Loyal vs Satisfied Customers – What’s the Difference

by | Jun 22, 2014 |

Loyal customers are much different from satisfied customers. Loyalty Compass

Do you know the difference?

I didn’t but I think I do now.

During a training session this week we explored the differences between the two.

Derek Roberts, our sales coach for this week’s training described the difference this way:

“A satisfied customer says I received value (I’m satisfied) whereas a loyal customer says I received value and I am valued (I’m a loyal customer).” 

Can you see the difference?

A satisfied customer believes they pay a fair price and receive value for the goods and services they receive.

A loyal customer believes the same as a satisfied customer but also believe (know) we value them as much as a customer as they value us.

Transactional vs. Relational

A satisfied customer is more transactional (an exchange of goods and services for money) whereas the loyal customer is much more a relational transaction. They want to be valued as much if not more than the value they receive.

How many companies consider you a loyal customer?

Derek, gave this example:

He has been a long time customer of his Internet Provider. They mostly meet his demanding needs which the other providers in the area can’t. He is subscribed to their premium package and doesn’t require much attention from them. However, when he does have a problem they seem to always mess up. They get the billing wrong, make him wait for what seems like hours to talk to someone. You get the idea. So, Derick is at best satisfied but also feels almost like a hostage.

But he suspects the Internet Provider considers him a loyal customer. He has had a long relationship with the provider. He is signed up for the best packages they have to offer. They don’t hear many, if any complaints therefore he must be loyal.

Derek is far from being a loyal customer. I don’t think he would even consider himself a satisfied customer. He goes all over the country telling this story about how unsatisfied he is with his internet provider, yet I think he is probably on their list as a loyal customer.

A loyal customer will stand up and sing your praises to all that will listen. They are willing to put their reputation on the line for you and your company. They will refer you to their friends, family and anyone they feel you could provide a value. It’s more than a fair price. To a loyal customer it’s about the relationship between you and them.

Satisfied vs. Loyal Employee 

Another good example that I think we can all relate to is a satisfied employee vs. a loyal employee.

A satisfied employee feels they receive value for the work they perform. (fair pay, benefits and working conditions)

A loyal employee also feels satisfied (transactional) plus they know they are also valued (relational).

The benefits provided by both loyal employees and loyal customers are much the same. Both customer and employee loyalty is one of the most important factors in any successful company.

Loyalty vs. Longevity 

We must not confuse longevity for loyalty as I think Derek’s internet provider probably does. I don’t believe time has anything to do with loyalty. I think it’s a common mistake made by many of us. We mistake years of being a customer as a measure of loyalty.

Nor can we believe we can have a loyal customer without them being a satisfied customer first. Without first providing value (I’m satisfied) it will be next to impossible to build the relationship a loyal customer expects.

Conclusion

Will you begin thinking of what makes you a loyal customer and let me know?

I would also like you to start thinking what you need to do to convert your satisfied customers into loyal customers?

If you are blessed with many “truly” loyal customers do your very best to never let them become just satisfied!

The road to having loyal customers begins with satisfied customers first. Once they find value in what we have to offer we must continue gaining their trust and making sure they know how much we value them.

Thank you for taking the time to read this article.

P.S. – If you have been reading my blog for a while and feel it would be of value to your friends, co-workers or other salespeople you know, I would appreciate your recommendation. Your referral would be greatly appreciated.

If you would like, please leave a comment below or you can email me at feedback@wewaonthenet.com.

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A little something extra:

Customer loyalty doesn’t have to be a personal relationship. I consider myself a loyal customer to Amazon. I wish they were local but that’s not to be. I have always been satisfied with their prices, delivery and customer services (I receive value) but it’s the service and contact after the sale that makes me feel valued. I know they don’t know me from Adam but they always ask my opinion of the products I buy. Anytime I’ve needed to return something it has never been a problem. And they are always sending me recommendations of products they think I may need (ok two out of three ain’t bad). I hope you get the picture.

I’m always recommending Amazon and trust that they will treat others as well as they have treated me.

Now let’s get out there and over-deliver!

