Showing posts with label selling. Show all posts
Showing posts with label selling. Show all posts

Sunday, November 8, 2015

How To Navigate The Complex Retail Sale And Increase Your Conversion Rate In Four Steps


By Bob Phibbs (The Retail Doctor)

Do you ask a wall of questions before ever getting a customer excited about the possibilities in what you sell?

If so, I’ll bet it is affecting your conversion rate (the number of people you encounter divided by the number of times they purchased).

Such was the case when I went into a flooring retailer…

Me: I’m looking for a new wood floor.

Guy: Are you doing it yourself or are you using a contractor? Is your floor above grade or below? Are you looking for real wood, laminate, or vinyl? Do you have a budget?

He asked about six other questions, but my ears had stopped processing. All I could hear was my own voice, Boy are you unprepared – this is work. Let’s leave.

Such a wall of questions ultimately tumbles onto the unassuming customer making them feel stupid and foolish.

Are you doing that to your customer?

I’ll bet you are…

There are varying degrees of complexity to many sales in a store.

Maybe your customer needs to know what their dinner companion will be wearing because she wants a complementary look. She wants to look like a couple, not like two individuals.
Perhaps a contractor needs to be consulted for items in a new kitchen.

Maybe the doorway dimensions need to be known to make sure the dream couch will fit through it.

Like everything when it comes to retail sales training, there’s a way to get that information…and a way not to.  Let's iron out the wrinkles in your selling process...

Here are four tips for selling in retail to navigate a complex retail sale:

1) First and foremost -  create the vision of what your product can do for your shopper. This is the fun side. This is where you create wonder, where you encourage people to look, touch, and imagine.  Get them to fall in love with it first. Show options in different price ranges and styles. The important thing is to keep all of your options to sell wide-open, to show your customer all you have and all you can do for them.

2) Present each piece of information you need in bite-sized chunks.  While you may need a wall of information and only questions will help you build it, you need to build it brick by brick. Your goal is to reframe fearful into safe.

If you need the dimensions of a doorway for that couch, is there a way to approximate the size?
For example, you could ask Does it feel like an average doorway to walk through – not too tight? You could ask them to hold out their elbows at shoulder height and touch fists together and then ask, This is about the space we need – does that feel right?

If it does, you can move on. If there is still a question, you need to provide safety, so now you offer options. 95% of the time we can deliver through a doorway like that, if not we look to see if we can use a window.  In the rarest of cases, they’ll measure before bringing it in and if there’s no way it can be done, we’ll cancel the order. Sound good?Your goal in a complex sale is to keep the motion moving forward until you know the sale is dead. This keeps you from stopping a sale before it even starts.

3) Recap all of the possibilities that could throw the sale off by assuring the customer you’ve examined everything.

To finalize the sale,  restate each brick of information once again. Remind them…

We’ve approximated the size of the ring;we’ve got the rose gold color she likes;we’ve got plenty of time to get it resized or let her pick out something else.

And always end by asking, Did I miss anything?

Again your goal is to anticipate their fear of the unknown and remove it to make the sale. You need to show them you have thought of everything - the things they’d thought of and the things they hadn’t - so they know they are in good hands.

4) Finish by making a personal request. Invite me to the wedding when she says yes.
I hope you’ll post a picture of your outfit online; I would love to see it.
Remember a party is a great way to show off your new furniture. Again, I’d love to see a picture of the fun.
 

In Sum

A sale that is dependent on more than one factor can make untrained employees want to get all their questions out immediately. They don’t want to waste their customer’s – or more likely – their own time.

The problem with all of those questions for information is they front-load a potential sale with a bunch of heavy baggage. That makes the customer’s whole effort to buy an effort. You never want that to happen.
 
Customers want to spend money freely and not feel shamed that they didn’t come in armed with everything they needed to know.

When you keep your focus on creating a vision...and not a wall... you’ll make the complex sale simple. 


