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313Chapter 19: Fortifying Customer Relationships

Customer Type Customer Mindset Service Prescription

Satisfied Satisfied customers are Treat them like VIPs. If they
Customer vulnerable customers. They sense indifference, they’ll slip
find your service acceptable out the door. Demonstrate
but they aren’t overwhelmed. appreciation. Do them favors.
They will leave for a better Offer added value. Bend your
price, offer, convenience, or rules. Anticipate their needs.
recognition. Win their trust.

Loyal Loyal customers are safe Treat them like your most
Customer from defection so long as valuable assets. Follow the
their service expectations prescription for converting
are met, and their expectations “Satisfied Customers” but
are sky-high. double the dosage. Caution:
Don’t take them for granted.
Don’t burden them with your
problems or test their
patience while you court new
customers.

Using loyalty programs

Loyalty programs inspire customers to increase use of a company’s products
or services by rewarding repeat purchases with discounts or added-value
offers.

Playing the 80/20 customer odds

The 80/20 rule maintains that 20 percent of your The solution: Listen to discontented customers
consumers will account for 80 percent of your and do what you can to right the wrongs they
sales. Conversely, 80 percent of your problems cite. But don’t allow your energy to be con-
will come from 20 percent of your customers. sumed by those who may never be entirely
The concept actually has a name. It’s called happy with you or your business — or any other
Pareto’s Law, named after the economist who business, for that matter. Instead, tip the mar-
developed the theory, which is formally known keting odds in favor of your business by focus-
as the law of misdistribution. ing on your most content and profitable
customers. Plan your marketing program to
The problem: You want to acquire and cultivate cater to their wants and needs, telegraph their
customers in the trouble-free, highly profitable satisfactions to your market, and let them serve
20 percent group, but if you’re not careful, the like a magnet to attract more people just like
problematic 20 percent will consume your time them to your business.
instead.