Loyal customers come back. Loyalists come back with friends.
-@petershankman #yallconnect
If you have yet to understand that loyalty pays (the bills especially) you are not an entrepreneur. One of my companies, NOLA Ice (we specialize in Original New Orleans Snoballs – but in the mobile form – *shameless plug*) – would not be where it is today if it were not for the customers that took a chance on a “kid” sitting in a trailer selling cool summer treats. It is those same customers that I see week after week 3 years later. It is those same customers who bring their friends and introduce them to our product and our brand – thus providing us with new customers who will come back and will in turn bring friends of their own. It is those customers that I consider brand loyalists or members of the NOLA Ice family.
A new analysis by SumAll, the New York-based analytics company, states that 25% to 40% of the total revenues of the most stable businesses in the SumAll network come from repeat business. What’s more, these customers help businesses weather tough economic times. In a recent 12 month period SumAll found businesses with a 40% level of repeat customers generated 47% more revenue than similar businesses that only had 10% of their customers returning.
Great companies find a way to build a community of die hard, brand loyal customers. The best thing any small business owner or entrepreneur can ever do is to study Steve Jobs and his empire – Apple, Inc.
The Apple Store is the most profitable retailer on Earth. Lets say that again just in case you didn’t understand me before – The Apple Store is the MOST PROFITABLE RETAILER ON EARTH. It boasts the highest revenue per square foot of any retail store, averages more than 20,000 visitors a week and consistently earns accolades for its customer service. Even in Birmingham, Alabama. (lol?)
Honestly, I want you to name one company (just one) with a more loyal, energized customer base. Samsung along with Jay-Z is trying. Maybe Nike and their Jordan Brand (don’t even get me started on that one). But nothing encompasses what Apple has done over the course of its existence to build the customer base that it has created.
What is the secret of great brands such as Apple in building a loyal customer base? Well, relationships is a HUGE factor. Apple, Nordstrom, Zappos – these are three companies that get it.
These companies look at their profits differently than the other guys – they understand that the key to lasting success is long-term sales, not immediate transactions.
They know that getting their customers to come back is how they keep profits strong.
But it isn’t just about the money here…
Apple, Nordstrom, and Zappos are all actively putting their customers’ needs first – doing everything they can to provide real value with their products and services, and that is what builds relationships.
There are certain ways in which to achieve this. For instance, you must provide EXTRAORDINARY SERVICE.
Part of building a loyal customer base, one that returns year after year and not only brings themselves but their friends is by providing them with extraordinary service from the jump. The top companies go above and beyond to make sure that each and every customer has an experience that is both wonderful and memorable.
Secondly, the GROWTH FACTOR.
Here I always thing of these words once said by Zig Zigler: “If you go looking for a friend, you’re going to find they’re scarce. If you go out to be a friend, you’ll find them everywhere.”
This is where the customer experience overrides all other facets of the biz. Here, your number one goal is to provide customers with a greater advantage and get them closer to your desired outcome. When businesses are interested in providing the customer with an experience and actually helping the customer (not just taking their money), the results are much more profitable in the long run.
This is, for instance, why I refuse to get frustrated when a customer asked me “What’s Good’ when staring at our extensive menu. This one question provides me with the opportunity to not only brag on our flavors but to also brag on what sets us apart from other like-minded companies – OUR FLAVORS (and brand, and overall business model – but that’s for another blog post). But by taking the time to engage the customer, and discuss something as simple as a menu allows you to be more personable to the customer, and makes them feel like they are getting more than just a NOLA Ice snoball but are having an actual experience.
The third key to getting customers to return is LISTENING TO YOUR CUSTOMER. One of the first things I did when I first started NOLA Ice as to have a snoball tasting party. This allowed me to get feedback regarding the taste of the flavors and how the ice was shaved. From this one function I knew what I needed to change in order to achieve a true “Original New Orleans Snoball”. Three years later I am still listening and adjusting. One of the best things I could have done was to open up in New Orleans. This allowed me to be in the city when my product was first discovered, and to listen to customers that actually know what it should taste like – because they have grown up on these things. Three years later I am still adjusting my flavors and doing what I can to shave the ice as soft as snow so the syrup hits the ice just so right.
It’s about meeting the customer halfway – listening to what they want to achieve and doing everything in your power to produce that result. It’s about honestly evaluating negative feedback and using it to make the company better, and using positive feedback to expand what you’re doing right…
Customer loyalty makes the difference between consistent profit and struggling to get new people in the door. For, when customers keep coming back of their own accord, making purchases, and telling their friends and family about the great experiences they have, the business benefits from consistent sales, a reduced need to chase leads, and best of all – free word-of-mouth advertising.
Point blank, if you value your customer, your customer will value you and your brand, and that, that my friends, is what loyalty is all about.
#BOOM
Thoughts?
Website: http://www.NOLA-Ice.com, http://www.CaulfieldHoldings.com, http://www.TheNOLATruck.com
Twitter: @NOLAICEBham @TheNOLATruck @NOLAIceNOLA
THE ENTREPRENEGRO 