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Jeffrey Gitomer Customer Satisfaction is Worthless, Customer Loyalty is Priceless Buy this title or join our Management Literature Club and have a chance to GET IT FREE! |
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Business Nugget by Robert Morris Jeffrey Gitomer is the author of The Sales Bible (published by William Morrow) and more recently, Customer Satisfaction is Worthless, Customer Loyalty is Priceless (published by Bard). What sets Gitomer apart from many other authors is his relentless focus on what happens in the real world. He seems almost allergic to theory, hypothesis, and supposition. His perspectives and suggestions obviously reflect what he has learned from those who fill the workshops he conducts. He dedicates The Sales Bible and issues a “special thank you” to every buyer and prospect who told him “no.” In The Discipline of Market Leaders, co-authors Treacy & Wiersema suggest that small-to-midsize companies usually cannot compete with major corporations in terms of operational excellence or product leadership. In fact, it would be foolish to try. What then? Treacy & Wiersema explain what they call “The Discipline of Customer Intimacy” and it seems safe to assume that Gitomer wholeheartedly agrees with them. Intimacy in any human relationship is difficult to achieve and even more difficult to sustain. Gitomer’s “Selling Tips” are: 1. I give value first.
Helpful as these “tips” are to sales initiatives, they are even more helpful to achieving and then sustaining customer intimacy. When Gitomer refers to creating “memorable experiences”, he is suggesting a highly disciplined process by which to obtain and then enrich customer loyalty. One of the most basic of business principles is that you usually don’t make much money on orders but on re-orders. The cost of gaining a new customer is at least 5-7 times the cost of keeping a current customer...with “cost” including hours as well as dollars. Also, high customer turnover virtually eliminates what should be major lead referral sources. A customer’s “satisfaction” with the most recent purchase from you may mean little (if anything) when the next purchase draws near. True, having already done business with you, that customer may be more inclined to give you the proverbial “shot” at it...including you among other sellers to consider. According to Gitomer, your objective should be customer “loyalty” which precludes any other options. That is to say, each customer should become so satisfied with all elements of the association with you that buying (what you sell) from someone else is unthinkable. You’ll know you have achieved “intimacy” with your customers when they think of you as a concierge: Trusting your judgment and your contacts to help them meet needs and to solve problems which may be wholly unrelated to what you sell. Obviously, they do not expect you to answer every question but they can depend on you to help them find the best answer. For example: “My daughter will graduate from college next June and wants to get into public relations. Where can she get some good advice?” “I’m not happy with my accountant. Can you suggest some firms for me to contact?” “Know a good plumber?” When customers ask questions such as these, they are paying you a great compliment while also indicating that all the effort you put into nourishing your relationships with them has earned their respect and trust. According to Gitomer, “customer loyalty” depends upon “customer satisfaction”
with each purchase. Unlike a concierge, you are selling something, be it
printed circuits, a bottle of cologne, or residential foundation repair.
Customers will respect and trust you only if they respect and trust what
you sell.
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