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Trust
or Bust – A Memorable Model for Building Customer
Loyalty
by
Paul Schwartz
It
costs about five times as much to acquire a new
customer as it does to keep an existing one.
Having a loyal customer base lowers customer
acquisition costs and drives revenue growth as loyal
customers buy more over time and are more inclined to
refer your business to others.
How do you build loyalty with your customers? Start by building trust.
Remember, people buy from those they like and
trust. Whether
face-to-face, over the phone, or via the Internet,
trust is crucial to building customer loyalty and the
long-term viability of your organization.
Just
as a buying decision is more emotional than rational,
trust is really a feeling that your customer has for
you and your company.
Why is this important?
Research has conclusively determined that
information coming into our brain first goes to the
emotional center of the brain.
This means that we feel before we think, and we
make decisions based on this hardwiring.
When a customer feels understood and connected
to you and your company they are more likely to buy
and remain loyal.
According
to Alex Broer, vice chancellor of Cambridge University
and a former director of research at IBM, "the
key to customer satisfaction and repeat business is
not quality, competition, pricing, competitive pricing
and a service department.
They are requirements just to stay in the game.
The key is an emotional link - a feeling of connection
- not just to you but to the customer and everyone
he/she comes in contact with at your company."
Following
is a model for building trust, using the acronym T R U
S T, and based on strengthening the connection with
your customer:
T
= To-do.
Trust doesn’t just happen.
Trust is built on a series of actions, or
“to-do’s” or “ta-da’s.”
Making information readily available,
delivering on promises to your customers, and meeting
expectations all contribute to building trust and
loyalty. Trust
building is an active process.
R
= Relationship/Respect. Remember, you’re not just closing a sale; you are opening a
relationship with your customer.
Over time, consider that you’re building a relationship
with your customer, and we do so much like we build any other
relationship. It
all starts with respect.
Do you respect your customer’s time by
attending meetings on time, calling when you say you
will, are you demonstrating reliability and
credibility? Do you treat them the way you would like to be treated?
Better yet, are you treating them the way THEY
want to be treated.
On your website, can a prospect or customer
easily get the information they need or perform a
transaction in a quick and efficient manner?
U
= Understand.
Once a relationship and respect are established
don’t rush to tell a prospective customer how great
you are, or you will lose them.
When asked what we do, how many of us launch
into a sales pitch about our skills instead of
phrasing our skill set in ways that are meaningful to
our prospect? Seek first to understand their
challenge, their situation, or their problem.
Not just the business problem they need to
solve, but make an effort to find out what type of
person they are, how they think and how they view the
world. If
you offer professional services, remember that
customers don’t care how much you know until they
know how much you care.
S
= Support.
Once you have clearly identified their
challenge, your goal is to now support your customer
in solving that challenge. It’s not about you; it’s about your customer.
Your products and services should be focused on
supporting the customer in their efforts, and
achieving their goals.
Initially you may need to give away some
“free” support to gain their trust.
It will be well worth the investment.
If you are able to truly help your customer and
support them in reaching their goals then they will
see as credible and trust-worthy.
This results in increased trust and the
beginning of loyalty.
T
= Time.
Trust is not built over night; it will take
time, diligence, and attention to putting your
customer first. By
continuing to be reliable, credible, and helpful you
will build trust over time.
The only thing that will happen quickly is a
breakdown in trust.
It can take weeks, months or years to develop
trust with a customer, but it can be lost in an
instant.
The
bottom line:
Seek first to understand your customer; don’t jump to assert
competence, instead try to focus on demonstrating your
credibility; be reliable, valuable, and help your
customer achieve their goals and they will help you
achieve yours.
For
more information about assessing or improving your
customer loyalty please contact
us for additional resources or to schedule an
introductory meeting. Please
visit us on the web at www.congruity.biz
Copyright © 2004 CONGRUITY.
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