Everyone loves a good deal, even me! In this economy when businesses are struggling to get and keep loyal customers, a Groupon campaign can help you drive customer traffic. But it’s your goal as a small business owner to create loyal customers from these visitors.

Groupon offers subscribers a deal-of-the-day where a local business features services or products at heavily reduced discounts anywhere from 50-90% off. The catch is that the business sets a minimum number of purchases before the deal is “on” for everyone. With over 10 million subscribers at last count, Groupon is a powerful marketing tool sought out by both the biggest and smallest of business owners. From what I hear from local businesses, there is a waiting list to feature your business.

That hasn’t been a problem for most businesses, and in fact, some have been overwhelmed with the response rate. Groupon launched its first national deal this past Thursday with GAP to offer $50 worth of apparel and accessories for $25 and about 450,000 Groupons were sold.

Sounds incredible right? But what about the local small business that creates these deals. If they are barely surviving and think that a Groupon campaign is the answer, they may be sadly mistaken. Here are some things to considering using these types of services:

1) Cap the number of deals you are willing to sell. Decide first how much in discounts your business can afford to accept based on your margins.

2) Prepare your store. Decide who will be in charge of handling these coupon customers when they have questions about the program. Make sure that your front liners gladly accept the discounts.

3) Prepare your staff. Let them know you are participating in this type of marketing and that you have their buy-in. This is the time to make your best first impression with these customers.

4) Have a Retention Plan in place. What good is it if you have this rush of business but you aren’t retaining these customers? Many of them are simply looking for the deal of the day and never plan to return. Encourage them to join your mailing lists, social media sites, text messaging campaigns, etc., and give them a compelling reason to return – one being your outstanding customer experience.

We’ve just begun to see more and more group buying websites pop up due to Groupon’s popularity. Sites like Buywithme.com and Livingsocial.com are other examples. Make sure that your customer loyalty programs capture these customers so that you can grow your repeat business. Otherwise, you could be missing out on the full benefit of increased customer traffic.

Norma, The Loyalty Lady,is an innovative Customer Experience Strategist, Business Coach, Blogger and Speaker. She works with small service businesses to help them build an unprecedented customer experience that will drive customer loyalty and retention. Contact her at Norma@CaptivatedCustomers.com or by phone at (480) 694-6940.

More from Captivated Customers

• Top 10 Customer Service Tips for 2010
• The Loyalty Lady Drives Customer Retention
• Customer Rage is on the Rise

Captivated Customers Recommends

• Why Loyalty and Mobile Marketing is the Future for Retail  (Danny Brown)
• The Direct Connection to Stability  (Sustainable Revenues)
• What Is A Blog Roll?  (The Arkayne Blog)

Over and over, I see business owners them spend most of their marketing dollars attracting new customers.  All the marketing in the world won’t grow your business if your customer experience is poor. Creating an extraordinary customer experience to maximize the effectiveness of our marketing campaigns should be our focus.

Did you know that I have spent 20+ years in sales and service in a variety of industries including education, real estate, and cosmetic? I have even sold Girl Scout Cookies and loved it, so I know sales and service are in my DNA. I have my dad to thank, a former hardware salesman, because he helped me understand how to treat customers and build strong relationships with them.

About 9 months ago, I began my research on customer experience strategies reading hundreds of articles, various blogs, and multiple books and talking to customer experience experts.  I combined my research, best practices, and my expertise in outlining strategies that small business owners could employ to develop an outstanding customer experience.  Watch my video about today’s customer experience:

I looked at all areas of a business that affect its ability to develop that extraordinary customer experience. There was a need for a customer experience plan, a customer-centric culture, customer loyalty tactics, and an employee staffing and development strategy.  I identified 6 customer experience strategies which I call the Customer S.M.A.R.T.S. System™.  Based on this System, I created the Program called Turn Your Customer Experience into Cash with the Customer S.M.A.R.T.S. System™. The Program includes a 5-Hour CD Set and Program Guide that walks a business through the process from start to finish.