Referrals – Don’t Be Afraid to Ask

by | Jun 8, 2014 |

In last week’s post “ Six Key Words You Want in Every Referral” we discussed the need for referrals and building a strong referral network.

Referrals may be the single most powerful way to grow sales. A referral from a satisfied customer greatly increases the close rate and chances of success by lessening the close time and increasing the new prospect’s level of trust. Just think about the purchases you make simply on the recommendation from a friend.

Remember, most people like to help other people they know, like and trust.

Our customers are no exception. They are willing to help if we would just ask.

In an article by Paul McCord “The 10 Biggest Referral Mistakes Salespeople Make” he says we shouldn’t be surprised “if you don’t ask, you won’t get referrals.” He suggests that nearly 70% of all salespeople don’t ask for referrals or even bring the subject up with their customers.

So, if we know that referrals are one of the most important tools in our sales toolbox, why are we so reluctant to ask for referrals?

Afraid to Ask

I think we are afraid to ask. We fear rejection, being told no or we think our customers may see us as being pushy. We fear if we ask, our customers won’t like us or worse they will stop doing business with us.

Remember what I said above, our customers want to help people they know, like and trust. If we build our sales on integrity and are thought of as being friendly, hardworking, smart, honest and trustworthy, why would our customers not be happy to refer us to others.

Happy customers are happy to help you. Keep this in mind and you’ll have nothing to fear.

Now’s the time to stop making excuses for not building your referral network. Start asking for referrals. I know you will quickly begin seeing the results.

Go ahead, don’t be afraid, just ask! 

P.S. – If you have been reading my blog for a while and feel it would be of benefit to your friends, co-workers or other salespeople you know, I would appreciate your recommendation. Your referral would be greatly appreciated.

Thank you for taking the time to read this article.

If you would like, please leave a comment below or you can email me at feedback@wewaonthenet.com.

You can also follow me on Twitter at www.twitter.com/WE_Ward where I tweet articles I come across that I think may be of interest.

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Now let’s get out there and over-deliver!

Six Key Words You Want in Every Referral

by | Jun 1, 2014 |

If you asked your best customers to refer you to a friend, what would they say about you?

Would their referral letter or conversation include these six key words:

  1. Friendly
  2. Hardworking
  3. Smart
  4. Honest
  5. Integrity
  6. Trust

Would they say or include a phrase like “you can always count on him doing what he says he will do.”

Maybe, more importantly is what would you hope they wouldn’t say?

Are you ready for a test?

What would you say if you were to refer yourself to a friend?

So go ahead, write your own referral. Be honest.

Does your referral include some or most of the six key words above?

If not, start asking yourself why and what do I need to start doing to get these key words included in my referral.

Does your referral have some things you wish you could change? (Only if you were completely honest.)

Again, you need to ask yourself why and what do I need to start or stop doing to have these removed from my referral.

I know I have asked lots of questions in this article without including any answers.

Conclusion:

A timely referral and strong referral network is a must for a long and successful sales career. Referrals help shorten the time it takes to be known, liked and trusted.

As I’ve discussed before, our customers must know, like and trust us before we can establish strong relationships.

Without strong lasting relationships, long term success in sales will be hard if not impossible to achieve.

If you haven’t already, now is the time to get to work and begin building your referral resume’. Doing the things to make sure when given a referral it includes all of the six keywords (friendly, hardworking, smart, honest, integrity, trust) and eliminating those words and phrases you wish were not included.

I know my six key words are effective and needed in any referral but it is not an exhaustive list. So if you would, please drop me an email or leave a comment below letting me know “What additional key words or phrases you would like said about you in a referral?” Also, I would like to know what words you don’t want in your referrals.

Thank you for taking the time to read this article.

If you would like, please leave a comment below or you can email me at feedback@wewaonthenet.com.

You can also follow me on Twitter at www.twitter.com/WE_Ward where I tweet articles I come across that I think may be of interest.

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Now let’s get out there and over-deliver!

I Didn’t Have Time – My Default Excuse

by | May 18, 2014 | ,

How many times each week do you say “I didn’t have time?”What's Your Excuse

Do you “often” find yourself trying to explain “why you didn’t have time to do what you said you would do?”

