The problem with many businesses today is that they strive to satisfy customers. What’s wrong with that? Well, customers expect satisfaction, so satisfaction is now a basic requirement for doing business and keeping customers. Companies ready to advance beyond the basics look for ways to really WOW customers and to be different. But not “wow” or “different” in the sense of a one-time magic trick or gimmick....
Keeping customers requires a different approach to treating customers throughout their relationship with the company. And smart business people know the proven facts that increasing customer retention by as little as 5 percent can mean as much as a 95 percent increase in profits.
One company that chose to be “a different kind of company” is Saturn, the car company. Witness a mission statement that begins with “Earn the loyalty of Saturn owners” and includes being the world leader in “customer enthusiasm.” To create the company that would eventually become Saturn, teams from General Motors spent 50,000 hours studying industry leaders and visiting 60 benchmark companies all over the world.
After studying the way that Saturn is different in the way it treats customers, I distilled its best practices into six areas that span the customer relationship process-before, during, and after the sale.
Look at each of these areas in your business and discover how to WOW customers and be different from your competition.
1. Create interest.
Besides great commercials, Saturn utilizes plant tours, an interactive-exhibition welcome center, cut-away car display in showrooms, and detailed information on its Web site-just to name a few. Saturn also recognizes that earning great word-of-mouth referrals first requires meeting those minimum satisfaction expectations by building a reputation through quality and value.
What can you do? Open the doors-let people experience your processes, products, or services. Creatively advertise in ways or places not crowded by your competition. Anticipate the everything-you-always-wanted-to-know questions and include the answers on your Web site. Acknowledge referrals from existing customers and make the referral process easy and inviting.
2. Help customers feel welcome.
Saturn’s “Customer Philosophy” includes the reminder: “Above all else, treat customers the way they wish to be treated.” That philosophy is reflected in the design and appearance of showrooms and service departments, and in the fast, friendly, helpful response to customers by phone, mail, e-mail, and in-person. Although it’s an automated system, most callers to Saturn’s 800 number are talking to a real person within 13 to 20 seconds. Information requested by mail is sent within 24 to 48 hours.
What can you do? Take care of your business appearance, and schedule to monitor it frequently using an inspection checklist. Ensure that customer-contact employees are people-friendly, and train them on the importance and perspective of customers. Establish speedy response times for phone, mail, and e-mail inquiries.
3. Make the buying process easy.
Saturn revolutionized the industry through its “no-hassle, no-haggle” sales approach, making car-buying the pleasant experience that it should be. Sales staff schooled in and practicing the “consultative sales process” contribute to an easy experience and the relationship-building process. Accessible, easy-to-read and understand literature and forms reduce the hassle, fine print, and jargon.
What can you do? Simplify the pricing process and make it easy for each buyer to customize his or her desired options. Use a relationship-selling process and reward sales staff accordingly. Train, train, and train continuously. Obtain an unbiased assessment of your literature readability and availability.
4. Communicate AFTER the sale.
After you’ve written the check and driven home, according to the Saturn owner’s handbook, “...now is when the real stuff begins.” Standards call for new owners to be contacted at intervals of 3, 30, and 60 days after purchase. The “real stuff” includes thank you notes, phone calls, a “welcome to the family” packet, an invitation to a new owner’s workshop, and maybe even a gift certificate. Communication is ongoing with service reminders, birthday cards (for the car!), and invitations to customer appreciation events.
What can you do? Find relevant ways to thank customers for their purchase. Establish standards, methods, and time frames for follow-up. Encourage ongoing two-way communication through service, check-ups, seminars, assistance centers, surveys, newsletters, events, e-mail, or other means.
5. Solve problems.
Just ten months into production of the new Saturn cars, one of the suppliers for engine coolants misformulated a batch. Instead of cooling, it could eventually destroy the engine. Saturn responding by sending a letter to owners via registered mail offering them a choice of a brand new car or refund of the full purchase price. This “preventive maintenance” won customers over and helped pave a positive future for Saturn.
What can you do? Anticipate and prevent problems for customers before they happen. Listen to customers to learn about their concerns. When problems occur, respond promptly, and keep the customer informed during any resolution process. Don’t just solve the problem-exceed expectations.
6. Keep customers coming back.
To say thanks to customers and celebrate its fifth anniversary, Saturn invited owners to the “Homecoming”-a weekend of fun, food, and tours of the plant in Tennessee where their car was “born.” About 44,000 people showed up, plus more than 130,000 customers participated that summer in appreciation events at Saturn dealerships closer to their home. Saturn continually says thanks through various appreciation events, and keeps in touch through its CarClub chapters. Plus, service information on every Saturn is recorded and shared on a system-wide database, making it easy for customers to return again and again.
What can you do? Find relevant ways to say “thanks for your business”-if not for every customer, than at least for your most valuable customers. Form clubs for members to share their interests and stay involved with the company. Keep track of customer information like purchases and service records, and use the knowledge to make it easy for customers to continue to do business with you.
WOWing customers means being different-by treating them right throughout the relationship. It may sound simple, but the sad truth is that most companies only focus on attracting or the purchase phase instead of thinking about a long-term relationship. What I heard most from Saturn customers (during research for my book, The Saturn Difference) was that they felt Saturn treated them as friends or like part of the family. Keep that in mind as you strive to WOW customers, and you’ll be on the road to success by making your own difference.
More information can be found in the book, The Saturn Difference: Creating Customer Loyalty In Your Company by Vicki Lenz (John Wiley & Sons, Inc., 1999).
About the AuthorVicki Lenz is an author and speaker on marketing and customer loyalty, and a writer of stories for companies. She can be reached at 502-499-5635 or
VLenz@vickilenz.com.
Vicki Lenz
8206 Lacevine Rd.
Louisville, KY 40220-2893
Tel 502-499-5635
Fax 502-499-7266
vlenz@vickilenz.com
Copyright 2000 by Vicki Lenz. Used with permission.