I saw a great post by Terri Z over at Solo-E about Client Retention. I agree, it really is all about the relationships you create with your clients and the personal investments you make. I think that the low-cost provider might have an edge in getting customers, but the businesses that provide quality customer service are more successful at keeping long term customers. And that's what we all want, right?
Here's a story to illustrate my point:
My mother has recently discovered the lure of Starbucks. She is not a trendy person and is very money conscious, so I was surprised that she's been getting really into going there. (In the past she has always gotten her coffee from gas stations and fast food places.) So, how did they hook this frugal, non-gourmet coffee drinker as a customer?
The first time she went there, it was simply because she wanted a cup of coffee. Not their coffee--any coffee. The next time she went they didn't have any decaf ready, and she had to wait 4 minutes for a fresh batch to brew. To make up for her wait, they not only gave her the coffee for free, but they upgraded the size!
She felt important and like they valued her time. Since that free cup of coffee, she's been returning regularly. She justifies buying their costly coffee by thinking of it as a treat for herself. I think it's great--she deserves to treat herself more.
She tells me she goes there because she likes their Sumatra decaf coffee. When I suggested to her that she could buy some Starbucks coffee grounds from the grocery store, then make it whenever she wanted at home for a much cheaper price, she didn't seem too thrilled.
So, my conclusion is that it's not the coffee that's drawing her there--it's the whole experience Starbucks gives her. The coffee lingo, the friendly "barista", the bending-over-backward to please her, the relaxed atmosphere. The experience, not the product. I know they do have a great product, but the thing is, that's not what's keeping her coming back.
So, how can we transfer this insight into our own businesses? What experience are you creating for your customers? Why do they stay with you? What do they appreciate? What makes them feel special? Like Terri Z said in her post, the best way to find the answers is just to ask them.
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