Does simply telling your customers, supervisors, family and friends “I didn’t have time” still work or are they beginning to catch on to your default excuse.

Are you really time challenged or is there something else?

Last week a supplier agreed to provide a quote to us on a rather large project by Friday. The supplier went so far as to state “don’t worry we have it covered.” You might have guessed, Friday morning they called and informed us that they would not be quoting the project. When we questioned why, the excuse was “we just didn’t have time.” This was followed by several reasons (excuses) why they didn’t have time but nevertheless we were left scrambling to provide pricing to our customer.

So what did the supplier mean by “didn’t have time.” They knew we were counting on them for pricing. They knew we had made commitments to our customer that depended on them doing what they said they would do. They’ve always told us we are very important to their success.

Couldn’t they have told us sooner they were too busy?

How could they leave us in such a predicament?

Why?

Seth Godin wrote an article in his blog called  “I Didn’t Have Time” that may help answer these questions. Here is an excerpt:

“This actually means, “It wasn’t important enough.” It wasn’t a high priority, fun, distracting, profitable or urgent enough to make it to the top of the list.”

We should have known better than to place such trust on them performing. This was not the first time this supplier had told us “they didn’t have time” but maybe it should be their last.

All right, enough of this rant!

I’m guilty of making this same “I didn’t have time” excuse.

I’ve always known at times I use this same excuse but since reading Seth’s Blog I realize “I didn’t have time” has become my default excuse. I suspect it has become yours as well.

I have a hard time saying “no” when asked if I can get something done, only to find myself overcommitted at the end of the day or week. (This usually results in me working late at night or the weekend trying to make sure I do what I said I would do.) But this does not always work. What I find is the things that end up getting done are the things I think are a high priority, fun and most profitable. The other things seem to fall in the “I didn’t have time” bucket.

In sales we are expected to always try to find solutions or a way to get something done. In other words to find a way to say yes. To say “no” is not in the top of our vocabulary.

However, not doing what we say we will do is not acceptable either. So here come the excuses:

  • “I didn’t have time.”
  • “I would have done what I said I would do if I only had the time.”
  • “It’s not my fault I just didn’t have time.”

This is our way saying “what we said we would do is not urgent, fun or important enough to get to the top of our list.” So instead of saying no or telling our customers the true reason, we just say “we didn’t have time.”

Maybe, we should not be so afraid to say no or at the very least let our customers know we don’t or may not have time to do what’s being asked. (I know I’m beginning to waffle.) This would at least give them a chance to find alternatives.

“Consider making the “not enough time” excuse the first excuse rather than the last.”

Our customers should expect and trust that we will do what we say we will do. By not saying no to the things we know we can’t or won’t do, the trust we work so hard to develop will quickly slip away. Much like the loss of trust in our supplier mentioned above.

Always doing what we say we will do and not overcommitting our available time does and will take effort and practice. There will be times that things happen beyond our control but if we are intentional with our commitments and willing to say no, we should be better far more than not.

The next time you find yourself saying “I didn’t have time” ask yourself if time is the true reason or as Seth says “it wasn’t important enough.”

Maybe, I need to take a lesson from our youngest grandson. At 18 months he has the word “No” down pat. If it’s not a high priority to him (like taking a nap or eating his peas) it’s “no”. If it’s not fun or he feels urgent it’s “no”. Heck, for all I know he may already be only committing to the most profitable. One thing for sure he lets you know his intentions without any excuses.

If you would like, please leave a comment below or you can email me at feedback@wewaonthenet.com.

You can also follow me on Twitter at www.twitter.com/WE_Ward where I tweet articles I come across each week that I think may be of interest.

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Thank you for taking the time to read this article.

Now let’s get out there and over-deliver!

I’m a Worrier and I don’t care much for Kool-Aid

by | Apr 27, 2014 |

I worry that as our businesses succeed and grow, we will begin drinking too much of our own Kool-Aid, forgetting what really matters.Worried businessman

Let’s get this out first “I’m a worrier.” I sometimes worry about how much I worry.

So when I say I worry about sales “going too good” or hear “we’ve had another record sales year” you know that is just me.

