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Build Business Around Your Best Customers by Judy Downing
Are some customers better than others? Of course they are. So how do you attract the customers you want and deflect or discourage those who would do better elsewhere?
First,[link widoczny dla zalogowanych], know your customers. Which ones are making your business successful? Which ones are wasting your time?
Second, adjust your business to create a great shopping experience for your best customers.
Third,[link widoczny dla zalogowanych], continually fine tune and monitor what you are doing.
An Example:
Celia has a boutique store that features beauty products and some jewelry. The store caters to women. A customer can try any of the beauty products at any time using sample product that Celia provides. If someone comes in with a friend, she can shop guilt-free while her friend relaxes in a small sitting area that is part of the store. The staff courteously answers questions and focuses on great customer service. Celia offers a variety of weekly specials designed to get people to visit her store.
The Problem:
Celia��s store was just breaking even when we talked. Her staff was working hard, but she needed more customers and wanted to know how to double her sales.
Our first step was to look at her customers. Celia discovered she had three kinds of customers. The best ones purchased Celia��s flagship skincare line, which they consider to be more of a necessity than a convenience or treat. Everyone in this group turned out to be a lady of fifty or older with a moderate income. They came into the store regularly to replenish their skincare supplies,[link widoczny dla zalogowanych], typically a fairly large transaction.
The second type of customer was mothers who came into the store accompanied by one or more small children. The children made a bee-line for the sitting area while the mother lingered over product samples. Her purchase, if one was made, was usually a single small item.
The third customer group consisted of shoppers who liked to argue about price. This customer typically selected a product and complained that the price was too high.
Celia��s staff wanted to spend their time with the first group of customers. The second and third group often wasted their time.
The Solution:
Once Celia looked closely at her customers, she was able to make some immediate changes.
First, she started a preferred customer program, which was offered to anyone who spent at least a certain amount in a single purchase. All of Celia��s best customers easily fit into this category. The program included a newsletter with special discounts and samples. Inside the store, the waiting area was upgraded slightly and was clearly designated as a preferred customer seating area.
Second, she decreased the number of sample products distributed throughout the store. Small signs were place in multiple locations telling customers to get product samples from the staff. At the same time, the staff was trained to help customers make a purchase. They also learned how to gently remind mothers to manage their unruly children.
Third, the staff was trained in ways to handle people who continually complained about price. If someone wanted a discount based on expired special pricing, she was politely told that she could wait until the product was advertised as a special at a future date. Alternatively, she could fill out a fairly extensive questionnaire and check back for her discount after it had been reviewed by management.
Outcome:
Celia��s staff was a bit concerned about how some of the customers would react to the changes. The simple training they received made them more confident. A few customers, all from the less desirable groups,[link widoczny dla zalogowanych], were annoyed at first. Some left and didn��t come back. Some became better customers.
Celia��s best customers all stayed. Many made positive comments about the changes.
Celia and her staff started enjoying their jobs more. They discovered they had more time to spend thinking about attracting and keeping their best customers. They asked for customer feedback and tried new things while keeping everything that worked well. Within a short time, they were well on their way to Celia��s goal of doubling sales.
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