Showing posts with label customer retention. Show all posts
Showing posts with label customer retention. Show all posts

Thursday, October 29, 2009

NO THANKS, MAYBE NEXT TIME: MANAGING CUSTOMER OBJECTIONS


"Are you people total idiots, or what?"


Oh yeah, she'll be back.





Controlling Customer Objections On Line:

It Ain't Like Main Street


If you work in the world of commerce (you do, that's why you're reading this) you most certainly encounter customer objections - reasons the customer or client gives for NOT buying your products or services.


Now, in the 3-D, Main Street world, you hear these objections and address them as they arise. Face to face. That's what sales and marketing are all about. But, if you own a web-based business, there's no face time. So how do you address customer objections?


Anticipation. Preparation. Transparency. Trust. Your site text, the design, the look and feel - all of these should be targeted to address anticipated customer objections. The "push-back" as it's sometimes called on car lots. (Lots of face time, there.)


So, get ready for 'NO, THANKS' and a bounce rate high enough to cause a nose bleed. How do you handle the objections of site visitors? Well, if you know what you're doing, if you know your buyers' needs and expectations, it's not rocket science.


Check it out.

If you’ve built a career in sales you know all about customer objections. Objections are the reasons prospective customers give for NOT buying a product or service. It’s too expensive. It’s too complicated. I don’t really need it. These are common customer objections whether we’re talking about buying a new car or whatever it is you sell on your web site.

Even if you sell the best products or provide A-1 services, and even if you have the lowest prices on the entire web, you’ll encounter objections. Problem is, you won’t encounter them face to face in the world of e-commerce, which means you won’t have the opportunity to address objections face to face. Therefore, controlling objections must take place in the content of your website.

Additionally, in the real world, managing objections is reactive. The customer objects. The salesperson reacts with a counter to the objection. In the impersonal marketplace of the W3, managing customer objections must be proactive. Assume you will encounter objections and address them before the visitor clicks off to another site.

What Objections Will You Get?

Depending on what you’re selling, objections will differ. For example, most customers won’t be concerned with a long-term warranty on a $15 calculator. If it dies, buy a new one. On the other hand, if you’re selling $2,000 laptops, your customers are going to be looking at your warranties, guaranties, return policies – anything and everything that protects them from being ripped off.

And as a good citizen of the web community, you should have no problem posting warranties and return policies where they can be easily found and easily read! (Wouldn’t you like to get your hands on the guy who invented fine print?)

So what objections are you likely to encounter?

It costs too much money.

I saw it for a lower price.

I don’t have the money right now.

My old one is good enough.

It looks confusing.

I don’t understand how it works.

I don’t understand the guaranty.

I don’t (really) need it.

My (insert relation’s name here) would kill me.

Maybe another time.

There are plenty more. I’ve already got one; I want something with more features or fewer features (usually not the same consumer, btw); I don’t like the color, shape, size, design, feng shui or some other aspect of the product. The list is as varied as the customers who visit your web site.

And you better know what objections visitors will raise and proactively address them in your site’s content.

How Do I Address A Customer Objection?

Once you’ve determined which objections you’ll most likely encounter from site visitors you develop a strategy to address the objection before it even becomes an objection.

Example #1: It’s too complicated.

Okay, take a look at this 3-minute Flash demo that’ll show you how to assemble the (whatever it is you sell). You’re not addressing the objection with a long body of text explaining how to assemble your gizmo. You’re providing a clip that actually shows each step of assembly with text burns identifying key steps and just where Tab A is.

Example #2: It’s too expensive.

How will the product improve productivity or quality of life? Let’s say you’re selling hot tubs. You point out the benefits to the consumer. Forget product features. The “too-expensive” buyer must see personal benefit(s) in order for you to manage the objection.

“You come home from a stressful day, hop into the heated, soothing water, turn on the relaxing massage jets and feel the cares of the day melt away.” The buyer who believes “it’s” too expensive doesn’t care about the 15hp motor, the 18 water jets and the automated chlor-tab release. S/he needs to see personal benefit. Once that’s established, move on to features in you sales copy.

Example #3: I saw it for less at www.thecheapestsiteintheworld.com.

