer or market position for granted. Don’t let your service capabilities slide. Don’t coast on your reputation while allowing your brand to deteriorate. Inevitably, it will catch up with you.

Evaluate Your Business
What is your customer experience like? Are you “wowing” key customers with personalized service? With so much business occurring online, wows aren’t easy to come by these days. To make your company top of mind, you must find ways to build vibrant personal customer relationships, even in the digital age.

It’s not enough to provide decent service--that’s expected. Poor service certainly will get you noticed--but with negative results. Case in point: you won’t find me at The Old Gray Mare ever again.

Your brand is only as good as your last touch with the customer. While small businesses don’t have the marketing dollars to create major brand awareness, they do have the ability to craft a brand in their target market by providing service excellence. That’s how you achieve top of mind. That’s how you earn last look on proposals.

4 Ways to Gain Customer Loyalty

  1. Ensure you have the right people. If you’ve been tolerating an unenthusiastic service representative, get them out of that role ASAP. They’re hurting your business. Remember, there is plenty of talent to choose from right now.
  2. Offer a customer service refresher course. Get your employees focused on your customers. Put incentives in place and recognize above-and-beyond service.
  3. Review your workflow. Look at your processes from your customers’ point of view. Are you inconveniencing customers because of systems limitations?
  4. Listen to customer complaints. Fix problems fast and bend over backwards to make things right. Customers can do you a huge favor when they offer valid, eye-opening feedback, even if it’s not what you want to hear.

The current business environment is difficult, but now is the time to enhance your customer relationships. When things improve, you’ll reap the harvest. Providing great customer service is not expensive, in fact, it’s cheaper since it spares you the labor of making corrections, issuing credits, mending fences, etc. But, most importantly, you’ll keep your customers coming back.

We are always eager to land new business, but now’s the time to focus on retaining existing customers, too.

Ray Silverstein is the president of PRO: President’s Resource Organization,a network of advisory boards for small business owners. He recently took his own advice and expanded his business to include The PRO Alliance, the peer group experience, minus the peer group. Silverstein is also the author of The Best Secrets of Great Small Businesses.

Marketplace

Learn how to distribute a press release

Try our new online printing. theupsstore.com/print
Today on Entrepreneur
Entrepreneur Connect
How do you feel about Windows 7?
Do you use Windows 7 to run your business? If so, why? Is it better than Vista? Let's also hear from the Mac people out there.
Resource Centers
Where Business Gets Done
Revisit the lost art of the meeting, the pitch, the presentation and the all important handshake to close the deal.

Insurance Center
Review your company's needs, save on workers' comp, protect your business from lawsuits and more.

Startup How-To Guides
Step-by-step guides to launching your business.

Commercial Vehicle Center
Get the right ride for your business.


Sign Up for the Latest in:
e-Business & Technology
Franchise News
Business Book Sampler
Starting a Business
Sales & Marketing
Growing a Business

E-mail*
Zip Code*