How much is a customer worth?
Most business owners do not know, and sadly, many do not
care. In the past several years, business owners are learning how important
that it is to care as the number of customers are dwindling due to all kinds of
factors which I won’t cover here.
If you are a business owner who does care, here’s how to
quickly determine the dollar value. (Human value is infinite). An example I
remember from years ago was that of a salesperson in a department store who
angered a customer with a small order, I’ll say, $2.57. After the supervisor
chastised the salesperson for his actions, the salesperson said something like,
“It was only a $2.57 purchase”, indicating that this was only a $2.57 customer.
The supervisor presented the facts by going over the purchases made in visits
of that year only was in the hundreds. So this was much more than a $2.57 cent
customer. And, if keeping the customer happy and buying for 5 to 10 years, this
customer is worth thousands.
What is the law of
250?
The law of 250 is simply this; everyone knows at least 250
people by first name. This is a rule and concept that merits your research and
keep in mind. This was introduced to me years ago by Joe Girard. He learned it
from a pastor and a funeral director when he asked the pastor how do you know
how many wedding programs to have and the funeral director, how many programs
to have for the service. The answer from the pastor was, 500; the groom knows
250 and the bride knows 250. The funeral director’s answer was 250; everyone
knows 250 people.
So what does that have to do with customer service and
specifically the Secret Patron service?
If you have a customer who has a good experience, know 250
to 500 people and may tell a few (unless you give them a reason to tell more).
If they have a negative experience they will most certainly tell 250 to 500
people.
Have you received this
gift from your customer lately?
Next, I’ll share a real story which I experienced most
recently. Since I know everything that I’ve shared above, I will not be one of
those who will share it with up to 500 people. (And by the way, please and please
again, treat business people with special care; they know far more people and
they have a sound horn).
When a customer has a poor experience and brings it to your
attention, what is your reaction? And are you prepared to handle it in a
professional and profitable manner; for both sides?
Many business owners chalk this up to being a complaint and
do little with the information. What you’ve really been given is a “gift” and a
chance to make this right not only at this time, but in the future with other
customers, thereby, very possibly saving your entire business.
Here’s a real story.
It started with a well anticipated meal with my son to
celebrate his birthday at a long established restaurant that had changed hands
recently and I hadn’t eaten there since his birthday last year. The place is
known for its ribs and I’ll just share that it is in Wisconsin but I’ll not
share the name of the business (to like in the old Dragnet show; protect the
innocent).
We arrived and after seated and asked what we’d like to
drink, our server offered samples since my son wasn’t quite sure. I had my
regular in mind and after tasting the sample we settled on our beer choice and
I stayed with my first.
The server later asked if we were ready to order and when I
stated that we would order appetizers, she seemed almost surprised but helpful
in taking our order. The appetizer came and it was very good.
Later we ordered. My son decided on a combo platter which
included steak and shrimp and I (probably should have ordered ribs) ordered
prime rib, with baked potato, plus mushrooms and onions for my prime rib. She specifically asked if I wanted them on my prime rib or on the side and I stated to please have
it on the side. Both of our orders came with a choice of soup and when that was
delivered, it was very good; just like the appetizer; so far, so delicious.
The place was busy and since we sat near the swinging
kitchen doors, the time passed easily as I witnessed many occasions of near collisions when rushing servers would open the door and pass by a patron getting up out of their seat.
Our meals came in due time; my son received his complete combo and I only my
prime rib. My very first impression was that it was smaller than I expected but
it looked beautifully prepared. I was told that the rest of my meal would be
forthcoming. My son sliced into his steak to find that it was prepared closer
to being well than the medium well that he ordered, which can certainly be forgiven. For me,
immediately when my prime rib was sat before me, I smelled something like, I hate to say it, “rancid”? I held my plate to my nose but couldn’t really
smell anything but sampled a bite. It seemed as if it had been prepared
with blue cheese as it had a pungent taste. I’ve never experienced prime rib
served that way and thought perhaps it was the seasoning or was "aged"? The au juice seemed fine, but the taste was just not right. I had my son
sample it and he stated that he doesn’t eat prime rib often but admitted that
it did taste different. I explained to him that I like blue cheese but that I
would not be happy if later during the night I vomited up something that cost
me $32. I called the server over (I still had not received my baked potato and the additional onions and mushrooms options).
I explained my concern and at that time I was still
thinking that maybe I could eat what I thought was prime rib infused with
essence of blue cheese. I then asked for the rest of my meal. I could see that she realized her forgetfullness and said she would bring it. She soon returned with a baked
potato, but no mushrooms and onions. When I asked where they were she stated, “Oh,
I’ll take them off your bill”. I asked why and she stated, “Oh, unless you want
them, I can let the cook know”. I didn’t know if this was due to her negligence
of that of the person who prepared this variation on a theme of prime rib and
blue cheese.
I declined the condiments and started to try the baked
potato. It was far too well done. My disappointment had snowballed at this point and I wasn’t
mad, but I was displeased to the point of this incident almost ruining my
evening. Certainly, my hopes for an awesome meal (as I always remembered
before) were crushed.
I again spoke with the server, who seemed to empathize and
quickly took my plates away when I told her that the baked potato was overly
done and I could not eat the prime rib so I was not going to pay for it. There
was no argument. But to me who doesn't like to waste food and one who has never complained about a prime rib in my entire life, felt badly.
I discussed the matter with my son who had been eating all
this time and he now had completely finished. We were there for several minutes before she returned and asked me if I would like “something else”. I was thinking that she meant a
replacement but looking at my son and his empty plate, I thought it best to
leave soon. She later asked if we wanted anything of dessert and with our "polite" refusal, she placed the check on the table.
I took the check to the counter near the door; she came and
took my card. She had removed the cost of my meal from the amount and I still tipped her 20%.
She gave me a "10% off my meal card" when returning my credit card stating that I
could use this on my next visit.
But, I’m not sure if there will be a next visit.
The above situation is true to the very best of my memory;
which is sometimes short, however this occurred just last night, prior to my
writing this. Even with the removal of my meal cost and a 10% discount on a
future visit, in my mind it is not enough for me to try another attempt and
possibly sacrifice another special occasion. Perhaps if the chef or owner had
come out immediately, apologized and offered me a different entre and better
still at no charge for my inconvenience I would not only return, I would brag
about the restaurant.
Here’s how you can
use Secret Patron.
I’ve had the privilege of sharing these principles to small
and large businesses of all types over the years with what may be considered
miraculous results. It’s really just a matter of becoming aware of things and
tweaking them to see happy, and raving happy customers.
I’ve taught customer service courses at an adult university
and elsewhere.
You don’t have to continue to lose customers. With the
Secret Patron service you’ll know what makes your customer happy and if you
miss the mark sometimes, you’ll know how to not only fix things, but have them
praising you, your staff and your business offline or online.
Please use the contact form to connect and request a free consult, or click to read more details.
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