My worry is that when sales and business begins growing and it looks like there is no stopping, we might start drinking our own Kool-Aid so to speak and as we grow we forget to do the things we are doing or have done to be successful.

I’ve seen too many times, businesses and sales professionals that are successful begin to falter and slowly fade simply because they forget what made them successful.

Maybe it’s:

  • The personal touch we give our customers as we begin our business that gets lost as we grow.
  • We move to a larger location without taking into consideration the effect on our customers.
  • We begin making inventory decisions based on inventory value and turns rather than our customer needs.

Or we begin telling ourselves:

  • It’s the new processes we’ve put in place and computer programs we’ve purchased that is the reason for the success.
  • Maybe we get so bold as to think it’s our Account Managers, Sales Managers, Branch Managers or the new CRM (Customer Relationship Management) software we use that makes us so successful. (I could go on but won’t.)

Certainly many of the points mentioned above are needed as we grow our business and contribute to our success. I believe 100% that our people are one of our most valuable assets and growth is needed in any vibrant, successful and lasting organization. But we must make sure we grow without diluting or forgetting the main ingredient that gives us our success and ability to grow.

Did you notice the common ingredient in all but one of the reasons above is the Customer?

Much like “water” is the main ingredient in the Kool-Aid, it is the Customer that is the main ingredient in any business.

Without Water there is no Kool-Aid!

Without Customers there is no Business!

I worry that we might forget, it is our Customers that makes us successful. Without them nothing else really matters.

If, when making our decisions, planning our growth and patting ourselves on the back about how good we are, we forget to consider our Customers and their wants and needs, we will begin to falter and soon fade.

As I said, I’m a worrier and I worry if not careful we can become victims of our own success. Hence, drinking to much of our own Kool-Aid and I don’t care much for Kool-Aid.

If you would like, please leave a comment below or you can email me at feedback@wewaonthenet.com.

You can also follow me on Twitter at www.twitter.com/WE_Ward where I tweet articles I come across each week that I think may be of interest. 

If you would like to have future posts automatically sent to you, please subscribe below or click on the RSS feed button in the upper right hand corner of my website and choose how you would like to receive this blog. You can unsubscribe at any time.

Thank you for taking the time to read this article.

Now let’s get out there and over-deliver!

What Does My Tax Story Have to do with Sales?

by | Apr 20, 2014 |

Taxes, Sales and Referral Value Tax Man

I remember years ago taking my shoebox full of papers and receipts and anything else I may have thought would be needed for tax purposes to Jim my Accountant or maybe better said Tax Preparer. Many times it was just days before the deadline. (I guess I have always been one to procrastinate.)

Jim was our accountant for many years. He almost seemed like family. Jim was always available for questions and advice. For many years, after tax season he and his family would go to our house in the mountains for a much needed rest. Jim was someone we knew, liked and trusted.

As we all know things change. Jim retired several years ago, sold his practice and referred me to another local accountant.

Here’s where the story begins:

The next tax season I got a form letter from the new accountant advising me of the changes (which I already knew) and letting me know I needed to make an appointment to meet with him to discuss my taxes. I did as requested.

A couple of weeks before the tax deadline (not days as I had done in the past) I called and made an appointment to meet with my new accountant to discuss and hand over my tax shoebox. When I arrived I quickly realized that he was very busy and I was just one of many. What a difference. The accountant had his processes and one of them seemed to require sitting in the waiting area for long periods of time.

Once I finally made it back to his office, I was greeted with stacks and stacks of paper mostly bound by large rubber bands. Thinking about it now I’m not quite sure I saw any shoeboxes like mine.

After a very brief introduction, he asked to see what I had brought. He barely knew my name and he was asking me to hand over my most personal information. Heck, I guess that’s why I was there but I remember that feeling uncomfortable as I did as requested. As I pushed my Tax Shoebox across his desk he gave me that look like “you got to be kidding”. You would have thought he had never seen the shoebox filing system I had in place at the time. (I now use a 8×11 envelope as my taxes have gotten much simpler.)

He quickly shuffled through my information, slapped a sticky note on the box, pulled out one of those large rubber bands, wrapped it around my tax box and told me he would give me a call when my tax return was ready.

