Remember that satisfied customers do not necessarily mean loyal customers. Positive growth for a company requires that you maintain your existing customer base as you acquire new ones. Just because customers say they are satisfied with your company doesn’t mean they will always be around. There is always another company claiming to have a better product or a lower price. So how do you retain these customers? Your organization must remain customer focused.

How can you determine if your company is customer focused? Ask yourself these questions:

Company Culture

• Does the direction of my organization begin and end with management or the customer?
• Does my company view marketing as only a cost center that is reviewed annually, or is it viewed as an advantageous competitive tool that is continuously reviewed?

Understanding Customer Needs

• Is our decision-making based upon assumptions and judgement calls, or has our company invested in a systematic way of collecting sales data and market research?
• Are our internal business conversations centered around pricing trends and backlogs, or on customer needs, competitive share and integrating customer solutions?

Competition

• How well do we know our competition?
• Do we simply know their product features or do we know the strategies, cost structures and business objectives they are implementing?

Company Structure

• Does our company operate on a crisis management and recovery basis, or is it focused on doing it right the first time?
• Is our customer communication properly directed toward the appropriate audience segments?

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By now you may be asking yourself how your company can create a stronger customer focus. Here are some suggestions:

• Study your competition. Know what they are doing right as well as what they are doing wrong.
• Use technology. Take advantage of software programs that assist you in determining which customers are most profitable to your business. Then take care of these customers and look for others just like them.
• Evaluate internal customer support systems and eliminate procedures that are creating barriers to serving customers effectively.
• Ask questions and then listen. Customer satisfaction can be used as a measuring tool for improving performance.
• Make the customer’s voice heard throughout the company. Customer feedback should make its way into each and everydepartment, not just marketing or operations.

Being market-driven creates loyal customers.

Customers appreciate having your attention. In turn, you’ll find customer loyalty provides other benefits such as:

• Increased profit margins...Loyal customers are repeat customers. It is always less expensive to maintain a customer relationship than it is to build a new one.
• Better perceived value...Loyal customers understand and appreciate value and therefore are less likely to price shop.
• Additional advertising...Loyal customers become an extension of your sales team. They provide invaluable word of mouth advertising.
• Inexpensive research sources...Loyal customers tell you what they like and don’t like.
• Favorable working environment...Loyal customers help create high employee morale and low turnover, thereby creating an atmosphere conducive to attracting good employees.

So the next time someone in your organization says a customer is satisfied, turn and ask him or her the question, “But are we satisfied?” Strive to make every satisfied customer a loyal customer at every opportunity.

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