If you can’t beat the competition on price – and many times you won’t be able to compete with big box store prices – time to highlight the quality of your service, your easy return policy and the fact that there’s no re-stocking fee. (Wouldn’t you like to get your hands on the guy who invented the restocking fee?)

Some sites offer a “Beat any legitimate price” guarantee. You can, too. Even if your price is a bit higher, most visitors won’t take the time to find the lowest of the low and if they do, you’ve lost a few bucks but have a happy customer – one who’ll be back to buy the accessories.

Example #4: I don’t want to buy a (fill in the blank) on the web.

Would you buy a $4,000 diamond engagement ring online? From a site you never heard of? Not many people would. Too many risks. For all the buyer knows, you’re selling “diamacroids” as real diamonds. And if you’re half way around the world, the buyer has no recourse.

Establish trust be establishing verifiable credentials. Member of the online BBB, certified by the Diamond Sellers Association of the World, graduate of the School of Gemology, 140 years in business, etc. You’d buy a diamond online from Tiffany’s because the trust factor is built in. Not so for www.billscutratediamondbazaar.com – no matter how low Bill’s prices.

You get the idea. To successfully convert a visitor into a buyer requires that all objections be addressed in site content using a variety of media to get the job done. A Flash demo, an audio clip and picture of you, a picture of your factory, a virtual 360° tour, a step-by-step, idiot-proof assembly guide, 24-hour tech support – whatever works best to counter the objection.

All kinds of people will stop by your web site and each will come with his or her own expectations and objections. Meet those expectations and counter those objections right from the start. It’ll do wonders for your conversion ratio.

It’ll also keep your repeat buyer list growing. Why? No objections.


Call me.

Webwordslinger.com

Wednesday, October 14, 2009

CUSTOMER RETENTION: WANT THEM TO COME BACK?


Customer Retention:

Keep Them Locked In Place

How much did it cost you to get your latest customer? $0.50? You should be so lucky. $5.00? Ummmm, maybe. $10.00? You’re getting warmer.

The fact is, most site owners don’t have a clue how much it cost them to acquire a customer. More importantly, they don’t know if the customer made enough of an initial purchase to even cover customer acquisition costs such as Google AdWords, a press release, syndicated content or some other means of attracting attention on the W3.

However, you can get a rough estimate of cost per customer by totaling up marketing and promotion expenses and dividing by the number of customers – not just site visitors but visitors who converted to buyers. And this is far from a pointless exercise. When you determine just how much it cost you to recruit a customer – a paying customer – you’re going to want to keep that person coming back time and time again.

The Importance of Customer Retention to Site Success

It’s called customer retention and if you’re just starting out in the wild world of e-commerce, you’ll soon realize how critical customer retention is to your long-term success. And, even if you’ve been doing this a while, there are plenty of steps you can take to retain the customers you’ve accumulated over the years. Is it worth it? What do you think?

So here are a few tips that have worked for companies as diverse as Amazon and Netflix. And both of those e-businesses are doing well with their customer retention strategies.

Personalize the Buying Experience

You can do this using your database to deliver customized content to each visitor. You can welcome each customer by name and offer suggestions for purchase based on their past buying history.

Gather Customer Data

Two ways to do this: either through the use of metrics software or by providing repeat buyers (those are the ones you love) a form to write both gripes and praise. Fix the gripes. Expand the praiseworthy features. Easy. Oh, and don’t forget to mention that this form is for repeat customers only so you can improve both your products and services to enhance that repeat buyer’s on-site experience.

By the way, this kind of “personalized” input will probably reveal problems that never occurred to you. Conversely, it’ll point out your site’s under-utilized strengths like a one-click checkout, for instance.

Stay In Touch

Even small sites have new products and special sales. Use your database to provide email announcements for “customers” only.

Now don’t overdo this or your emails will end up in the recycling bin. However, the judicious use of email is very effective. Check out ajferrari.com. It’s a relatively small site that does big business in selling authentic Italian olive oils and other hard-to-find foods from Italy.

During the holiday season and a few weeks before Mother’s or Father’s day, this company sends out an email announcing gift ideas – and these emails pull big time.

