Last week after returning from an overseas business trip, a colleague asked me to have a photograph taken with a long-time loyal Isuzu customer, upon his request. While I was out of the office, he purchased a new Isuzu MU-7 multi-purpose vehicle to add to the many Isuzu pickups and trucks already in his possession. He insisted that I officially deliver the vehicle to him for his photo collection.
After the delivery ceremony, he said to me: "I am your customer for life. I will continue introducing you to new customers to help expand the Isuzu community." I was overwhelmed by his encouraging words because I knew he really meant them.
"A customer for life" is the ultimate goal that all businesses would like to achieve with each and every target user. In reality, it is impossible to satisfy 100 per cent of customers all the time. Despite that, we all know that the more existing customers an organisation can retain, the higher profit margins and lower costs it will enjoy.
In this digital age, some companies tend to think about database marketing and customer-relationship management software for their customer-retention programmes and overlook the importance of dealing with customers in person. While various incentives like VIP cards, point collections and special gift vouchers are put into practice, an organisation must also undertake activities to reach out to customers and monitor the environment around them, for instance, thank you parties, homecoming events, the handling of customers' complaints, personal interviews, suggestion boxes, customer visits and so on. Masterful strategies must be planned to foster customer loyalty and long-term engagement.
Although the concept of relationship marketing was introduced almost three decades ago, nobody could ever formulate the "relationship theory" that could be applied to all types of businesses. It is said that excellent customer service is a key element in fostering customer loyalty. But that should be a "standard must". You have to go the extra mile beyond that to generate favourable word-of-mouth from your customers that can help multiply your sales enormously. This is because people tend to consider a recommendation from someone they know as the most trusted source of information when deciding to purchase any product or service.
The ability to have interpersonal customer relationships will give you an edge over your competitors. Customers will naturally return to a company that knows who they are and connects with them on the human level.
Cultivating customer-conscious employees at every level to deliver "expectation plus" to customers is a prerequisite for successful customer retention. Not only operational staff, but executives should also have first-hand experiences with customers, as best they can. Keep in mind that expensive CRM software cannot help you if you do not have sufficient knowledge about your customers.
Panatda Chennavasin is vice president for corporate strategies and corporate relations of Tri Petch Isuzu Sales as well as senior vice president for overseas marketing of Isuzu Operations (Thailand). Follow her articles in Hi! Managers on every third Wednesday of the month.