Creating customers for life
Referrals are a great way to build a business, but are you doing enough? writes
The most successful companies are those that have a great base of repeat customers and get referrals of new customers from existing ones.
Obvious right? But I find many companies should be putting a bigger focus on this ‘‘Business 101’’. Recently, my friend’s son had a really bad haircut, and the story of what happened illustrated ‘what not to do’ if you want to have customers for life.
He had just started at a new school, and for day two went and got a haircut.
His usual barber was unavailable, so he found another barber down the road. He wanted a one, two, fade - whatever that is? But when my friend saw the haircut her son had got from the barber, her heart sunk, as it was a terribly bad job. They began an SOS mission to salvage his hairstyle and reputation at school.
Using Google, they found another barber with great reviews, and rushed to get there, arriving at 7:15pm because online it said they were open until 8pm. The barber was just finishing with another boy and had one other person in the line.
My friend politely asked if the barber could help her son but alas, he said he was unable to help as he closed at 8pm and he still had to sweep up after the next haircut.
My friend desperately pleaded with him, explaining she did not want her son to be ridiculed. She said she would pay the business double, sweep the floor and help him clean in return for his help.
He still said no and they left sad and defeated. Luckily, they managed to find a kind hairdresser doing a late night at the mall, who was able to do a decent recovery job.
So what are the business morals of this story?
Firstly, the barber who did the bad haircut should have declined to do it if they didn’t know how to. Know your limits and don’t do mediocre work.
The best way to get strong word of mouth and repeat business is to focus on the jobs you are really skilled at. Many businesses I see that are not blossoming are often not focused on their niche.
Learn to say no to the jobs where you are not so great.
Secondly, I believe the barber who turned my friend and her son away was following a system too rigidly. Remember that all your customers are people, and the best sort of company treats customers with humanity, especially in their hour of need.
Offering help would have created a customer - or four - for life (she has two other sons and a husband).
How good are you at creating customers for life and do you truly know how you are performing on repeat and referral business?
Zac de Silva is a business coach who owns www.businesschanging.com and is co-founder of the Nurture Change Business Retreat in Fiji. Check out www.accme.co for better business tips.