And after all, isn’t that what you’re paid to do?


To View Original Article: http://www.retaildoc.com/blog/how-to-navigate-the-complex-retail-sale-and-increase-your-conversion-rate-in-four-steps

Friday, October 30, 2015

Stop Trying to Speedily Close the Sale. Slow Down when selling Retail or You're Toast

By Bob Phibbs (The Retail Doctor)

Steve was a very good salesman.

He had enthusiasm; he had product knowledge, and he had a swagger to his presentations.  

He wanted to help as many people as possible  - to get ‘em in and quickly get ‘em out when closing a sale, so he could then go onto the next customer.

About half the shoppers who encountered him thought he was fun and a bit outrageous.

But he had a finite time he’d given himself to wait on someone. If the customer wanted to bond a bit and enjoy his company...dicey.

Once their allotted time was up, Steve would try to close the sale before the customer had been convinced of the worth of the item with some of those awful closing techniques.
Remember these 60’s closing techniques?

Wednesday, September 16, 2015

How to Use Trade Shows to Source Products: A Guide for Retail Stores and Online Sellers

How to Use Trade Shows to Source Products: A Guide for Retail Stores and Online Sellers            

Why trade shows are more important than ever to finding wholesale product for your store and online business.



I am now strictly an online seller, but I did have a brick and mortar retail store for over ten years.  It doesn’t really matter which you are, but in both environments, I always found trade shows to be my single best venue to source wholesale products to resell.

Here’s why trade shows are important to retailers, both in-store and e-commerce:

 

Trade Shows Help You Develop Relationships


Over the years one of the most important things I have learned is the importance of developing a good relationship with my wholesale suppliers.  And that is one of the biggest advantages of attending trade shows like ASD Market Week – you get to meet the sales reps in person and take that first step in developing a relationship. Now you are probably thinking, “With so many people going through the show, how would any sales rep remember you?”  You would be surprised.  When I see a product that interests me, I don’t just ask for the price and a sales sheet.

I actually take a few minutes to chat with the rep and make a point of remembering his name and talking about a few things that he or she will remember.  Then when I get home I call or email them after the show and remind them of what we talked about. In addition to sales reps, in many cases (especially at smaller companies) the actual business owner attends.  This is an excellent opportunity to get to know the faces behind your potential suppliers. When I run into that situation I really spend some time with them and make sure they remember me.

 

Trade Shows Let You See the Product Quality and Expertise for Yourself



Another big advantage of shopping at a trade show versus via a catalog or a website is that you can physically touch the product, get a feel for its quality, and better assess whether you think it will sell in your venue. (Check out some of the hottest products from the August show.)  

At many of the larger trade shows like ASD you’ll find vendors from many other countries, which can lead to expensive shipments and high minimum quantities; it’s really important to judge the quality of an item before ordering it.

 

Trade Shows Save You Time and Money



Lastly, there is the endless variety of products at a show like ASD.  I also attend specialized shows in my various product categories including jewelry, apparel and sporting goods, but I can see all of these at ASD.  (ASD even offers on-site matchmaking tools to help you more easily find the best vendors for you.) Attending ASD means I can do a fewer number of total shows each year, saving me time and travel costs because there are so many product categories under one roof.

To view the original article please visit: ASD Online

Tuesday, September 8, 2015

Retailers are Finding That 'Sustainable' Sells

By Ian P. Murphy | August 19, 2015                                                                                   

 
For many retailers today, sustainability sells. 
 
But sustainability is no longer a matter of providing a reusable shopping bag or cutting greenhouse gases.
 
Behind-the-scenes moves have a fantastic effect on many retailers’ environmental impact and earn plenty of good press, but more and more retailers are bringing sustainable products to store shelves—and saying so is a selling point.

