You Lose If Your Customer Is Satisfied
Harry Beckwith was interviewed by "the authors of Knowledge Leadership, The Thomas Group. Here is a most interesting Q and A:
There is a great deal of similarity between Harry Beckwith's "continuous improvement" views and those in Raving Fans. The bottom line, however, is that regardless of terminology, you need to do whatever it takes so that your clients think of you first every time they have an issue in your wheelhouse. Its even better if they are so comfortable with you and confident in your advice that your client calls you to discuss every issue of importance, regardless of whether its in your wheelhouse. So, resist the temptation to set the "client happiness" meter low. Instead, challenge yourself to find ways to raise the bar higher each day.
Q. Sales nomenclature has also changed. First, "customer satisfaction," then "customer loyalty," and most recently what Ben McConnell and Jackie Huba characterize as "customer evangelism." Your own take on all this?So, client satisfaction is not enough. Client loyalty misses the point. Client evangelism is a marketer's term. What term, pray tell, is appropriate? Well, Harry doesn't offer one. I suggest returning to any oldie, but one that hasn't been bested--Raving Fans. The term was made popular in the early 1990s by Ken Blanchard, who wrote Raving Fans: A revolutionary approach to customer service.
A. Customer satisfaction isn't enough. In some cases, it barely matters. General Motors surveys showed a huge surge in customer satisfaction in the early to mid 1980s. Meanwhile, their sales reports showed a major decline.
Satisfaction isn't enough because no one is satisfied with merely be satisfied. And once a human being is satisfied, his or her expectations increase. They now want more, and need more, to be satisfied. This is why continuous quality improvement is necessary just to retain clients. People are uniquely restless.
As for loyalty, the term is misused. It's used most often in connection with frequent flyer programs, which are dubbed loyalty programs. But not more than five percent of travelers are loyal to any airline, and the majority are dissatisfied.
Relatively few companies have truly loyal customers. I've enjoyed the pleasure of working with one that has perhaps the most loyal customers: Harley-Davidson. The test of loyalty, ultimately, is how many people have your brand name tattooed on their biceps?
But that kind of passion is rare. You see it in well-established and iconic products like Fender Stratocasters, Tony Lama cowboy boots and some others. I'm loyal to Nike, but that's largely because I am loyal to its home, which is mine, too: Oregon. But true loyalty is rare. We are loyal to people, not to companies.
Evangelism? Evangelism was a term coined by people anxious to sell books. Businesses should worry about improving a lot before they worry about whether they're attracting religious fervor.
There is a great deal of similarity between Harry Beckwith's "continuous improvement" views and those in Raving Fans. The bottom line, however, is that regardless of terminology, you need to do whatever it takes so that your clients think of you first every time they have an issue in your wheelhouse. Its even better if they are so comfortable with you and confident in your advice that your client calls you to discuss every issue of importance, regardless of whether its in your wheelhouse. So, resist the temptation to set the "client happiness" meter low. Instead, challenge yourself to find ways to raise the bar higher each day.