That was it!

No questions asked, didn’t ask if I had any questions, just said he would call when the return was ready.

A few days before the 15th I got a call from his office letting me know my taxes were ready and to just drop by and pick them up.

When I dropped by his office my taxes along with my Shoebox were waiting for me at the receptionist desk. Again no questions asked, didn’t ask if I had any questions just a thank you along with the bill and out the door I went.

I realize I was not a Dream Client (probably an understatement) and I had no problem with the work he did (with the exception of the deduction for a home office he must have felt I needed and the IRS didn’t). But with that said, I never went back.

Since then I have had opportunities to refer customers and friends for accounting and tax services and never once have I included his name. In fact, when his name is mentioned my response has been “I was less than impressed with him.”

So what does an accountant and a tax shoebox have to do with sales?

I suspect he was ever bit as good of an accountant as Jim (maybe better) judging by the busyness in the office. He did what he said he would do and had my taxes done before the 15th and I had no problems with the price he charged.

However, I think the sales lesson is, even though he did what he felt was expected he didn’t meet my expectations. Never once did he consider any future value I might provide other than next year’s tax preparation fee.

I was looking for not only someone who could do my taxes correctly but someone I felt knew me, someone I liked and most importantly someone I could trust.

I know and I’m sure he knew that I was never going to be a high fee client. My shoebox method of filing certainly left him “less than impressed”.

But what he and I think many of us in sales and services fail to consider is the “referral value” of our customers.

Referral Value is the value a satisfied customer provides by referring their customers, friends, family and associates to our products or services.

I believe we “earn” referral value by exceeding our customers expectations and creating a trust that makes our customers eager to recommend us to others. We can’t create referral value by not meeting or just meeting expectations.

Though hard to put a hard dollar amount to how much a referral brings to ourselves and our company, it is something that we must consider.

How many times do we miss the opportunity to create a relationship that could provide “referral value” for years to come?

With a short term approach to sales and “make the sales numbers this month” attitude I wonder how much money we are leaving on the table by forgetting the value a satisfied customer can bring just by mentioning or referring us to others? Especially the right others!

Are we putting in the effort with our customers and people we meet to build relationships where comfortable asking for referrals?

Probably not!

We all know the damage a dissatisfied customer can do but are we overlooking the “referral value” of a customer that knows, likes and trusts us?

Probably so! 

If you would like, please leave a comment below or you can email me at feedback@wewaonthenet.com.

You can also follow me on Twitter at www.twitter.com/WE_Ward where I tweet articles I come across each week that I think may be of interest.

If you would like to have future posts automatically sent to you, please subscribe below or click on the RSS feed button in the upper right hand corner of my website and choose how you would like to receive this blog. You can unsubscribe at any time.

Thank you for taking the time to read this article.

Now let’s get out there and over-deliver!

Only Price Matters?

by | Apr 9, 2014 |

You’re telling me your competitors are selling at a lower price. So what!Create Value

You can’t get an order because your competitors don’t know how to make a profit. What’s new!

Your Customers only buy on price! Oh Really!

There’s not much you can do about your competitors but are you sure your customers only buy on price?

Is this your Price Only Customer?

I would guess they drive the most basic Ford Pickup truck. Nothing fancy for our price conscious customer.

They live in the cheapest house on the block in an older neighborhood. It may not have all the luxuries they wanted or needed but it was a bargain.

They buy their shoes (on sale) from Pay-Less Shoe Store and would never consider buying a shirt with one of those fancy emblems on the pocket.

Am I right?

Certainly not!

So, maybe your customers don’t always buy on price. Are you with me so far?

Don’t mistake your customers negotiation tactics as only buying on price.

Sure your customers like the lowest price they can get along with the most value they can obtain from you.

Can you blame them?

It is my contention (belief) that only when all things are perceived as equal is price (possibly) the only factor.

(You can see that I have a hard time even saying that price is the only factor.)

How can all things be perceived as equal if you as a Professional Salesperson are always bringing your and your company’s value into the sales equation?

Have you ever walked into a store to buy something simply on price and ended up buying a better more expensive product and was happy to do so?

I would think most people would answer yes. I certainly have.