 

A natural spin

Not surprisingly, outdoor retailers dedicated to enjoying nature lead the pack. Last month, longtime ecofriendly operator Patagonia released a line of denim that features 100% organic cotton and an innovative dye process that uses 84% less water, energy, and chemicals than the typical pair of jeans. The line is also Fair Trade Certified, meaning laborers making the jeans are compensated appropriately.
 
“Traditional denim is a filthy business,” said Helena Barbour, director of the company’s Sportswear business unit, in a release. “We wanted to find an alternative solution to using the standard indigo dyeing methods we once employed. It took several years of research, innovation, trial and error, but the result is a new path for denim. We’re hopeful other manufacturers will follow suit.”
 
Rather than following, Levi Strauss & Co. had already gone down this road in 2010 with the introduction of its Watertold
the Los Angeles Times.

 

Recycling for reuse

Rugged apparel marketer Timberland offers an Earthkeepers collection of shoes that incorporates recycled PET plastic from beverage bottles; the company’s Polartec, SmartWool and Bionic canvas fabrics also contain recycled PET. Since 2007, the company has kept 128 million bottles out of landfills.
 
“The idea is to put the most environmentally responsible materials possible into our products,” said Emily Alati, director of materials development for Timberland. “We created more and more material options to substitute for virgin raw materials where possible to meet this goal.”
 
Similarly, Portland-based NAU offers clothing made of sustainable materials such as recycled polyester and organic cotton. And retailers with a feel-good or holistic health pedigree rely on sustainability, too—GAIAM’s recycled-content yoga mats and organic-cotton bedding and apparel help buyers reduce their environmental impact.
 
West Elm jumped on the Fair Trade bandwagon last year with a line of rugs handcrafted in India, becoming one of the first home goods retailers to pitch products based on ethical working conditions.
 
“West Elm is empowering consumers to purchase according to their values and help alleviate poverty,” said Paul Rice, CEO and founder of Fair Trade USA.
 
Brands that support a cause “actually sell better,” Bloomingdale’s CEO Tony Spring told MarketWatch. “We are going to always look for what’s the most exciting product. But if there’s a human side to it, it sells even better.”

 

Transparency in trade

The key to selling a product based upon sustainability is to put the information directly in front of shoppers. For example, Timberland offers a Green Index rating to give customers an idea of products’ environmental footprint including climate impact, chemical use and resource consumption.
 
Outdoor retailer REI labels many of its apparel products with “ecoSensitive” labels to inform shoppers how much recycled, renewable and/or organic fibers they include. And Patagonia offers full disclosure by listing all of the textile mills and sewing factories it employs, as well as a product impact tracking tool, The Footprint Chronicles.
 
“Transparency efforts pay dividends,” said a 2013 Retail Sustainability Report from the Retail Leaders Industry Association (RILA). “When operations are transparent, retailers and suppliers alike can more easily identify opportunities to improve performance, and can develop plans to reduce costs or supply chain risks.”

 

Large retailers on board

The message is spreading. Even Wal-Mart is advocating a worldwide sustainability index that allows customers to assess goods’ environmental impact. Target’s new sustainability index already scores products based on toxicity, transparency and other factors such as recycling potential, and promotes high-performing products from Ben & Jerry’s, Annie’s, Stonyfield, Seventh Generation and Method, under its “Made to Matter” banner.
 
“Simply put, what matters to our guests matters to us,” Target’s chief merchandising and supply chain officer Kathee Tesija said in a statement. “We know our guests are looking for better-for-you and better-for-the-world products, and our research shows that they seek authenticity and transparency from the brands they buy.”
 
That factor is unlikely to dissipate in the age of the mobile web, which has helped make every purchase a considered purchase—and allows consumers to be just as careful in sourcing products for personal use as many companies are in their supply chains.
 
“While the business case for sustainability is clear, retailers also increasingly understand that the customer of tomorrow will demand more information about the environmental and social impact of the products they buy,” Bonnie Nixon, executive director of the Sustainability Consortium, said in a 2012 RILA report.
 