After feedback and improvements to the Program, I am re-launching my Program and wanted you to know about it. I am providing small business owners several ways to engage with the Program. Some business owners will want one-on-one consulting.  Some will want to participate in a 7-week teleclass series so that they can walk through each strategy, get feedback from me and their peers, and stay accountable.  And some will simply want the Program so that they can do it themselves. So I provide all three options.

If you are interested in developing an outstanding customer experience, visit my website at TurnServiceIntoCash.com.  As a special offer to my readers, I want to offer a $50 discount off the Program through September 1, 2010.  Simply use “BLG50” for the coupon code to receive my “thank you” discount.  Go to TurnServiceIntoCash.com now and claim your Program.  You can also reach me at (480) 694-6940 or email Norma if you have any questions.  Log into Twitter and Facebook to share this blog with your friends by clicking on the links below!

More from Captivated Customers

• Top 10 Customer Service Tips for 2010
• The Loyalty Lady Drives Customer Retention
• 3 Customer Service Myths to Forget

Captivated Customers Recommends

• 7 Days to Turn Your Blog Into a Social Media Hub Coming Next Week  (Danny Brown)
• How to do Customer Service Right  (Chris Conrey)
• Defining Your Hub is Part One of 7 Days to Turn Your Blog Into a Social Media Hub  (Danny Brown)

1)      Customer Service

2)      Culture and Core Values

3)      Employee Training and Development

There were several surprises for me in reading this book.  My perception of Zappos.com was that they started the business with a customer-service focus, a customer-centric culture, and the best employee training from the get-go.  But I was wrong.  It evolved as they evolved.

For example, one thing that surprised me is that even though they began the company in 1999, it wasn’t until 2003 when they decided to make customer service the focus of the company.  It came about as a result of needing to cut expenses to survive. During that time, they decided to cut their marketing expenses and refocus their efforts on trying to get existing customers to purchase again and more frequently, which resulted in developing a better customer experience.

Another surprise about Zappos.com is that their focus on their culture and core values wasn’t fully established until 2005. The focus began when they moved their call center to Las Vegas.  It’s through this move that they realized that their culture was their number one priority, even more than customer service.  They believed if they got their culture right, building their brand around customer service would happen naturally.

The last but not least surprise is that most of Zappos.com’s efforts on customer service and the customer experience actually happen after they’ve made the sale.  Surprise upgrades to overnight shipping, quick fulfillment due to a 24/7 warehouse operations, and call center employees who focus on the personal connection instead of call handle times are examples of how their service goes beyond the sale. Their goal is to create more and more positive emotional associations with their brand through every interaction with the customer.

Get this book.  Whether you are a mom & pop business or a mega business, you will learn how you too can create a company that is fueled by the customer experience for both your internal and external customers.

Norma, The Loyalty Lady,is an innovative Customer Experience Strategist, Business Coach, Blogger and Speaker. She works with small service businesses to help them build an unprecedented customer experience that will drive customer loyalty and retention. Contact her at Norma@CaptivatedCustomers.com or by phone at (480) 694-6940.

More from Captivated Customers

• Top 10 Customer Service Tips for 2010
• 3 Customer Service Myths to Forget
• The Loyalty Lady Drives Customer Retention

Captivated Customers Recommends

• What You Need to Know about SEO (On Page SEO – Part 1 of 3) – Fueled Friday  (Anthony Kirlew)
• What You Need to Know About SEO (Off Page SEO – Part 2 of 3) Fueled Friday  (Anthony Kirlew)
• How to do Customer Service Right  (Chris Conrey)

This name makes sense because I help small business owners improve customer retention by improving customer engagement.  As The Loyalty Lady, I do that by uncovering opportunities in your business to provide more value to customers and help you build customer relationships resulting in customer retention.

Customer Loyalty is complicated. But to simplify it, I’ve developed a simple equation that describes the components of Customer Loyalty. The equation goes like this:

Magic + Relationships + Value = Customer Loyalty

Magic is about creating an unanticipated, extraordinary experience that customers won’t forget. It brings to mind the experience my son just had in purchasing his Iphone at the Apple Store. First, Apple allowed people to pre-purchase the Phones so that when the pre-purchasers arrived to pick up their phones from the store, they had priority treatment with their own line. Apple also provided those who waited in line food, a drink and an umbrella to shield them from the Arizona Sun in June. It’s those special touches that help develop that loyalty.

