Warning: 80% of customers who switched suppliers last year were “satisfied” with their existing supplier at the time, according to a recent survey.

Great prices, quality, product features and service are key components of customer satisfaction. But salespeople are the driving force in generating customer loyalty.

Customers who felt their salespeople stood out from the pack (in a good way) were 10 to 15 times more likely to remain loyal.

When satisfaction doesn’t lead to loyalty

There are five key reasons why satisfied customers don’t become loyal customers. Share them with your salespeople.

1. Problems sour the relationship. Although initially satisfied with the purchase, customers become dissatisfied when unresolved problems develop later on in the relationship. And suspicion that there will always be problems can quickly sour the relationship and block any opportunity to move the customer into the loyal category.
2. Poor follow up. The same salesperson who spends months or even years pursuing a new customer fails to ensure that those orders are processed and fulfilled in a satisfactory manner.
3. Communication breakdown between customer and salesperson. Once the sale is made, some salespeople turn the servicing function over to others within their company. And as salespeople slowly lose touch with their customers, the chance of making future sales dwindles dramatically.
4. The original decision-maker leaves and is replaced by someone who has a personal relationship with a competitor.
5. Easy return. If the customer is still doing some business with a former supplier, it’s easy for him or her to return to that supplier for all of his or her needs if problems develop elsewhere.

Complacency undermines loyalty

It’s not a good idea to take a customer’s loyalty for granted. To avoid becoming complacent with your customers, try to stop thinking about “account maintenance” and start thinking about “account development.”

The key to customer loyalty is not just what you deliver — but how you deliver, service and support it. Simply meeting your customers’ expectations is not enough anymore. Customers want to know you care. Customers want you to make them feel important.

Developing loyal customers

Here are four tips to developing loyal customers:

1. Demonstrate a “we’re here to solve your problems” attitude. Customers want a positive response right away when they run into problems or have serious questions.
2. Come up with new ideas for your customers. You have expertise and knowledge, you know what’s happening in your industry and you know your customers’ needs. Now make a serious effort to share those thoughts.
3. Don’t be afraid to say, “We can’t do it.” This is not the same as saying, “We can’t help you.” It’s being honest. But don’t stop there. Try to help the customer get what he or she needs. It will build confidence and credibility for you and your company.
4. When you make a mistake, admit it right away. Don’t try to cover it up with excuses. Customers know what’s going on, and using excuses will cast doubt on your credibility. Once you admit the mistake, start talking about solving the problems.

Adapted from “Managing the Customer Experience,” by Joe Wheeler and Shaun Smith.

Tags: Attitude, communication, customer loyalty, customer satisfaction, loyalty, suppliers