This post by Ellis Friedman originally appeared on BurrellesLuce‘s Fresh ideas:
Here’s a little dose of reality: no one ever meets the expectations of their customers. You can exceed those needs or your can fall short, and it’s often the little things that add up to make a big difference.
The PRSA Counselors Academy Spring Conference was held May 4-6, in Key West, Florida. Paula Whittington, VP of Agency Relations at BurrellesLuce, attended Stan Phelps’s keynote. Phelps, who is the founder of 9 INCH Marketing and the author of the popular Goldfish Trilogy (recently completed with What’s Your Golden Goldfish), discussed all the ways to make the little things add up in your favor to strengthen retention rates.
Phelps pointed out some brands that have good customer retention, like Wells Fargo, which obtains 80 percent of their business from current customers because they frequently upsell more products, making their clients less likely to leave. Another heavyweight in retention and acquisition is Southwest Airlines. During a time when airlines started charging for bags and continuing to charge fees for ticket changes, Southwest advertised free checked bags and no change fees. Finally there’s Zappos, which invests back in its customer experience with free shipping, returns for up to a year, and an easy exchange policy.
Differentiation is about the little things; while 80 percent of companies believe they provide a superior experience, only 8 percent of their customers agree. Here are a few tactics – and real-world examples – from Phelps for setting your brand apart.
The Throw-In/ Add-on: Throw in something small but restorative to really ramp up customer experience. DoubleTree Hotels offers warm, fresh-baked chocolate chip cookies that make their guests feel welcome.
Sampling: This is the classic ice cream shop tactic, but you can take it to the next level like Izzy’s Ice Cream, which gifts a free scoop of a new flavor to try, and will also tweet or text when a customer’s favorite flavor arrives. Personalization and generosity go a long way in customer acquisition and retention.
First/last impressions: Enhance a client’s experience with first and last impressions. They’re the most lasting and visceral, so don’t overlook them. The Hard Rock Hotel offers Gibson guitars and headphones in the rooms, as well as a TV channel featuring guitar lessons.
Pay it forward: Offer to do something nice for people, even if it means doing something for free. Unemployed, but really need your suit cleaned? Plaza Cleaners in Portland, Oregon will clean that suit for free. And Discount Tire will repair a flat tire for nothing. Paying it forward creates goodwill to create loyal future customers.
Add on a service: Like paying it forward, you can also create goodwill by providing more than just a basic service, like Safelite AutoGlass. Not only do they send you a picture of the technician coming to repair your windshield, but they’ll clean and vacuum your car during the ten minutes it takes for the windshield epoxy to harden and cure.
Follow Up: Handwritten thank you notes always go a long way. But it’s easy for follow-ups to slip through the cracks when something goes wrong, and that’s the most vital time to make an overture. Nurse Next Door, a home care service, does this with humble pie: if there’s a mistake, the company owns up to it, and delivers a fresh baked apple pie as an apology. Nurse Next Door estimates that the $1,500 they spend on pies annually saves them about $100,000 in business retention.
At the very least, think of Walt Disney, who in 1957 decided to have a parade in Disneyland every day in December. This cost him the modern-day equivalent of $4 million, and his financial advisors were against the idea, but daily parades survive to this day, the most frequently asked question at Disneyland is, “What time does the parade start?”
Tactics that set your brand apart should be a signature product or service of your brand, and really make you different. It might cost you money, but if done right, the benefits will be more of an investment than a cost.
Today’s Lagniappe (a little something extra thrown in for good measure) – I had a chance to sit down with Doug Simon of D S Simon for an interview in Key West: