I drove into the first and was greeted immediately on the drive by a service advisor who politely and professionally asked how he could help me. After telling him about my car problem he suggested I wait inside and he would have a technician look at it as quickly as possible. When I went into the service lounge I was surprised to find at least ten other customers waiting and thought I was in for a long wait.

A couple of other business men were sitting in chairs working on laptops. A large flat screen television on the wall broadcasted the morning news and a group of a half-dozen customers were listening to a gentleman sharing a story about off-road trucking. He was dressed in casual business attire while wearing a sport coat and I noticed he was holding a coffee pot. He stopped his story and offered to fill someone’s cup then asked me if he could pour me a cup. I thought this is was an extremely personable customer being a nice guy while we all waited. I listened to the discussion for about five minutes before my service advisor approached me and offered to provide shuttle service if I was pressed for time to get to work. He told me another shuttle would be leaving in a half-hour and the tech should have had an opportunity to look at my car by then.

So far my customer experience had been great. It was obvious the company had a process in place to provide great customer service and a pleasant wait experience for their customers.

My second experience was entirely different and memorable as well. While out of town on business a colleague and I drove into the service department of a dealership and were not greeted by anyone. We left our car on the service drive and went inside. A woman behind the counter was sitting in a chair reading her newspaper while smoking a cigarette. She looked up and said, “What?” That was her greeting. I asked for a service advisor and she pointed toward a door. When I opened it I saw several techs standing around and not one single vehicle being worked on. Obviously, many other potential customers made the same decision I made. A few minutes later we were driving to another dealership.

When thinking about customer service I always think of these two contrasting experiences. My experience with the second is one of my worst initial interactions with a business and their approach to customer service had obviously impacted their revenue.

So, how did my visit to the first dealership end? My service advisor was back to me within the half-hour he promised and the repair took less than an hour. I had a couple cups of coffee, met a person who lived near me and was told about his great experiences with the dealership, and did accept a breakfast roll from the guy telling the off-road trucking story. Turned out he was the dealership’s Service Manager.

I’ve been a customer of Sprint for more than a decade with multiple phone lines for my family. After evaluating several monthly bills I noticed the overall shared usage had changed and that all but one of the lines no longer was under a termination penalty. Rather than talk with a Sprint representative over the phone I decided to stop by the store near my home and review the bill in person to determine a way to lower my monthly cost. I also wanted to evaluate mobile Internet options for two business laptops.

When I got to the store and began to explain what I wanted to review the store representative told me he couldn’t make any changes. I asked for the manager who came over and introduced himself. Then, after reviewing my monthly statement looked up and said, “I can’t make any changes.”  What transpired over the next ten minutes shocked me. Without going into detail, the most repeated words from the store manager were, “I can’t.” He had no interest in lowering my bill or helping in any way if I wasn’t going to spend more money. I finally told him I have five family lines with Sprint and two lines for Internet air cards and all except one have no termination fee. My business cellular service is with AT&T who I am sure would like me to add personal lines. When I asked, “Why should I continue doing business with Sprint when you have no interest in helping me fit plans to my actual need?”  He said, “I can’t tell you what to do.”  My response was to say I’ve heard “I can’t” for the last time and left the store. I drove away with every intention of transferring all my business from Sprint.

The next day while driving to the AT&T store I passed a Sprint store and decided to stop. My reason for planning to transfer seven lines from Sprint was my experience with a store manager. When I walked into the second Sprint store I was fortunate to be greeted by Najma. When I explained that I wanted to look at options for my plan she was pleasant and offered to pull up my account information. I handed her my previous month’s bill and when she confirmed information on her monitor screen she looked up and said, “My first reaction is you are spending too much money.” 

She spent fifteen minutes going over options and I never heard the words “I can’t” one time. Her recommendation resulted in reducing the monthly charges by almost twenty-five percent. I told Najma I would like to meet the store manager to express what great service I had received and that she had saved me as a Sprint customer. She said thanks and that she was the store manager.

I sent a letter to the Sprint district office sharing my experience with two store managers. I explained that although I’m spending less money with Sprint I continue to be a Sprint customer because of how a frontline employee did a great job.

