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Small Business Boomers

Boomer Business Myth: Satisfied Customers Refer

by Jean on September 25th, 2008

My experience with reading and reporting on The Story of Edgar Sawtelle reminded me that the saying “Satisfied customers refer” is a myth. Here is why:
People who are satisfied don’t refer unless you ask them to or unless someone else asks:
“What’s a good book you’ve read lately?”
“What dentist would you recommend?”
“What is a good restaurant in town?”

Only EXCITED, THRILLED, customers refer. I read lots of books, both fiction and non-fiction. After a while, they all sound good, none much better than any of the others. Until I find one that I can get really excited about, like Edgar Sawtelle. Since those rare, wonderful books don’t come along often, I get excited. I want to tell everyone I know that this is a great book. I put it on my blog, send emails to my friends, give them as gifts… I REFER. I have probably told 20 people about this book in the few weeks I’ve reading it. And I’ll bet they each tell more people, too.

So you have a muffler shop, or beauty salon/barber shop, or a restaurant. How can you get people excited about mufflers, or food, or haircuts, to get them to refer? Some suggestions:

1. Brighten up your place of business. Paint. Put in plants. A fountain. (Yes, even a muffler shop can stand a little class.) If people wait, get rid of those old magazines and give them something really cool to read. For example, instead of People, give them Smithsonian. (OK, you don’t like that one - well, you think of something.) In other words, make your workplace something cool that they can get excited about and talk about to their friends. “You won’t believe, when I went to get a haircut, they had a tower of treats in the waiting room!” “Really? What a cool idea!” See what I mean?

2. Then kill them with kindness. Make sure everyone in your office/workplace is super nice. If you have employees who don’t know how to smile, get rid of them. I’m really serious about this: a smile makes a huge difference in how people perceive their service.

3. Do it right. Whatever you’re selling, whether it’s a service or a product, make sure it’s the best. No matter how fancy or cool your office, or how much your employees smile, if the customer’s muffler falls off or there is hair in the food, they won’t be excited and refer.

3. Make people feel like their time is valuable too. Don’t keep them waiting. Be efficient. I was once kept waiting an hour in the doctor’s office - in the examining room with my clothes off. I finally got up and left and never went back.

In short, make the customer experience spectacular, so people are excited. Do what you do, the best way you can. And smile while you do it. Have fun and people will respond in kind.

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POSTED IN: Boomer Businesses in Difficult Financial Times, Business Improvements, Customers, Marketing

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