Have you made the Loyalty Leap yet? Read The Loyalty Leap by Bryan Pearson, the #1 pick on our Summer 2012 Reading List and learn how you can turn customer information into customer intimacy, building strong relationships with your customer and ultimately driving customer loyalty.

No matter where your summer plans will take you, don’t leave the house without the five must-reads on the VIPdesk Summer 2012 Reading List in your beach-bag (or on your Kindle).

Must-read #2: Harvard Business Review on Increasing Customer Loyalty, an anthology of previously-published HBR articles that will help readers learn the best ways to develop loyal advocates, increase customer recommendations, boost customer satisfaction through employee satisfaction, focus on profitable customers and more.

Must-read #3: Mobilized Marketing: How to Drive Sales, Engagement, and Loyalty Through Mobile Devices provides insights from industry visionaries and mobile pioneers alike, revealing proven strategies and tactics to increase customer loyalty and profitability via their mobile device.

Must-read #4: Readers of Micah Solomon’s High-Tech, High-Touch Customer Service: Inspire Timeless Loyalty in the Demanding New World of Social Commerce will discover how wildly successful customer service initiatives can turn casual customers into fervent supporters. Lear the six major customer trends (and what they mean for your business), eight unbreakable rules for social media customer service and more.

Must-read #5: Gamification is revolutionizing the web and mobile apps, as well as providing a new way to create extraordinary customer engagement. Read Game-Based Marketing: Inspire Customer Loyalty Through Rewards, Challenges, and Contests to learn how innovators are leveraging points, levels, badges and more to lower customer acquisition costs, increase engagement and build sustainable, viral communities.

I love group buying sites.  Whether it is Groupon, Living Social, or local fave Specialicious, it doesn’t matter.  I love a good deal (and, according to my husband, I love buying crap I would never dream of spending money on were it sold at regular price).  I have purchased haircuts, car detailing, carpet cleaning, mini golf, dry cleaning, tattoo removal, clothes, frozen yogurt, dinners out, house painting, yoga classes, garden supplies, a photo shoot and more.

And, as a marketer, when I get a chance to speak with the business owner who chose to market their business via a group buying site I often want to find out their impression of the process.  Do they like working one group buying site over another? Do they get a lot of business? Is it too much business to handle?  Do they make enough money overall to make it worth the initial hit from selling their product at almost always 50% off?  And, the most important question, do they get repeat business?

As it has been a few years since I started pestering entrepreneurs about their experiences with group buying sites, I have heard many stories about the back-end side of the process.  And to be honest, they are quite often the same and sometimes sound like a rendition of ones experience doing business with the mob (which site most often elicits that response will be kept to myself).  However the one answer that varies almost every time I ask it is this:  Do you get repeat business out of customers who find you via one of these sites?

The general consensus as to whether group buying sites promote customer loyalty seems to be that there is no general consensus.  Some hair salons see a customer once and then never again.  Some restaurants and boutiques end up with customers for life.  However the most interesting antecdote that I have been privy to came from the owner of a local tattoo removal studio.

For background, I have a tattoo I have wanted to get removed since shortly after I got the tattoo, but was just too chicken to do anything about it.  However a Groupon special  for a local tattoo removal studio was just the impetus I needed to finally get something done about the poor choice I made many years ago involving a heart and my ankle.

The owner of the studio, Ken, was great.  He realized that I was super duper nervous (or maybe he is just used to his first-time clients being extremely on edge) and engaged me in conversation to put me at ease.  I asked him my usual questions about this experience with the group buying process, and he told me that he has seen many customers who are “chasing the deal”.  Tattoo removal takes more than one session—usually at least 4 sessions.  And apparently there are customers who find a coupon, get one session with the issuer of said coupon, then wait for another coupon from another studio, and repeat.

I am assuming that this isn’t a trend limited just to this niche market—is “chasing the deal” really becoming that popular?  Is there really such a large subset of customers who care only about a really good deal that they overlook all other aspects of a buying experience that promote customer loyalty?  What do you think?

