Service is Your Best Marketing Strategy: 5 Quick Tips

Service Is Your Best Marketing
Strategy

Experts agree that loyalty is the most
effective and highest return marketing
Retailers with loyalty programs, on average,
are 88% more profitable than competitors
who do not.
DELOITTE RESEARCH SURVEY
Customer loyalty is the single most important driver
of growth and profitability.
HARVARD BUSINESS REVIEW
It is 6 to 7 times more to acquire a new
customer than to retain an existing one.
BAIN & COMPANY

Loyalty marketing is more relevant
today than it has ever been
• Your biggest asset is your existing customer base and foot
traffic
• Data shows that loyalty programs can increase customer
visits by 20 percent or more
• With social media, each of your customers can now share
your brand with hundreds of others
• Technology can now automate most of your loyalty
marketing needs
• It’s marketing that’s fun and makes sense!

Loyalty marketing ROI is traditionally driven by
increasing visits, spend, and response to promotions
Visit go.fivestars.com/loyaltyguide to learn more
Framework for Calculating Loyalty Return
Visit
More
Frequently
Spend More
Per Visit
Participate
in
Promotions
Reward
Costs
Program
Costs
Net
Revenue
Increase
Customer Behavior Loyalty Marketing Costs

• In 2011, 7 in 10 Americans said they were willing to spend
more with companies they believe provide excellent
customer service
• Dissatisfaction with customer service is the #1 reason
customers won’t return to a business
$
$ $ $
3 out of 4
customers have
spent more
with a company
because of
positive
experiences
How Great Service Drives Loyalty
SOURCE: AMERICAN EXPRESS SURVEY

Tip #1: Show that you really care.
• Connect with your customers on a human, emotional
level
• Share stories and try to relate to the customer
• Look for ways to delight the customer, in the spur of
the moment
• Use customers’ names when you interact with them
• Pay attention and remember the small things, like a
child’s favorite candy or an upcoming anniversary
5 Practical Service Tips

Real Life Example: Zappos
It’s more important that
we make an emotional
connection with the
customer, rather than just
quickly getting them off
the phone.
DEREK CARDER, CUSTOMER LOYALTY OPERATIONS
MANAGER
”
“
Percent of Zappos sales comes
from return customers, who on
average, spend 2.5 times more
than first timers.
SOURCE: CONSUMERIST & DAILY DEAL MEDIA
75%
FROM JAY, A ZAPPOS CUSTOMER AND
BEST MAN, WHO ALMOST ARRIVED TO THE
WEDDING WITH NO SHOES:
I spoke with Lydia Burrola who
listened carefully to my situation and
she offered to overnight a
replacement pair of shoes. It was at
this point I felt I had to tell her that
this level of service was both
outstanding, and completely
unexpected. On top of completely
taking care of my problem and
adding the “VIP” bonus, she then
issued a complete refund. Free
shoes. Unbelievable. Zappos has
earned a customer for life.
“
”

Tip #2: Get customer feedback and act on it. Now!
• Find ways to get your customers’ feedback, the good
and the bad: It shows that you really care about their
experience
• Ask if there is anything else you or your employees can
be doing to give them the best you can
• Always shoot to go above and beyond what is
expected when responding to feedback
• Act on feedback requests
as soon as you can
DO YOU
HAVE TIME
TODAY?

Real Life Example: Trader Joe’s
SOURCE: FAST COMPANY & JABUSFIELD.COM
Marynne Aaronson was pleasantly surprised
at how quickly her Reno, Nevada, store
started carrying a soy ice-cream cookie she'd
requested after trying it at a Southern
California location.
Store Captains spend most of their day on
the retail floor and have a lot of autonomy to
set up their stores to meet local needs.
Employees can open any product a customer
wants to taste and are encouraged both to
recommend products they like and to be
honest about items they don't. All store
employees can email buyers directly with
ideas or feedback from customers.
Customer feedback doesn't have to come
from sophisticated research. At Trader
Joe's, it's all about listening to people.
And my heart was
glad: Glad to be at
Trader Joe’s; glad that
these employees were
awesome people. My
kid will always
remember Trader
Joe’s as the place he
danced.
FROM J.A. BUSFIELD, ABOUT HER
EXPERIENCE WHEN TRADER JOE’S
EMPLOYEES TOOK HER COMMENTS TO
HEART AND HAD AN IMPROMPTU
DANCE PARTY IN THE GROCERY AISLE
FOR HER ANTSY SON:
”
“

When customers share
their story, they’re not just
sharing pain points.
They’re actually teaching
you how to make your
product, service, and
business better. Your
customer service
organization should be
designed to efficiently
communicate those issues.
KRISTIN SMABY, “BEING HUMAN IS GOOD BUSINESS” ”
“
SOURCE: HELP SCOUT