In this week’s issue of  CSW’s One Idea newsletter  we provide ways to “Improve Communication Etiquette.”  One of the store managers was exceptional.

I stopped by Najma’s store a couple of weeks later to check out their Android phones and was greeted with a smile. She thanked me for my letter and told me she had received a bonus from her boss. And yes, I’m now carrying one of Sprint’s Android cell phones thanks to an “I can” store manager.

There are four key elements to developing a loyal customer:

• Create a great customer experience.
• Go beyond what the customer expected.
• Build an emotional connection.
• Prove you are committed to loyalty.

Russ has cut my hair for the past twenty years. Does he cut hair better than his competition? I don’t know. I’m satisfied with my haircut. Is he the least expensive barber in town? I could find a cheaper haircut but it doesn’ matter. Twenty years ago, he gave me a satisfactory haircut and a reason to return. Today he cuts hair or many of my friends, their children and their friends. All because of my referrals and my friend’s recommendation and other’s who continue to be referrals. Russ doesn’t advertise and clients book him weeks in advance. The time I spend in his barber chair means more than a haircut, and I wouldn’t think of making an appointment elsewhere. I am a loyal customer and have been for twenty years.

My barber made more profit on my business this past year than the last automobile dealership where I purchased a truck. After I signed the paperwork, my salesperson introduced me to the service manager who explained the importance of regular service. The dealer, salesperson and service manager have chosen not to contact me since I drove off the lot. My buying experience was satisfactory but the dealership failed to give me a reason to return. And I don’t plan to go back.

It’s as if there is an attitude that someone satisfied doing business on time will just come back the next time. If I’m a satisfied customer making a purchase, companies better do something to make me want to come back.

Russ understands a key business principle. Loyal customers generate higher earnings. In fact, recently he and I did a tally of the different customers he has currently as a result of our relationship over the past twenty years. Conservatively, Russ makes well over $10,000 per year just from the referrals I have sent him. And, I’m one of many who recommend Russ to their friends. That is why he is often booked up six weeks in advance.

So, what exactly does Russ do to develop loyal customers?

1.     He creates a great customer experience.  When I go get my hair cut I spend time with a friend. I catch up on what mutual friends are doing. Russ plays gold with a friend I don’t see often and his two sons, who are good friends of my two sons. There is one early referral I made and two more. Russ also gives a great haircut and he charges a fair price.

2.     He goes beyond what the customer expects.  Russ knows I like frozen Snickers, so there are always a couple i the freezer section of his mini frig, specifically for me.

3.     Russ builds an emotional connection with his customers. He made an emotional connection with me by showing interest in the sports activities of my two sons the first time I sat in his barber chair. Russ followed both their athletic careers and today we often talk about the sports activities of his son Hunter, who is much younger than my sons. He showed genuine interest in my family.

4.     He proves he is committed to loyalty. Russ does the little things that show he cares about his customers. Tell him you need to get in touch with me and he doesn’t look up my phone number. He would tell you off the top of his head from memory. Because of my schedule I’m not able to set an appointment a week or more in advance. I’ll call him and tell him I’m in town a specific day and he always says, “Scott, I can work you in at 11:30 or I’ve got someone doing a hair color at 2:00 and I can cut yours during the set time.” He works around my schedule. Twice in the last ten years he has raised his prices that I missed. He keeps a small framed menu of services nd the price of an adult haircut is right there in plain sight. I often have a check with he amount and tip already made out when I walk in and just lay it on the mini frig when I grab a frozen Snicker. I’ll find out I’ve been underpaying him three months later when I happen to glance at the sign. He has never brought it to my attention and when I try to pay him the difference he always refuses.

Wow…does he understand how to lock in customer loyalty! He genuinely loves what he does and wants all his customers to know he is a friend and he cares for them. For twenty years no other person has cut my hair.

In his week’s issue of CSW’s One Idea newsletter we asked the question, “Where are you a loyal customer?”  Take a look at the thought exercise presented there. It might give you insight as to what your business can do to improve customer retention.