To view the original article please visit: Retail Dive

Monday, August 10, 2015

3 Deadly Traits That Kill Your Efforts To Attract and Keep Customers

The Retail Doctor 08 | 09 | 15            

Some of the most popular questions people have for me are:

How do I get more customers in my store?
How do I increase my sales?
How can I sell more?

I get it. Traffic to stores and malls are down, and while you might be tempted to haul out that old losers limp They’re all buying online, don’t.

The fact is 85% of the shopping that is to be done for the foreseeable future according to McKinsey will be in brick and mortar stores.

According to TimeTrade, as much as mobile shopping is hyped, the reality is mobile purchasing is slow to grow; only 13% of respondents have previously made a purchase using a mobile device.
 

So if the endless aisles of online aren’t the culprit to lower store sales, what is?


The traits and skills necessary to engage shoppers, to get them to buy today and to tell their friends about their wonderful experience are largely missing throughout retail - from the highest luxury brands, to the biggest big boxes, all the way to the smallest boutiques.

In short…

We have to unpack the baggage of our lives if we are to be able to escape into the world of retail and our customers.

What does that mean?

Quite simply, most of us have been able to get away with some very bad personal habits in our own lives.

We listen to talk over someone.
We allow ourselves to be distracted while still expecting no one can tell.
We sympathize when we need to empathize.

Here are the 3 traits you need to adopt and use if you are trying to attract and keep your customers:

Concentrating on the Why

How many times have you forgotten a call you were supposed to make? How about letting a deadline slip ? How many times have you chatted on the phone while checking email or Facebook?

We are a distracted group balancing multiple sources of information - and none of it too well.

That plays out on your salesfloor when employees only half-concentrate on your shoppers.

When they only half-understand why they are there.

That results in only half-hearted engagement...and shoppers leave.
 
Actress Katherine Hepburn noted that Spencer Tracy had the ability to tune out the audience or the crew to concentrate just on the person speaking to him. It is what made audiences connect with him.

When we don’t concentrate on the shopper for more than a few seconds, we only grasp a snippet of what they say and based on that, we react.

Consider a couple who walks into an independent nursery looking for something to plant. They ask an employee what type of palm tree they can put by their pool. The salesclerk blurts, “You can’t put a palm tree by a pool. They are just too dirty!”
 
“Then what can we plant?”
 
“Pool plants over there.” He points, turns and leaves to return to the counter.
 
The wife thinks, That was rude and he doesn’t know any more than we do. Ten seconds later they’re in their car headed for the big-box.
 
Since he didn’t concentrate on his shopper to determine why they wanted the tree, he didn’t understand that they didn’t necessarily want a palm tree; what they wanted was a tall accent tree for their pool.
 
A great salesperson, one who is interested in meeting another human being first and selling the widget second, develops their concentration skills so that the only person they are interested in at any given moment is the person in right front of them.
 
When you develop the skill of concentration, you ask yourself when looking at a new customer…
 
Of all the days in their life, why today are they walking in to this store?
 
To answer that question, you concentrate on the shopper to learn more than their first words might say.
 
You can understand that shopper’s gift might be to receive someone else’s forgiveness, or their purchase is to reward themselves, or in the tree story, to find a final addition to the dream backyard they are creating for their friends and family.
 
When you can concentrate on their reason for being in your store, you can develop the next trait...


Listening For The What

Being able to listen is related to concentrating – but adds the what, not just the why.
 
When I first started working on my choral-conducting, my professor Rod Eichenberger, would stop me mid-phrase and ask, “Are you getting the sound you want?” 
 
“I dunno” I replied. I was so concentrated on why my hands had to move in a certain way that I failed to connect my actions to what I was hearing from the chorus. 
 
Notice, he whispered in my ear... and I restarted. 
 
Noticing is listening. It’s what tells another human being they are worthy of your interest. 
 