Relationships drive customer loyalty as well. When people feel connected to you and your business, loyalty is right behind. People no longer want to be treated like sheople. Customers want to be noticed, appreciated and valued. Building these relationships takes time and are built with each experience a customer has with your business. Look for opportunities to strengthen the relationships with your customers from the first time they do business with you and beyond.

Do you provide Value through your products and services? In an MSN poll, customers were asked “what is your number one customer service expectation?” The top answer was product knowledge (over friendliness and readily available staff). Customers today won’t put up with businesses that don’t support their needs and wants. Given that, we want to be sure that our front liners have the product knowledge they need to provide value to their customers.

Customer retention and loyalty are the keys to your sustained growth. As your Loyalty Lady, I want to share with you innovative ways to drive loyalty and sales. Turn up the magic, build relationships and provide value to your customers and watch what happens. Wishing you all the success you can handle,

The Loyalty Lady

Norma Huibregtse

Norma is an innovative Customer Experience Strategist, Business Coach, Blogger and Speaker. Her goal is to inspire business owners to captivate their customers and turn them into raving fans so that their businesses can experience increased profits and more fun. Contact Norma at (480) 694-6940, by email at norma@captivatedcustomers.com or visit the website at CaptivatedCustomers.com

More from Captivated Customers

• Top 10 Customer Service Tips for 2010
• Customer Retention Builder – Need Customers for Life?
• Customer Rage is on the Rise

Captivated Customers Recommends

• Apple has lost the magic  (Tyler Hurst)
• Why Loyalty and Mobile Marketing is the Future for Retail  (Danny Brown)
• The Direct Connection to Stability  (Sustainable Revenues)

Couch Tomato Café, a family style restaurant, used text messaging to send out a special 7-day offer just for text subscribers. They tracked the response for this campaign and estimated that they received 70 extra orders which increased sales by $1,050.

Viking Cooking School began a text message marketing program to keep in contact with students, instructors and staff. They use this service to help keep classes filled. One recent text message to students allowed them to fill open class spots. The cost to them was less than $15 dollars and resulted in an additional $632 in revenue.

UAS Properties develops and renovates affordable housing. They use text messaging to manage and collect rent for about 800 units. UAS sends text messages to alert each household that is behind in rent payments and includes a number to call for the subscriber to make an automatic payment. Read the full story for these three examples on Eztexting.com.

As exciting as text message marketing sounds, we need to respect the subscribers who opt into the service. Here are some of the pitfalls facing business owners in using this mobile marketing tool.

1. Sending too many messages to customers causing them to opt out. I was working with a restaurant client who wanted to send a text 4 days out of the week to their list. Big mistake. Too much noise and subscribers will opt out left and right. Let your customers know how often they will receive messages from you and stick to it.

2. Using text message for general announcements. The messages should be a novelty. Your customers want to know that they are a select group and that they will receive special offers that others won’t. Use Facebook and email for general announcements and keep your text message campaign to drive business.

3. Not getting opt-in approval to text message your customers. Just as with email marketing, anti-spam rules require us to get subscriber opt-in. The last thing you want to do is take your database of customer cell phone numbers and blast out a message. Instead, send them an email, post a signup widget on your website, or provide this information at your place of business and invite them to join your text message service. As important as an opt-in, make sure that you have an opt-out message with each text you send. It lets customers know that if they don’t find the service valuable, it is easy to opt-out. Don’t worry. There are more customers on the horizon.

Mobile marketing can help even the smallest business owner communicate more effectively, drive sales, and develop customer loyalty and retention. Don’t wait to get started because the early adopters will win over their competition. Contact me today at (480) 694-6940 if you are interested in customizing a text message campaign for your business.

If you like this post, simply click on the Like Button below and share it with friends!