Tip #3: Build long-term relationships.
• Like a dating relationship, woo your customer after
they have already purchased from you
• Reward them for being loyal customers over time
• Surprise them on special events, like birthdays or
holidays
• Go the extra step and follow up after their purchase
and make sure everything is going well

Real Life Example: Panera Bread
Panera Bread launched the
MyPanera customer loyalty
program in 2010. Customers in this
program enjoy free items based on
past purchases, invitations to
events at their restaurants, and
special treats on their birthday.
Panera’s loyalty program has
helped them keep in contact with
their customers and understand
their buying habits.
This has helped Panera Bread tailor
its offerings to what the customers
like, so customers will keep coming
back again and again.
SOURCE: ST.LOUIS TODAY & ANALYST DISTRICT
MyPanera is focused on
fostering unique
relationships with
customers through deeply
understanding how each
guest enjoys and interacts
with Panera today, and new
ways they might like to in
the future.
BILL MORETON, PANERA BREAD CHIEF EXECUTIVE
OFFICER
”
“

Tip #4: Hire servant leaders.
• Servant leaders are people who lead by serving all of
their peers regardless of their position or lack there-of
• A servant leader is a servant first, and these type of
people will continually put your customers’ needs
above their own
SOURCE: MCKINSEY
• Look to hire people with
these types of
characteristics: humility,
warmth, empathy,
conscientiousness, and
optimism! Percent of buying experiences are
based on how the customer feels
they are being treated.
70%

Real Life Example: Chick-Fil-A
The main idea of ‘servant
leadership’ is that leaders
serve the staff. Managers treat
their employees how they
want those employees, in turn,
to treat customers. If we have
to keep telling people what to
do, it means we're not
modeling the behavior
ourselves. If we're living it
every day, we don't need to
talk about it.
DAN CATHY, CHICK-FIL-A CHIEF OPERATING OFFICER
”
“
You can’t be too thorough
about hiring.
For Chick-fil-A, the process of
selecting new franchisees can
be painstaking and very lengthy
(up to a year). Applicants work
in a restaurant and endure
countless interviews; often, their
spouses and parents get
interviewed as well. They want
to be sure that new operators
share Chick-fil-A's corporate
values.
Chick-fil-A looks for people
who exhibit humility, passion
for service, compassion, and
genuineness.
SOURCE: FAST COMPANY

Tip #5: Mistakes happen. Make it right.
• Own up to your mistakes. Genuinely apologize and make
the situation right based on the customer’s individual
needs.
• Allow your customers to vent about issues and don’t
interrupt until they have said everything they want to say.
Never argue with a customer, even if they may be wrong.
• It takes 12 positive service experiences to make up for 1
negative experience.
• A third of consumers say they
experience a rude customer
service at least once a month...
58%
tell their friends
about it!
...and

Real Life Example: Starbucks
As described in Charles
Duhigg’s The Power of
Habit, Starbucks employees
undergo rigorous training in
how to recognize and
respond to customer
needs. They learn about
what the company calls the
“Latte Method” of
responding to unpleasant
situations.
Baristas learn to recognize
when their customers are
exhibiting negative
emotions and, more
importantly, how to address
these emotions in positive
ways.
The Starbucks LATTE Method:
We Listen to the customer,
Acknowledge their complaint,
Take action by solving the
problem,
Thank them, and then
Explain why the problem
occurred
SOURCE: FORBES ONLINE
”
“

The single most important
thing is to make people
happy. If you are making
people happy, as a side
effect, they will be happy
to open up their wallets
and pay you.
DEREK SIVERS, CD BABY ”
“
SOURCE: HELP SCOUT

Need a customer service boost?
• Want an easier way to remember all of your
customers names?
• Wish you had more specific details about their visits
to your small business?
• Want to delight them on their birthday or other
holidays?
Cue shameless plug!
FiveStars Loyalty Automation Platform can help!

FiveStars is pioneering loyalty automation that
includes service marketing tools
FIVESTARS LOYALTY AUTOMATION PLATFORM
We take care of everything
Point-of-Sale
Relationship
Manager
FiveStars
Card
Customer
Engagement
Toolkit
• Customer info right on
the POS
• Never slow down the line
• Built in fraud control
• Simple technology
everyone can use
• Impossible to lose
• Over 700,000 cardholders
• Simple segmentation
• Text or email campaigns
• Social media integration
Want a free loyalty consultation from FiveStars?
Visit go.fivestars.com/demorequest

Service is Your Best Marketing Strategy: 5 Quick Tips

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Service is Your Best Marketing Strategy: 5 Quick Tips