HOW TO REINVENT YOUR BUSINESS RELATIONSHIPS THROUGH

PARTNERSHIPS

GOOD OLD DAYS, NEW DAYSTHE ONLY THINGS THAT MATTERS IN

BUSINESS IS RELATIONSHIPS *IT’S JUST MORE COMPLICATED

10 THINGS YOU CAN DO…

1. FOCUS ON LOYALTY, NOT REPEAT BUSINESS

DOES LOYALTY MATTER?

•  For every 1% improvement in your customer retention rate, operating income

will improve by 20%. • A 5%  reduction in customer defections can

lead to an 85% boost in profits.

• Customer loyalty generates operating margins of 13%, while laggards had margins

of just 2%. 

REPEAT BUSINESS IS ACCOMPLISHED BY DROPPING PRICES

• Dropping prices brings in cheap customers, why would anyone want cheap customers?

THERE WAS A LITTLE ITALIAN WINE MAKER WHO DIDN’T HAVE AN

ADVERTISING BUDGETHIS NAME WAS TONY

HE ONLY KNEW HOW TO DO ONE THING, THAT WAS “BE NICE” TO HIS CUSTOMERS AND HIS GRAPES!

HE STAYED IN TOUCH WITH HIS CUSTOMERS

• In order to build loyalty you must keep in touch.

• Video or direct mail• www. sendoutcards.com/lcalandrino

HE TOOK PHOTOS OF HIS SON AND DAUGHTER AND SENT PHOTOS TO THE CUSTOMER—HE

WANTED TO BE ‘UNFORGETABLE’

2.PARTNER WITH YOUR CUSTOMERS

• What is your customer’s situation: what do they really need?

• What can you do to help them?• A bankruptcy attorney decides to

have seminars for his customers—how to go back into business…

• Grandpa helped people take care of their gardens. He gave them lilac shoots.

HE KNEW THE BEST WAY TO GET PROFITABLE CUSTOMERS WAS TO

HAVE THEM BRING IN THEIR FRIENDS

HE KNEW FREE WAS GOOD, BRING YOUR FREINDS

GRANDPA WOULD HAVE BUILT A FACEBOOK PAGE

• “Are you on Facebook?• He would have a page for his business—the

fruit trees.• Why? To listen to his customers and be

nosey.

HE WOULD SIGN UP FOR LINKEDIN

• He joined the wine lovers group.

HE BLOGGED! HE WROTE ABOUT ITALY

HE DIDN’T SAY ‘CLOSED FOR THE WINTER’, HE SAID--

HOW MUCH DOES LOYALTY MATTER?

3.HE KNEW THE IMPORTANCE OF HIS ON LINE BRAND@TONYWINE

TONY KNEW WHY CUSTOMER’S LEFT

68% Leave because of “perceived indifference.”

14% Leave because of dissatisfaction.

9% Leave because of competitive reasons.

91% of customer defections can be impacted by staying in touch! What are you doing to “stay in touch? Harvard Business Review

IT’S TIME TO PUT SOME RELATIONSHIPS IN YOUR BUSINESS!

• Rules of engagement have changed.

• Less customers, changing demographics, less money.

• Building less customers but better customers.

4. BE CONSISTENT, SHOW WHAT YOU CAN DO—TONY ALWAYS THOUGHT “OUT OF THE BOX”

GIVE CUSTOMERS WHAT THEY NEED; EVERY DOLLAR SPENT IS WORTH A DISCOUNT ON THEIR GAS

CUSTOMERS WILL PAY FOR EXPERIENCES: A WINE TASTING!

• There was also a hotel in California that had free manicures and shoe shining on Thursdays.

• Guests booked their stays around these services.

• Parties, meet other guests, have fun.

5. BUILD DIFFERENTIATION

DO SOMETHING THAT NO ONE ELSE IS DOING..TONY’S DOG DID YOGA ON THE

LAWN

JC Penny decides to do Yoga in their stores. Can you do Yoga in your business? I would do Zumba.

YOU MUST MAKE GETTING CUSTOMER’S ADDRESSES A PRIORITY

• “We would love to have you on our mailing list, preferred customer list or special offer list..”

• Keep track of points, Staples rewards, Panera Bread, Starbuck points—reward the loyal customers. The ones who keep coming back.

• Get their birthdays, anniversaries, kids birthdays—anything personal so you can connect.

HE LOVED FOURSQUARE-HE PUT IN A SPECIAL PARKING SPACE!

IF YOU’RE DOING B to B TREAT YOUR CUSTOMERS AS BUSINESS PARTNERS

• You need to understand your customer’s business as well as they do.

• Ask yourself: How can you help them?

HE WAS CONSISTENT, HE KNEW IT WAS THE KEY

• Everyday get emails and addresses.

• Build your data base• Follow through with your

customers.• Build your niche.

WHERE ARE YOUR CUSTOMERS?

• The average business loses 10% of it’s customers yearly, not because of price.

• 85% of customers interviewed said they will pay 10-15% higher prices if the customer service is great.

The key? Consistency!

YOU DON’T NEED ALL THE CUSTOMERS JUST THE PROFITABLE ONES

THE LARGEST AND MOST EXPENSIVE CASKET COMPANY LOSES MARKET SHARE

• People wanted green; is this hard to figure out?

• You must be proactive.

• Remember Smith Corona?

6 . TONY USED THE 3 E’S—THAT WAS HIS GRANDAUGHTER’S JOB

I HAD THE FRUIT STAND!

• Excitement, enthusiasm, engagement

YOU MUST KNOW WHERE YOUR CUSTOMERS ARE AT ALL TIMES

7. TONY WAS ITALIAN, HE HAD THEIR PHONE NUMBERS, LICENSE PLATE

NUMBERS!

Know where they are, what they like and where they hang out.

8. HE HOSTED A CHARITY EVENT, HIS WIFE, CHRISTINA LOVED DOGS AND CATS

9. SPONSORED A PUBLICITY STUNT

HE THREW MONEY OUT OF A PLANE AND WATCHED HIS CUSTOMERS LINE UP!

10. TO HIM ALL OF THIS WAS CUSTOMER SERVICE

• He had someone call his customers and find out what they liked. He found out his competitor was giving hay rides!

• He decided to have trail rides.

TONY WAS MY GRANDFATHER-WERE HE STILL ALIVE HE WOULD BE WAY AHEAD OF

HIS COMPETITIORS

WHEN WAS THE LAST TIME YOU TALKED TO YOUR CUSTOMERS?

Lisbeth Calandrino

Helping businesses build loyal relationships through

customer service and sales training

518.495.5380www.Lisbethcalandrino.com

Redhotcustomerservice@nycap.rr.comhttp://capitalbusinessreview.com/