More from Captivated Customers

• Text Marketing Campaigns that Build Customer Loyalty
• Top 10 Customer Service Tips for 2010
• The Loyalty Lady Drives Customer Retention

Captivated Customers Recommends

• Why Loyalty and Mobile Marketing is the Future for Retail  (Danny Brown)
• How to do Customer Service Right  (Chris Conrey)
• 14 Free marketing tactics for recession  (LEADS Explorer)

1)      Introduction Video – Create a video that allows you to personalize your message about you and your company.  Let them see who you are as you tell them about your products and services.  Remember that people do business with people, not companies.

2)      How-To Videos – These videos tell your customers how you can get more out of your products and services.  For example, one of my carpet cleaning clients is creating a video about “How to Prepare for our Visit” that will explain to her customers how to prepare the carpet, which furniture to move, how long the appointment will take, etc. This video will be included in the appointment confirmation email she sends to customers.  Once an appointment is completed, another email will be sent that shares tips for after-care.

3)      Facilities Tour Video – To increase anticipation (or reduce anxiety) over a visit to a new service provider (such as a dentist, chiropractor, or veterinarian), allow your customers to see your facility before they arrive.  Let them know what it will be like when they walk in that front door, what they can expect to experience and how they will be treated.

4)      Event Videos – Rev up the excitement about an upcoming event that you are having with video.  Recently, I participated in a Social Media event that included video to market to potential participants.  It was an interview format and allowed the host to share the details about the event in a fun, engaging way to audience.

5)      Video Testimonials – We all know testimonials help us build credibility about ourselves, our products and our services. Taking it to video is even stronger.  Being able to see and hear a customer share their positive experience they had with you is invaluable to your business.  Guide your customers as they prepare a video testimonial.  Ask them to use the P.S.S. system which is to share the problem they had, the solution, and the savings in time, money, etc.

Post these videos on your website, social spaces such as Facebook, LinkedIn, and others.  Create a YouTube channel where your videos can be seen by others.  Through video, your customers will feel more in tune with your business and will help spread the word about their wonderful customer experience.

Tell us how you are using video marketing in your own business?

More from Captivated Customers

• Top 10 Customer Service Tips for 2010
• The Loyalty Lady Drives Customer Retention
• Customer Rage is on the Rise

Captivated Customers Recommends

• The Top Tools For Promoting Your Blog  (The Arkayne Blog)
• The Art of Video Blogging  (The Arkayne Blog)
• The Direct Connection to Stability  (Sustainable Revenues)

1) Being ignored by sales staff (hey, I’m over here!)
2) Staff that have little to no product knowledge
3) Not standing behind your products (do I really need to buy a warranty?)
4) Putting people on the phone, help line, etc. whose English is hard to understand
5) Offices that aren’t available during lunch time (dental, medical, what are you thinking?)
6) Long waits on the phone
7) When a sales person says “it’s not my department”
Lengthy phone trees (is there a live person anywhere?)
9) Putting a caller before a live person (answer the phone, put them on hold, and deal with me)
10) Having to repeat myself to multiple service representatives when I have a problem

Can you sympathize with any of them? Is your company guilty of any of them? These customer service mistakes can be costing you sales. Now keep in mind that only 4% of your customers will complain directly, 96% just go away and 91% WON’T COME BACK.

As a business owner, spend time out on the floor of your retail establishment or spend time listening to service calls or ask your staff about customer complaints and what they hear from customers. If you run a micro business, you aren’t off the hook. Some of these customer service mistakes apply to you too. Ask your customers what bugs them about your business.

There is no better time than now to improve your customer service experience. Need help, check out our services at http://captivatedcustomers.com. Fix it, and they will come.

More from Captivated Customers

• Top 10 Customer Service Tips for 2010
• 3 Customer Service Myths to Forget
• The Loyalty Lady Drives Customer Retention

Captivated Customers Recommends

• 10 Blog Traffic Tips  (Espreson)
• How to do Customer Service Right  (Chris Conrey)
• You are NOT Your Customer  (Chris Conrey)

Do you remember a commercial that featured a woman who just finished shopping, walks out of the store and yells to her husband “start the car, start the car”, because she thought they hadn’t charged her enough for the things she purchased?  What message does that send to the consumer?  In a roundabout way, it says that it’s okay to cheat.  What they wanted to convey is that their prices are so low, we can’t live without them. Call me crazy, but there are better ways to get the message out.