In today’s economy, we hear a lot of talk about sales, coupons, discounts etc. which is why most companies assume that all customers are highly price sensitive. This is simply not true. I discovered this by reading a recent article by Arthur Middleton Hughes, “Why Customers Leave and What You Can Do About It”

In the article, Hughes discusses the two types of customers: transaction buyers and relationship buyers. Transaction buyers typically have no loyalty, whereas relationship buyers (if treated properly) will stay with you for a lifetime.  Additionally, he outlines four reasons why customers leave and five ways to keep your most valued customers.

I only differ in opinion slightly, as I consider myself both, as I like to get the biggest bang for my buck in a lot of instances; however, I do agree that there are several companies with which I have a strong relationship. With the companies that I am truly loyal to – price is not a factor, as these companies have made me feel special in many ways and because of that have earned my loyalty.

What type of customer are you?

“Words – so innocent and powerless as they are, as standing in a dictionary, how potent for good and evil they become in the hands of one who knows how to combine them.”  ~ Nathaniel Hawthorne

Social Media, as the name implies, involves person-to-person or group-to-group communications that use a wide variety of technological mediums.  It can be delivered or accessed online through blogs, instant messages, social networking sites, email, websites, webinars, live chats, and any place where you can leave a comment, thought, or opinion.  It is also available in growing popularity via mobile phones and smart phones which offer text messaging, video messaging, online internet surfing, and mobile connections to Facebook, Twitter, LinkedIn, and many more.

Social Media has done a lot to bring our planet closer together and we are connected like never before, able to interact with people all around the world anywhere, anytime.  But Social Media is also a bubble-like environment, insulating us from having to deal regularly with other people in person or via phone.   Without the benefit of vocal tonality that only phone and in-person conversations can provide, customers may not accurately hear the enthusiasm in our response or feel calmed by our knowledgeable, professional approach.  And without the verbal cues that our faces and body language provide, how do we serve our customers effectively?

Fortunately, savvy businesses have already begun to rewrite the book on virtual customer service, which requires a deep understanding of Social Media’s unique language and communication requirements.  In many ways, the language of Social Media is similar to that which the best upscale marketers use to reach their target audiences – analytical, thoughtful, focused, and intentional.  Hence, Social Media communications demand more in the way of expressive words, punctuation, and absolutely impeccable skills in spelling, sentence structure, capitalization, and grammar.  Social Media practitioners must also possess considerable foresight to grasp the immense power and reach of a poorly written post, text, chat, or email and have wordsmithing proficiency that is second to none.

Facebook/Twitter – These communications aren’t just between the customer and the representative; they’re from the company to the world.  That ups the ante significantly with regard to word choice and how the message will be received and interpreted.   As we have seen many time, the world at large takes a great interest in how companies respond to challenging posts, so for that reason, a good deal of forethought is required when responding to posts and tweets, especially when dealing with upset or critical customers.  Consequently, this is not a job for those who cannot see the forest for the trees.  It takes a strong writer with exceptional interpersonal skills to succinctly respond to every post with tact, warmth, intelligence, and professionalism, as well as insight, hindsight, and foresight.

Chat/Instant Message – Instant access to real-time service is a huge draw for customers, making chat a particularly valuable tool for more and more companies, especially retailers.  Accordingly, the representatives who chat with individual customers must be as well versed in the written word as they with the spoken word (perhaps even more so).  Poor grammar and language skills do not make for a quality chat experience, so great care has to be given in the representative selection process.   In addition to the above, the best chat reps are engaging, experienced, highly responsive, empathetic, interested, respectful, professional, and not overly casual in their conversation.

Email – With today’s focus being on managing high volumes with low handle times, it is easy for contact centers to forget that email, like letter writing, is an art form that demands attention.  It takes only a few seconds for a customer to read through an email and make a quick (and probably very accurate) assessment about the writer and the company.  A well written, properly punctuated, and grammatically sound email tells the customer that care was taken with the response and that communication skills are a high priority with the company.  Poorly written missives, on the other hand, send a message that very little thought and attention was given to the customer and his or her situation.

