When you first onboard a new customer, you immediately enter the honeymoon period. You’re thrilled to be working with them, and they’re thrilled to have your services. You go above and beyond to make them happy. After a few months or even years, the honeymoon period is over and you no longer make them feel special. Instead, you shift your focus to adding new customers because you are trying to grow your top line.
The honeymoon phase reminds me of this song currently playing in my head:
Welcome to the Hotel California
Such a lovely place (Such a lovely place)
Such a lovely face
Plenty of room at the Hotel California
Any time of year (Any time of year)
You can find it here
Unfortunately, you aren’t the Hotel California.
“Last thing I remember, I was running for the door
I had to find the passage back to the place I was before
‘Relax’ said the night man, ‘We are programmed to receive.
You can check out anytime you want, but you can never leave”
Even if your service is “sticky,” or you are so deep into your client’s business that it is difficult for them to leave, you still aren’t the Hotel California. They can and will leave you if you don’t treat them properly.
I often hear stories of how a long-time client suddenly left for a competitor. Firstly, a long-time client shouldn’t ever surprise you by suddenly leaving. If that customer is important to you, then you better make absolutely sure you are in touch with them and tuned into their needs. Secondly, you shouldn’t assume your customers would be with you forever.
You can do many things to keep them happy or loyal or better yet, a raving fan of your services. Unfortunately, there is plenty of competition and innovation beyond the exterior of your company walls, so you have to work hard to keep customers loyal and engaged.
Don’t put all your eggs in one basket
I head CEO and Executive peer groups via Vistage International, and we work on every business issue you can imagine. On the particular topic of client retention, my favorite quote that came out of a session was the phrase “Incumbency is not a strategy.” In other words, don’t hang your hat that all of your existing customers will stay forever while you map out your strategy. You are very likely to have at least some customer churn. However, there are also some things you can do to engage your customers to keep the churn low.
- Use a CRM system. At the very least, you need to have some system in place to stay in contact with your customers on a regular basis. If you don’t have a solid CRM system to help you keep track, get one as soon as possible! It’s important to track your progress, because you can’t manage what you can’t measure.
- Send out a company newsletter. Newsletters are effective, especially if you are communicating general information your clients can utilize. I prefer one-on-one correspondence.
- Conduct business reviews. Quarterly or semi-annual business reviews are a great idea, and you may find in those meetings that your customers need more of what you have. You can also clue you in on where their needs may be changing, giving you innovation ideas for your business.
- Add value to their lives. You can send them an article or book that can help them personally or with their business. Top sales people will tell you to get to know your customers, as well as their spouses and children. If you go out of the way to put them in touch with a Spanish tutor for their daughter, they’ll stick with you if your service and cost are even close to your competitor. Nothing beats relationships.
Make Your Top Customers Feel Special
My client, TIPCO Technologies, is a fluid solution supplier for all industrial hydraulic, and high-purity applications to include industrial grade hoses of all types and sizes. They are the largest stocking distributor in the Mid-Atlantic region.
TIPCO started their TIPCO Platinum Preferred (TPP) program for their premier customers. They even developed a logo, so it’s visible to all TIPCO employees, to remind them to go that extra yard with the TPP clients. The logo is also on all TPP customer paperwork so they feel special. Eventually, TIPCO’s co-owner Rob Lyons would like to have all customers getting that same level of service – deeply embedding the process into the company culture.
Imagine your company being a different version of “Hotel California” – one where your customers can leave, but they don’t want to.
The key to retaining your customers is remembering this: Incumbency is not a strategy. What are you doing on a regular basis to keep your customers? If it is not an intentional, measurable, formal customer retention plan, then start one today.
“Welcome to the Hotel California
Such a lovely place, such a lovely place”
Brian’s Musical Inspiration:
RIFF: The narrative twists in the Eagles’ title track for ‘Hotel California’ grew out of an admiring for the tandem work of another classic rock act, Don Henley has said. “Steely Dan inspired us, because of their lyrical bravery. So, for us, ‘Hotel California’ was about thinking and writing outside the box.”
EAGLES ON WIKI: https://en.wikipedia.org/wiki/Eagles_(band)