For me this happened this weekend. It was the result of a good salesperson asking questions and finding out my real needs and wants. Then helping me find the correct product (a 70mm-200mm zoom lens) to meet my needs, thus providing the best value not necessarily lowest price.

It was the salesperson’s knowledge and salesmanship that provided value for me not to buy only on lowest price. Without that salesperson’s help I would not have got what I needed. I would have only gotten a low price with regrets later.

As professional salespeople we must strongly believe that we are providing a value to our customers even when not having the lowest price. For this value we need to be compensated.

If you can create more value than your competitors, shouldn’t that greater value result in a greater price?

S. Anthony Iannarino, creator and writer of “The Sales Blog” writes:

“The role of a professional salesperson is to create so much value for their client that they can confidently capture part of that value for their company and themselves.”  (How not to sell on Price: The Iannarino Principle)

Could it be the reason your customers don’t see the value you bring to the equation is “you don’t believe you bring value and deserve a higher price?”

You need to ask yourself:

  • Are you providing enough value to overcome only buying on lowest price?
  • More importantly, do your customers believe you are providing enough value to deserve a higher price?

I’m not saying price doesn’t matter, it does, but when you look closely it’s the value you bring and the perceived value of your products or services rather than lowest price that is the determining factor of what price your customers are willing to pay.

Look for more on this topic in the next couple of weeks.

If you would like, please leave a comment below or you can email me at feedback@wewaonthenet.com.

You can also follow me on Twitter at www.twitter.com/WE_Ward where I tweet articles I come across each week that I think may be of interest. 

If you would like to have future posts automatically sent to you, please subscribe below or click on the RSS feed button in the upper right hand corner of my website and choose how you would like to receive this blog. You can unsubscribe at any time.

Thank you for taking the time to read this article.

Now let’s get out there and over-deliver!

The Value of Trust in a Sales Relationship

by | Mar 30, 2014 |

In last week’s post I discussed the three keys to building a successful sales career. Those keys were Know, Like and Trust.Trust Stone

It is Trust and the Value it brings that I would like to discuss today by asking these two questions.

1.  Without trust, what value are you and your company bringing to the relationship? 

2.  Without value, what do you or your organization really have to offer over your competition?

I would say the answer to both of the questions is “Not Much.”

I Believe –

Trust is the cornerstone of any customer relationship. When your customers trust you, they will listen to your advise, be more forgiving when any misunderstandings arise and willing to purchase the products and services you have to sell.

I Also Know –

Honesty and integrity is the foundation of any trustful relationship.

Your customers must:

  • See you as a person of integrity and honesty
  • See your products or services as creating value
  • See your organization as one of integrity

Before you can begin to earn their trust.

From the book “Integrity Selling”: 

Trust is earned over time and it is defined in different ways by different people. It is influenced by many factors, such as: 

  • Being truthful and authentic, even when it is difficult
  • Allowing people to disagree without becoming defensive
  • Doing what you say you will do – being consistent
  • Listening with respect and attention 

These are skills and habits that must be learned, practiced and implemented in order to build any trusting relationships (sales or other).

Once trust is earned the sales process becomes much easier. Without trust the sales process is nearly impossible.

For a few minutes, put yourself in the shoes of your customers.

Think about what “you” want in a salesperson or supplier.

I know there are many things you can come up with but honesty, integrity, value and trust has to be at the top of any list when discussing “wants” in a sales relationship.

What value do your customers put in Trust? 

“It may be hard to put a dollar amount on the value trust brings into any relationship, especially a sales relationship but without trust the value will be darn close to zero.” – Wes

I guess the question is “What Value of Trust are you putting in your Sales Relationships?”

If you would like, please leave a comment below or you can email me at feedback@wewaonthenet.com.

You can also follow me on Twitter at www.twitter.com/WE_Ward where I tweet articles I come across each week that I think may be of interest.

If you would like to have future posts automatically sent to you, please subscribe below or click on the RSS feed button in the upper right hand corner of my website and choose how you would like to receive this blog. You can unsubscribe at any time.

Thank you for taking the time to read this article.

Now let’s get out there and over-deliver!

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