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True Believers
Passionate customers can transform your company. Here's
how to make them your secret weapon
http://www.businessweek.com/magazine/content/06_52/b4015401.htm
CEOs have been talking about customer loyalty for years, but
entrepreneurs such as Selkoe know that making people truly loyal
to your company—to make them really, really like you—takes a lot
more than a frequent buyer program. It means nothing less than
getting people so jazzed about your brand that they become
engaged contributors to your company's sales, marketing, and
innovation efforts, and ultimately its success. How does that
happen? By knocking down the walls between "you" and "them" and
creating a larger, looser community that is inviting to both your
customers and your employees.
When looking for advocates, don't make the mistake of writing off
customers who have complaints about your company. That group,
which includes people who Kellogg's Scheiffer dubs "hostages," may
be keeping their business with you only because they have few
good alternatives, and will bolt if given the chance. Addressing their
concerns may well convert them into your most fanatical followers.
Says the AMA's Reilly: "If you have defects in a product, [the way in
which you fix them] can create that emotional attachment that can
move someone from being a habitual buyer to someone who is very
loyal and will tell people at their country club about you." In a study
of customers who had complaints with their banks, published in the
Fall, 2002, Journal of Marketing, James Maxham III, an associate
professor at the University of Virginia's McIntire School of
Commerce, and Richard Netemeyer, a professor at the same school,
found that if a single snafu was appropriately addressed, customers
rated the firm higher on satisfaction, word-of-mouth
recommendations, and repurchase intent.
CREATING COMMUNITY
It's a lot less tangible than how often someone buys from you, but
customers who see themselves mirrored in your brand are more
likely to be loyal. You can develop that reflection by building a
community in which customers can interact with your employees as
well as their peers. "By bringing customers together you give them
the chance to talk about their experience with your product or
brand," says McConnell. "And if you invite [prospective customers],
then existing customers often become the salespeople."
INTERNAL EVANGELISTS
Whenever possible, says McConnell, companies should create a post
such as Weber's that is devoted to establishing a vibrant
community. Be warned, however, that giving a salesperson the task
may backfire. While salespeople have a lot of contact with
customers, McConnell notes that they are concerned primarily with
selling, not listening and advocating on behalf of customers.
Visiting clients and seeing firsthand how they use your products can
also trigger innovation. Kellogg's Schieffer suggests sending a team
of marketing, product development, and technology executives on
client visits so that any problems or suggestions that come up can
be addressed quickly. TechSmith, like most small companies,
doesn't have a huge budget for travel, so Weber tries to sneak in
visits to nearby customers whenever she goes to another city for
conferences or other meetings. At one such visit last year, she
observed that after a customer set up Camtasia Studio, he hit the
"finish" button but didn't realize he had to hit "record" to start
capturing images. Weber relayed her observation to the product
team, which made the program's steps more clear.
Once a month or so, Tabula's Etuk and his managers comb through
a database of educators' suggestions and concerns about their
products. Good ideas are quickly incorporated into the products,
such as creating a feature that tells teachers how a student has
performed. Etuk understands just how valuable the community he is
building will be and intends to keep them involved. Says Etuk: "It's
a constant conversation."