Where's the Retention.com

Lois Geller
©2003 All Rights Reserved

1-800-FLOWERS. I always buy from them. I'm so loyal to Jim McCann I feel he's family. For years now, I've been buying plants and floral bouquets for friends and family and he sends me "thank you" notes. A year ago, he even sent me a note telling me to stop into his store on 3rd Avenue where there was a Christmas bouquet waiting for me. How sweet! But lately I haven't heard from him. So, even though I think of myself as a very loyal customer, when I went to buy cookies for my son's birthday, I didn't go to 1800FLOWERS.com (even though I know they carry cookies), and I started thinking that maybe I'd "look around." With a few swift clicks I found myself at mrsfields.com, cookiesbymissjackie.com, gifts.com and giftsforyou.com.

I still love Jim McCann. But, given his cost of finding a new customer, especially a new customer who is as good as I am, he needs me more then I need him. Jim, don't be a stranger. Keep in touch.

One thing I'm not seeing enough of online is efforts to get me to come back. I buy, I get the confirmation and then, most of the time, nothing else.

Everywhere I go online, someone's trying to get me to click here and go there. But, it seems that for sites I support, sites I actually buy from, I barely exist.

I feel like cupping my hands and shouting out, "Hey, I bought from you already!" That means, within the context of being your customer, I already like you and trust you. However, I can't read your "virtual mind." I might not realize you're having a great sale or a special promotion. Maybe since you know I love to cook, you could send me some great recipes. That would be nice. After all, I opted in, so don't ignore me now!

The whole point of the Internet is that it's interactive; it allows a business to engage in a two-way dialogue with customers and prospects.

And, the more you promote this dialogue, the more you get your customer talking to you, the more you talk to that customer, the more you'll create the single most important attribute for your success - customer loyalty. It's kind of like "real life"; the very process of talking makes us closer.

The reason it's so critical to "keep me coming back"-to nurture loyalty -- is that we are all just a click away from the competition.

Even a super-loyal customer like me can start to wander if I don't hear from my favorites for a while. It really is like friendship - I don't want to be the only one who's doing all the calling!

Keep it Personal
The power has shifted to the consumer. In traditional direct marketing, the marketer controls what the consumer receives. But online, the consumer controls the whole thing. That's why it's more important than ever to make every effort to keep the channels of communication flowing both ways.

Here's a good example of how a company can stay on top of the process. Driven by a 4-page print spread in one of the women's magazines, I checked out bluefly.com. I "opt in" because I want to know when the Gucci Hobo Bag is discounted, if ever. I've never bought from bluefly.com but now "we're talking." They send me some information on their "first ever" sale. Gee, thanks. They even have a "mycatalog" option where I complete a questionnaire and they deliver a personalized, up-to-the minute catalog every time I log on: my size, my favorite designers. The abundance of everything that I may want, in my size, with none of the distraction of products that don't interest me. Who would have thought that 1-to-1 marketing would pop out of the virtual page in the form of a hot pink cashmere twin set?

This is a perfect example of a company working to develop loyalty by realigning processes around customer needs. By using information based on prior purchases or a survey, a company can adjust the site to guide each buyer in the direction of selections that are most likely to appeal to that individual. That's what Amazon.com has become famous for.

Another way that companies can strengthen loyalty with customers online is through customized correspondence, e-mail that actually has content which reflects a particular individual's profile. For example, let's say I visit a site that sells vitamins and I opt in to receive additional information. If they ask me to respond to a few questions (like my sex, age, etc.) they can customize e-mails to each visitor's profile. In terms of execution, maybe everyone would get an article highlighting the latest findings on Vitamin C; only women over 35 would get the summary of the benefits of soy products; parents would get information about how to reduce the dangers of pesticide for young children. The result is that "opt ins" would receive the information that is most likely to be valuable to them.

Under the topic of "keeping it personal" I must also add that Internet companies need to "keep it human." Think about it. When we look at a brochure, our eyes go to the photographs of people. People bond with people not companies. In this techno-driven age, companies that are successful in communicating authentically, communicating like real people…will have a distinct advantage going forward.

Many of the secrets to succeeding online are the same as in print. Start by getting to know your prospects and customers and let them get to know you. Pay careful attention to what they say and do. Listen to them. Give them information that meets their needs.

Points, Points Everywhere
If we're talking loyalty - we really need to mention formal loyalty programs and that means "points", "skymiles" " or my personal favorite "green stamps." The fact is that a lot of people like points with a "perceived" value. I know it's getting big online, the whole idea of getting points "for what you normally do." In my own mind, I just don't really buy this notion that points build loyalty. For me, they start off great and then one second later they're an entitlement and I'm complaining how it's not fair that my miles aren't redeemable on such-and-such a date. But there are those who really love them. Points junkies might think, "He who dies with the most points, wins," but the programs take time, money and commitment. If you're not prepared to stay in for the long-term, don't go there.

Make Sure It Works
A critical but often overlooked component in establishing loyalty online is that your systems have to work flawlessly. It is imperative that sites, call centers, delivery systems - anything that delivers product or the marketing message - is routinely reviewed to be certain it is functioning properly and consumer-friendly.

Not all Customers Are Created Equal
With our newest focus, my agency is working with clients on developing executable strategies and processes to keep customers coming back. We focus on identifying ways to treat customers in tiers and then treat each group uniquely. Let's face it, that's what happens in regular brick and mortar retail stores. In a traditional business setting, people who make frequent purchases are usually treated differently than one-time-only customers. It might just be that the salespeople remember those they see more frequently and make an "extra" effort. Of course, customers enjoy being remembered by the people who serve them, and knowing that the company appreciates their business and treats them as "special" can generate loyalty, too.

You can't trick folks into coming back. There are no short cuts. Treat them right and give them what they want.

If you really stop to think about it, Jim McCann's not in the flower business, bluefly.com's not in the clothing business, pets.com isn't in the pet supply business, and I'm not in the direct mail business. We're all in the loyalty business. Our mission is simply to get and keep customers, so go forth and do that!
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Lois Geller, president of Mason & Geller Direct Marketing, is the author of RESPONSE! The Complete Guide to Profitable Direct Marketing.

Category: Customer Care
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