The biggest mistake an organization can make is assuming that everyone who is proficient on the phone is equally proficient in writing, and vice versa.  Quite simply, the results can be disastrous, not to mention embarrassing.  Learning the language of Social Media involves a focused approach to the process of quality writing.  To that end, some companies have integrated business writing courses into their core training curriculums to produce as many good writers as possible for their customer service operations.  Others have created assessments to help identify those on their teams with exceptional phone skills and those with stellar writing skills.  Still others have established employment screening tools that assess the writing strengths of prospective team members from the moment of application.

No matter how you slice it, Social Media is here to stay and that is a very good thing for those of us who choose to be on the cutting edge of service delivery.  It keeps us relevant, makes us better at what we do, and like anything worth doing, it’s worth doing well.

“The difference between the almost right word and the right word is really a large matter – it’s the difference between the lightning bug and the lightning.” ~ Mark Twain

Experiential marketing allows customers to engage and interact with brands, products, and services in sensory ways that provide lasting impressions. Determining what type of experiences will work with your company is key.

Recently I stumbled across an article by Jacob Braude which was featured in Fast Company Magazine, “Experience is the Next Frontier of Marketing”. In the article Jacob discusses the five major types of experiences that form the basic building blocks of the experiential code; sensations, actions, space, situations and impressions, all of which are equally as important in determining how you will encourage your customers to interact with your brand, product or service.

VIPdesk is a leader in providing experiences; everything from our highly trained concierges, who provide service beyond our customers’ expectations to our experiential programs which provide experiential rewards to many of our clients’ best customers. We know first-hand that companies can gain a competitive edge by furnishing the best experiences; so deciphering that code is key.

Related Content:

Featured Webinar: Experiential Rewards: Rewarding Customer Loyalty One Unforgettable Experience at a Time

This week is Pet Appreciation Week , a time I believe should be not only for pet owners to appreciate their pets, but for the pet industry to appreciate the customers who have taken what was once a niche industry and made it a powerhouse:

• The  2011-2012 APPA National Pet Owners Survey showed that 62% of U.S. households now own a pet—which equates to 72.9 million homes.
• According to some estimates, more than $50 billion dollars are spent by consumers in the US alone related to pets.
• There are 8,800 pet and pet supply stores in United States alone, according to the latest Research and Markets report
• The combined pet retail industry is responsible for annual revenue of $12 billion

This industry has always been focused on service: in a recent article, Pet Supermarket’s CEO, stated that the success of her pet stores was due to a continued focus on the pet owner and providing personal service and education. Another pet retailer, Petland, promises its customers personal service in a fun, positive pet focused environment: even referring to the company’s sales team members as Pet Counselors.

While a majority of the pet retail industry is pet food and supplies, pet care services are a growing market segment, which is responsible for about 5% of the industry’s overall revenue.  I recently had a chance to learn more about the pet care services segment of this industry at the 2012 CVC conference, held in in Washington, D.C.

Before I even arrived at the conference, I gained some unexpected insight as I traveled by water taxi from VIPdesk’s Headquarters in the Old Town section of Alexandria, Virginia to the Gaylord National Hotel & Convention Center where the conference was being held.   As background, Alexandria, Virginia is right across the Potomac River from Washington, D.C., which is not only an international destination for tourists and business travelers alike, but is also famous for its historic landmarks.

As the city is a relatively small size in comparison to the amount of international recognition (and thus the number of visitors we receive), oftentimes there is a “high demand” attitude shown in the local travel and tourism industry.  However I learned that the Gaylord National Hotel & Convention Center, which is fairly new to the area, does not show that attitude at all.  As a matter of fact, Gaylord National prides itself on its flawless customer service.  From the hotel’s 2,000 STARs (employees committed to the customer service and meeting diverse needs of every guest) to the public Expectation of Excellence, to the “Consider it Done” button on every phone in the hotel.