Here’s something else on my mind.  We’ve all gone to trade shows and conventions and have put our cards into drawings that promise something free.  Have you found that free isn’t really free after all?  I recently received a call from a company that said I had won $300 in free services.  But, I would have to come in and “talk” to a specialist before I booked my appointment.  So was it really free?  Not in my book.  I should be able to make an appointment and use my gift.  By the way, I never heard back from them.

This next example speaks again to dishonest customer engagement.  My online contact lenses provider often sends me emails to reorder my contact lenses.  One of the last emails they sent me reported that they had an overstock of my lenses and that they blamed it on someone in their company who had over ordered.  In the email, they specifically said they wouldn’t “name names”.  Wow!  They were willing to throw to someone in their company “under the bus” (or pretend to) so that they could sell products.  So I sent them an email asking them why they used this marketing tactic.  They kindly responded saying that it wasn’t what they meant.

I have seen more and more companies getting desperate and dishonest in their marketing.  I know times are tough but your customers deserve better.  If I were consulting with companies that do this, I would tell them to STOP, because it isn’t how customer engagement works.  We are smarter than you think and see right through these messages.  If you think I’m off base, let me know. If you need better ways to engage your customers, call me. 

Norma is an innovative Customer Experience Strategist, Business Coach, Blogger and Speaker. Her goal is to inspire business owners to captivate their customers and turn them into raving fans so that their businesses can experience increased profits and more fun. Contact Norma at (480) 694-6940, or visit the website at CaptivatedCustomers.com or email her at norma@captivatedcustomers.com

More from Captivated Customers

• The Loyalty Lady Drives Customer Retention
• Customer Retention Builder – Need Customers for Life?
• Text Marketing Campaigns that Build Customer Loyalty Part 2

Captivated Customers Recommends

• What I Learn From My Daughter  (Danny Brown)
• I wouldn’t read my blog.  (Brian Shaler)
• What I Miss About Twitter  (Brian Shaler)

The last time I was at my doctor’s office, I noticed a sign that sat on the counter next to the admissions clerk. It said something to the effect that “we will not tolerate abuse of our staff.” Hmmm, I thought to myself. Could they have been victims of customer rage? I want to give your front liners a tool that will make them more effective in dealing with a complaining customer.  I call it our STOP, DROP and POLL technique.

First, STOP what you are doing and give your customer your full attention. Actively listen to what they are saying to you. Empathize with them (even if you think they are wrong) and let them know you are there to help.

Second, DROP your defenses. It is a natural response to take it personally. Your complaining customer has a beef with your products or services, not you. Remaining calm and composed helps you stay in control of your own behavior.

And third, POLL by asking as many questions as it takes to get to the bottom of their issue. Personalize the conversation by asking for their name and give your name. Clarify your understanding of the problem by repeating the facts back to the customer.

When the facts are gathered, tell the complaining customer what you can do to solve their problem. If you are unable to help them right away, tell them what you will do next. Confirm that they are clear about your next step and what they can expect to happen. Follow through on your promise to get the issue resolved.

Using the STOP, DROP AND POLL technique can help keep a complaint from elevating to customer rage. Teach this easy and effective technique to your front liners. They will thank you for helping them be proactive rather than reactive when dealing with complaining customers.

Norma Huibregtse is an innovative Customer Experience Strategist, Business Coach, Blogger and Speaker. Her goal is to inspire business owners to captivate their customers and turn them into raving fans so that their businesses can experience increased profits and more fun. Contact her at norma@captivatedcustomers.com or visit her website at http://captivatedcustomers.com or call our office at (480) 694-6940.

More from Captivated Customers

• Top 10 Customer Service Tips for 2010
• The Loyalty Lady Drives Customer Retention
• Top 10 Customer Service Pet Peeves

Captivated Customers Recommends

• The Direct Connection to Stability  (Sustainable Revenues)
• Everything on the internet is free  (Tyler Hurst)
• The grass is always greener on the other side: not in sales  (LEADS Explorer)