Create a Customers Only Section

This requires a log in name and a password but it provides lots of useful informational content about the company’s products or services. Again, not too much hype. Keep the content informational to provide a little bonus for your regulars.

You may also want to consider adding a customer’s forum in this section – a place where regulars can share their experiences – good or bad – with your company (fix the bad) – they can exchange recipes, strategies, ask and answer questions. It’s a great way to build a site community – a group that returns to your site on a regular basis. And buys stuff.

Reward Loyalty

Free stuff. That’s always a nice reward. Offer free shipping to all of your regulars or offer a free gift with their next purchase. A free ebook download – anything that says “Thank you, we appreciate your patronage.”

BTW, these loyalty rewards may do better when placed in the “Customer Only” section so you don’t alienate newcomers to your site.

Surprise Savings

Regular customers will stay that way when you offer surprise savings on certain items. As items are placed in the shopping cart, you can flash a “Surprise Savings” icon announcing that “because you’re a regular customer, this item is only $5.99 instead of the $10.99 new customers pay.” Think of the old-time Blue Light Specials. It’s like free money and your regulars will definitely appreciate it.

Coupons work, too. Place them throughout your site so that visitors have to search for them, like a treasure hunt. Coupons can knock 10% off your total purchase price, provide free shipping and handling or offer a free thank-you gift – a show of appreciation for the customer’s regular patronage. And the customer gets the benefit today at the POP!

Simplify Everything

Keep things simple for regulars. Provide a one click checkout so these regulars can load up their shopping carts, make a single checkout click and their goods are on the way. Easy.

Provide a 24-hour customer service line. And even if you’re just starting out and cash is tight, this might be worth outsourcing. Otherwise you may end up spending your days handling customer care – not a happy thought – when you could put your time and energy to better use – like growing the business!

Make returns easy, too. Larger online businesses keep complete records of the buying practices of their customers. So, if you call in with a problem, your account pops up on screen telling the representative everything s/he needs to know about you.

If you’re a big spender and a regular, the service rep will do handstands to make sure you’re happy – even if it means the business loses money on this one sale. Your customer profile shows you’re worth keeping.

However, if you’re a first-time buyer or, worse, a customer who complains about every purchase, don’t expect the same treatment that good customers receive. Good customers are worth the effort. Problem buyers aren’t.

Always Over Deliver

One online company that caters to new brides always includes a little extra gift no matter how small the order. One woman ordered two bed side lamps and received, as a gift, four place mats – which probably cost as much as the two lamps she ordered. Think that customer will be back? She will.

This is a great way to get rid of excess inventory and maintain customer retention. But it doesn’t have to be a gift. It can be going the extra mile – overnight delivery or a special order – anything that makes the buyer feel as though you care – because you do care…a lot.

It costs you money for every buyer you get so it just makes sense that once they’ve become a customer, you keep them coming back by creating customer loyalty in lots of little ways.

Finally, No Unpleasant Surprises, Please.

Don’t forget to eliminate any unpleasant surprises. For example, a customer places a $9.95 order only to discover at the checkout that there’s a $7.95 shipping and handling fee. There’s an abandoned shopping cart and rest assured, that customer won’t be back.

Or, how about advertising an item on site only to inform the buyer that the item has been back ordered and won’t ship until the boat arrives from China. Think that customer will be pleased upon hearing that? How about orders that take six weeks to fill? That’s a no-no for sure.

Look you worked hard and paid for every one of your customers so everything you can do to keep them customers is, in the long run, going to improve your bottom line.

Back in the day, there was the view among merchants that “The customer is always right.” Somewhere along the way, that idea got lost. But in the intensely competitive world of e-commerce, the idea is making a comeback.

So, have a sign made up. Hang it where all employees (including you) can see it. In big bold letters, it should read:

THE CUSTOMER IS ALWAYS RIGHT. ALWAYS!

That’s the best way to keep the customer base you’ve worked so hard to build.


Hey, it costs 10 times the dough to find a new client than to keep an existing client. Doesn't it make sense to keep the clients you have? Call me. Let's talk.

Later,

Webwordslinger.com