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March 8, 2010 Advice Squad

Attitude of gratitude | Thank your customers, if you want to keep them

By Tari Conley

“Advice Squad” is written by members of the Maine chapter of the Association for Consulting Expertise, a trade organization of 88 consultants around the state. This issue’s column is written by Tari Conley, owner of Appreciation Works consulting in Edgecomb.

 

Do you recall the last time you felt sincere appreciation from someone with whom you do business? A comment, note or gesture that left you with a warm feeling and stuck with you?

I was raised in a family-owned landscaping business with a retail shop selling plants, shrubs, gifts and cut flowers. That’s where I spent most of my free time. My mother, Jane, made it her mission to make everyone who entered her store feel valued.

One evening, I overheard her on the phone. That day, she had called a woman in the store by the wrong name. It bugged her all day, until she called the woman to apologize and say, “I felt it was wrong and should have known better. Of course I know your name!”

My mother lived by the Dale Carnegie principle: “Remember that a name is to that person the sweetest and most important sound in any language.” She knew that one of the ultimate forms of expressing appreciation is to show people we care enough to remember and use their names.

Patrons didn’t care what it cost or if they had to wait for their item to be ordered. They bought from Jane because of how she made them feel — like her most important customer, even those who came in not to buy, but to sell. Some items she bought led to colorful discussions between my parents at the dinner table. But Mom stood her ground because she knew that making people feel valued was most important of all.

And yes, she was blessed for her kind deeds and actions. It came back to her 10 times over.

When people aren’t acknowledged, they feel they don’t matter. How does that affect your business? In my family’s business, clients would have found an alternative at a better price. Neglected clients are unlikely to remain loyal, diminishing future purchase dollars and referrals. Our clients and customers are an investment and thanking them for choosing us is our obligation.

Wise investment

Back to the present, when so many people are struggling, when just breaking even is cause for some businesspeople to celebrate. We spend so much time fretting over our own income that we may not be thinking enough of others. When we take the focus off of ourselves, it not only makes a difference in our lives and to those who are important to us, but also ultimately to our bank account balances.

Another personal example: A relative of mine realized she wasn’t getting the service she felt she deserved from an insurance agent she’d had for more than 20 years. An incident arose when she attempted to review her policy after an appraisal of some possessions revealed increased value.

Not coincidentally, she realized the agent was never in touch. In fact, she didn’t even know whom to call at the office. Worse, in all the years she faithfully made her payments, there was no expression of gratitude, not even a single holiday card. She felt no appreciation, and therefore no allegiance and switched to another agency, which promptly sent a thank you card.

How about some statistics? In “Leading on the Edge of Chaos,” Emmett C. Murphy and Mark A. Murphy state:

  • Acquiring new customers can cost five times more than satisfying and retaining current customers.
  • A 2% increase in customer retention has the same effect on profits as cutting costs by 10%.
  • The average company loses 10% of its customers each year.
  • A 5% reduction in the customer defection rate can increase profits by 25% to 125%, depending on the industry.
  • The customer profitability rate tends to increase over the life of a retained customer.

How much is it worth to invest a little time to express appreciation? How long would it take to make one phone call a day to a client for no reason other than to say, “I’m calling to see how you’re doing, to let you know I appreciate your business, and is there anything I can do for you?” Five or 10 minutes?

There’s an old joke about flossing only the teeth you want to keep. You don’t need to show appreciation to all your clients, just those you want to keep.

 

Tari Conley can be reached at tari@appreciationworks.biz. Read more Advice Squad here.

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