When we don’t feel listened to, we shut down. 
 
How we hear someone is falling on deaf ears as we text, emoji, and gif our communication skills. 
 
But if you want to be a professional, a salesperson who enjoys their job and the fun of selling, you must standout from those who are awash in a world of words they fail to hear. 
 
I came face-to-face with such an unlistening person behind a counter at a deli...but it could have been anywhere. 
 
When she asked what I wanted, I said “A six-inch chicken sub on white with green peppers.” 
 
She put on her gloves and asked, “Was that white or wheat?” 
 
“White.” 
 
“And what did you want?” 
 
“A chicken sub with green peppers.” 
 
“Was that a six- or twelve-inch?” 
 
“Six-inch.” 
 
“What did you want on it?” 
 
“Green peppers.” 
 
“Did you want cheese?” 
 
“No, just the peppers.” 
 
“You don’t want me to warm it up first?” 
 
“Yes, I want it warm.” 
 
“Well you said something about it being cold.” 
 
“What are you talking about? I never mentioned anything about cold.” As I looked down, she was preparing a twelve-inch sub. “Uh, that’s supposed to be a six-inch.”
“Oh, I really can’t do two things at once.” 
 
“Then you are in the wrong business,” I said. 
 
Brutal like Donald Trump, maybe
 
But the point is there are millions of employees working in retail who are only half-hearing what people are saying. 
 
That means they’re only half-understanding what their shopper is trying to solve. 
 
That translates into only half-caring about what that shopper wants. 
 
And probably only half-caring that they work at your store. 
 
No wonder so many shoppers feel disconnected when they go shopping in a brick and mortar store...the one place their money should be making people listen to them. 
 
So how do you develop your employees’ listening skills?
 
A fun exercise to use in a meeting is to select a true story you have experienced with a shopper. Write it out so you make sure you get all you want into the story. Give as much detail as possible but don’t make it so straightforward; include some irrelevant details about the weather, or you getting to work on time, or the trash overflowing - doesn’t matter.   
 
Give your employees pads of paper and pens. Tell your story. (If you really want to test them, leave out one or two sentences.) At the end, ask them to write down three relevant details you mentioned in the story. Ask them to identify two things that had nothing to do with the story. Ask them if there are things they feel were left out.
 
It isn’t important that they get this perfect; it is simply a lesson in listening. 
 
When you’re able to develop concentration and listening skills you’re ready for the third trait… 
 

Empathizing to understand

 
Empathy is the ability to imagine all the sensations of another person. You want to feel what they feel. 
 
Maybe a shopper is frustrated an old favorite jacket has worn out. Because you can empathize with how that would feel and use all of your knowledge about the products in your store, you hold the solution. 
 
Maybe they have been searching online for a purchase, but something has been holding them back. When you have empathy, you understand that you have the wisdom to sort the options and solve their problems. 
 
Untrained salesclerks might only sympathize with how awful it is something wore out. In their world, yea it sucks is something they identify with. And that’s the end of it. 
 
Because they can’t empathize and feel what that shopper feels, they can’t help the customer move past and solve that problem. Both the clerk and the shopper are stuck.
 
How do you develop your empathy? 
 
You cultivate your curiosity about strangers. Studs Terkel once said, Don’t be an examiner, be an interested inquirer. 
 
To develop empathy, you have to give up the idea that as a salesperson, you're in charge. The truth is your customer is. 
 
And to attract and keep more buyers, you have to make sure you aren’t treating them like they are felons who did something wrong, or like they’re third graders needing to be prodded for every piece of information. 
 
To develop empathy, rather than just asking what are you looking for, ask questions that help you understand the frustrations, excitement, or perspective of the shopper standing in front of you. Then concentrate your listening on what they say. 
 
 

In Sum

The problem isn’t how do I get more customers into my store?
 
And it isn’t how to turn them into buyers… 
 
If each person on your team will concentrate, listen and have empathy for each person who walks through your doors, it will happen because... 
 
