"Maximize The Customer" Hit A Nerve

I think we hit a vein of gold. In last week’s newsletter article, I used an expression that I don’t know if I have ever used before. The expression was “Maximizing a Customer”. Well, that apparently hit a tender spot to many of you because the floodgates of comments started flowing into my office. The majority of the comments were really questions about how a store could maximize a customer.

Think about it. We are in a recession, business is tougher than it has ever been, yet there are businesses that keep on doing business. What are they doing? Well, one of the things they are doing is definitely Maximizing Their Customers. They are getting the most out of every customer who comes in, logs in, calls in. Doesn’t it just make sense? We are going to have fewer customers coming through our front doors. We better start maximizing the ones we have.

Here’s a partial list of my ideas plus ideas that I have received from everyone that I have interviewed regarding this concept. The question that I asked was, “What does maximizing a customer mean to you?”

1. Sell the customer as much as possible. To me this is the most logical way of maximizing a customer. After all, businesses make money when customers are buying more than one item. Therefore, in order to sell the customer more, we have to establish a mindset of multiple sales with our employees. Here’s a great time to remember my 4 magic words: Did you see this?
2. Collect as much data as possible about the customer that will aid in selling the customer. In other words, find out what a customer can buy from you, when they are likely to buy it, the price range, and how to keep in touch with the customer (telephone, email, text, etc.).
3. Create a system of keeping in touch.  Even if you are a resort store, there is no reason today not to keep in touch with the customer. This doesn’t mean sending out sale or price notices all of the time. It can range from a birthday card, a short article of interest, or even something newsy about your industry. The goal is to be in the mind of the customer.
4. Create a system that encourages customer referrals. Having customers refer people to a store that they like isn’t anything new, but in this economic climate, we have to embrace it more than ever before. This means that we must ask our customer for friends who would like what we sell. You should collect contact information and then make them an offer that they cannot refuse. An example could be 25% off on their first visit to the store and then reward the referring customer with a $20 gift card. Yes, it seems like you are giving a lot, but think about the lifetime value of that customer.
5. Bounceback coupon. This is a practice that is becoming more popular because of the need to maximize a customer. It means offering the customer a percentage of their current purchase in a coupon that must be used at a later date. For example, if a customer buys $100 worth of merchandise, he will get a coupon for $20 to be used 3 days later but must be used within 7 days.
6. Use coupons. Recessions bring out the value minded customer. Don’t fight it-join it. Make sure that the coupons that you are sending out have tight expirations dates. Avoid percentages and use dollar amounts.
7. Testimonials. These are the most powerful form of marketing. Here is the 21st century way of doing it. Always have a digital camera and a notepad near the cash register. When a customer gives you a compliment, thank them, and ask if you can write it down and take their picture. Give the picture and quote to a graphic designer (or do it yourself) who can lay out them out to be used in one of 3 ways: a framed picture hung in the store, on your website, or even as part of a mailing piece sent out to your customers.
8. Use the customer for research. Ask the customer where they have shopped and about any interesting merchandise or ways of doing business they have seen. When asked the right way to the right customer, you will get unbelievably valuable information.
9. Customer service survey. This is something that we don’t always do, but it can be so valuable. Understand that our goal today is to develop our own community of customers or customer base. Our customers can look at our businesses as part of their personal network. Some of the advice that you can get can be so powerful. On a personal level, any time that I ask my community for advice, it never ceases to blow me away!
10. Advisory board. One of the best things that any business can do is to create a board of customers that you meet with on a regular basis like 4 times a year. You can have a dinner and then just ask their opinion of merchandise, the way you do business, etc. Just remember that you limit the term of service and that it is not a forever appointment.
11. Maximizing the relationship. I had originally on having the top 10 ways to maximize your customer, but I had to add an eleventh for two reasons. First, in times like this, businesses must give a little extra. In New Orleans, this concept is referred to as lagniappe. The second reason is because when I started surveying about maximizing the customer, one of the more interesting responses I got was when someone said that it is about maximizing the relationship. In other words, when you focus on maximizing the relationship, you will maximize the customer.

I have always believed that the definition of true intelligence is knowing what to say when you don’t know what to say. I use the term “maximizing the customer” without really thinking about the true impact this could have. I would love to get your impressions and how you maximize your customers. Some larger stores maximize their customer by having an employee anonymously follow a customer around the store to find the hot spots, places a customer stops to look at something.

Please share your techniques and ideas here and I will post the answers for all to see. I think we’re on to something here. I can’t wait to see your responses.