Shoppers are human beings looking for a friendly face...Someone who can concentrate on their needs at that moment. Someone who can listen to the emotion behind the purchase. Someone who can empathize and provide the solution just right for them. 
 
When you develop the ability to concentrate, listen, and empathize, you’ll be in the moment... 
 
Noticing. 
 
And customers will tell their friends you did.

 
To view the original article please visit: The Retail Doctor's Blog

Want more information on sales and customer service? Check out these blogs!
5 Customer Engagement Best Practices That Will Dramatically Boost Your Business
Not Just For Shoppers: How Mobile Helps Store Associates
It’s Not Just Luck: 4 Things A Brand Promise Needs to Drive Customer Loyalty   

Wednesday, January 14, 2015

15 Customer Retention Strategies that Work

About the author: Gregory Ciotti

Customer retention is incredibly important for growing a sustainable business, but before we look at some strategies for improving it, let's put an important data point front and center:
 
According to the Harvard Business School, increasing customer retention rates by 5 percent increases profits by 25 percent to 95 percent.

This is important to consider when evaluating your own customer loyalty strategies because in the customer service echo-chamber there is a lot of "hoo rah" about taking care of customers, but little discussion on the business side of things.

At Help Scout, we do things differently; we're all about loving customers, but we also aim to prove that great service is more than just the right thing to do—it's also good business sense.

In order to help you increase your own retention rates, we've compiled a list of our 15 favorite tips (backed by academic research and case studies) on increasing customer loyalty, divided into five easy-to-browse sections.

Let's begin!

Communication

It's hard to create loyal customers if they aren't paying attention to you. Given this fact, below are our favorite bits of research on clear communication with customers.

 

1. Stand for something.

The quickest way to get customers to ignore you is to not stand for anything. A study by the Corporate Executive Board that included 7,000 consumers from across the U.S. found that of those consumers who said they had a strong relationship with a brand, 64 percent cited shared values as the primary reason. If you want loyal customers, you need them to care about you ... so what do YOU stand for? 

2. Utilize positive social proof.

While negative social proof ("Nearly 90 percent of websites don't use heat mapping software!") has been proven to dissuade customers rather than encourage them, numerous studies on customer motivation have shown that positive social proof ("Join 20,000 of your peers!") is often the most effective strategy for getting people to listen.

 

3. Invoke the inner ego.

Despite what we often say, most people like things that resemble them in some way. This cognitive bias is called implicit egotism, and is an important thing to keep in mind when communicating with customers. In order to attract the sort of customers you want, you need to identify your target customers down to the last detail and then craft a brand message that perfectly matches their pains, goals and aspirations. It's easier to fill this existing demand than to create one.

Selling

If customers don't enjoy your selling process, they'll likely never do business with you again. Thus, selling to customers the "correct" way is an integral part of creating customer loyalty. Below are a few studies to help you improve the process.


4. Use the words they love to hear.

Not all words are created equal. Certain persuasive words encourage customers to buy more than others, in particular: free, new and instantly. When customers hear these words (and the promises they imply are backed up), they'll enjoy their purchases more than they would have otherwise.

 

5. Reduce pain points and friction.

All businesses, no matter the industry, are going to have to sell to the three types of buyers that are out there. According to neuroeconomics experts, nearly a quarter of these buyers will be conservative spenders, or "tightwad" customers. George Lowenstein of Carnegie Mellon University recommends using bundles, reassuring words (e.g., change "a $5 fee" to "a small $5 fee") and reframing as strategies to better sell to these conservative buyers. Read more about his advice here.

Reciprocity

Reciprocity is the social construct that makes the world go 'round ... or in your case, keeps your customers coming back. The premise is simple: Go above and beyond for customers and get rewarded with repeat business. The execution, however, can be trickier, so below is a compilation of interesting research on how to improve reciprocity with your customers.

 

6. Realize that budget is negligible.

Giving back to customers can appear incredibly costly, but it doesn't have to be. Instead, embrace the art of the frugal wow by understanding that reciprocity is built even with small gestures. In fact, psychologist Norbert Schwarz found that as little as 10 cents can create reciprocity between two individuals (it really is the thought that counts!).

7. Utilize surprise reciprocity.

Although reciprocity works incredibly well on it's own, research shows that it is even *more* powerful when started by surprise. For a simple example, recall a time that someone did something nice for you unexpectedly; the gesture probably wasn't all that unusual, but the fact that it came out of nowhere left a strong impression on you.

8. Make it personal.

In a study from the Journal of Applied Social Psychology, researchers found that waiters could increase their tips by 23 percent by the simple act of returning to tables with a second set of mints. So do mints have magic powers? Apparently not: The researchers concluded that the mints created the feeling of a personalized experience among the customers who received them. So it was the personalized service received that made them enjoy their experience so much more.

Support

This one is a no-brainer: You can't create a tribe of loyal customers without an exceptional customer service experience that keeps them coming back. In this section, we're going to bust a few customer service myths wide open, as well as tackle some important things you need to keep in mind when offering support online.

 

9. Speed is secondary to quality.

When it comes to customer service that keeps people coming back, the research shows that quality matters more than speed. According to a study by the Gallup Group, customers were nine times more likely to be engaged with a brand when they evaluated the service as "courteous, willing, and helpful," versus the "speedy" evaluation, which only made customers six times more likely to be engaged.

10. Customers enjoy businesses who know them.

Telling your employees to spend more time with customers might seem like folly, but smart entrepreneurs know that isn't the case. Numerous behavioral psychology studies have shown that everybody views their service experience as more positive when they don't feel rushed or ignored. Don't spend time idly, though; have employees attempt to find out key customer traits, just like Derek Sivers did with his employees at CD Baby.

 

11. Choose the right platform.

The best way to improve your online customer service efforts is to utilize the channel your customers most prefer. Although recent research has shown that a majority of people still prefer and use email more than other services (including social networking), you need to pick the channel that makes the most sense for your business. Hosting companies know that online chats are critical when their customers’ sites go down, but other businesses may have customers who are just fine using email as their primary method of contact.

 

12. Make it a communal effort.


Countless case studies have made one thing clear when it comes to creating an efficient support system: You need to keep everybody in the loop. At Help Scout, we use tools like Campfire to access real-time notifications of what's happening on the customer end; we were able to improve our response time by 340 percent by enabling a support room that all employees can access. Read more about how we did it.

Loyalty Programs

The key to creating customer loyalty programs that work is to know why customers use them and what gets customers to keep using them. Below you'll find consumer research that answers these questions.

 

13. Get people started.

Consumer researchers Joseph Nunes and Xavier Dreze are known for their studies on The Endowed Progress Effect. Their results have conclusively shown that the biggest wall that prevents customer loyalty programs from sticking is getting people started. They've shown through their notorious "car wash study" that people are twice as likely to finish loyalty cards if they are automatically started (or rewarded) as soon as they sign up. Read more about this process here.

14. Get ideal customers to be VIPs.

Additional research by Nunes on loyalty programs has shown that people just love being VIPs or gold members of programs. There is one caveat, though. This only works when people know there is a class below them on the totem pole. Speaking to human nature, Nunes saw a notable increase in gold members’ participation as soon as he implemented a lesser silver class.

 

15. Label your customers.

A research study on voting patterns conducted by Stanford University conclusively showed that people are more likely to participate in something if they are labeled with a positive trait. Our friends at Buffer refer to their premium customers as "awesome" members, and even label their upgraded payment plan as the "Awesome Plan"—a much easier phrase to embrace than "paid member."

To view the original article visit: http://www.helpscout.net/blog/customer-retention-strategies-that-work/