Given that the venue the conference was being held in is known throughout the meetings industry for its superior  service, it was quite fitting to learn from most of the conference exhibitors how much they value personal service and view it to be one of the main differentiators from their competition:

• A veterinary office architect discussed a tailored, consultative approach in designing a clinic which is unique not only for a specific area, location and budget, but also tailored to the personality of the veterinarian and his/her choice of equipment.
• The recently elected President of The American Association of Feline Practitioners believes that success of her association is in providing personal support to veterinarians who seek knowledge and best practices in addition to a close knit network of professionals with highest practice standards.
• An artist who creates custom stethoscopes for veterinarians makes unique designs and bringing a personalized approach to a routine and otherwise mundane instrument.

One person I spoke with, a representative of a pet insurance company, said something that I thought was very insightful, and summed up what I thought to be the view of everyone that I met:

“Our main difference is a personal approach we take to each pet owner in understanding their needs and responding to it with best in calls service, be it at the time of purchase or during claim reimbursement.  Personal service is our key differentiator”.

We recently hosted a webinar, along with Banyan Branch ”Engaging and Retaining Customers through Social Media and Mobile-Enabled Loyalty Programs“. Below is the press release which outlines the poll results from the webinar which included over three hundred mid-to-high level managers and executives from many of the world’s leading brands. We recommend that you download the webinar to learn how brands can strategically incorporate social media and mobile applications into their loyalty programs.

Alexandria, VA – April 31, 2012—Over half of loyalty programs either have a social media or mobile communication-enabled component currently in place or in development, according to research recently conducted by VIPdesk and Banyan Branch.

Other key findings include:

• 27% of loyalty program members prefer to utilize a mobile device to access loyalty program features
• 32% of loyalty programs reward members with points or other currency for participating in social media and/or online discussions about their brand
• While only 17% of loyalty programs offer members a mobile application to use when redeeming rewards, another 30% have a mobile app currently in development: meaning that 47% of loyalty programs have a mobile app either in place now or will soon

This survey was conducted during a recent webinar presented by VIPdesk and Banyan Branch titled “Engaging and Retaining Customers through Social Media and Mobile-Enabled Loyalty Programs“.  This webinar, produced by Loyalty 360, reviewed how brands can strategically incorporate social media and mobile applications into their loyalty programs in a manner that resonates with their customers and gets results.

“These research findings are proof positive that the advent and growth of mobile communication and social media is significantly influencing the way consumers interact with the brands with which they do business,” said Mark Robeson, Senior Vice President, Sales & Marketing for VIPdesk.

“When properly motivated and encouraged, brands’ most loyal customers can become their most active advocates. This path of integrating social media with loyalty programs and rewards will ultimately allow brands to grow their online conversation and provide deep and interesting content created by those who know them best,” says Dave Hanley, Founder & Principal with Banyan Branch.

For more information on the findings of this survey, contact VIPdesk Public Relations at 703-837-3507 or press@vipdesk.com. A recording of Engaging and Retaining Customers through Social Media and Mobile-Enabled Loyalty Programs can be accessed for playback at http://bit.ly/I4ugOb.

The VIPdesk Webinar Series is designed to educate clients, prospects, and members of the customer service community about issues addressing our industry. We collaborate with industry experts to share timely content related to customer care and loyalty with anyone interested in learning more about delivering memorable brand experiences.  Sign up to learn more about the VIPdesk Webinar Series at http://bit.ly/JcSab0.

About Banyan Branch

Banyan Branch, based in Seattle, WA, is a full-service social media agency that provides end-to-end marketing services including strategy, creative, execution and analytics. With a holistic approach that integrates Strategy, Social Media Creative, Engagement and Research & Analytics, Banyan Branch delivers social media programs unmatched by smaller agencies, while providing more personalized service and quicker response than large-scale digital firms. Dozens of the world’s leading brands, including Amazon, Clarisonic, FOX, Gilt Groupe, Microsoft, Porsche, Parallels and T-Mobile have partnered with Banyan Branch to implement a wide variety of social media campaigns. Any company ready to connect with its customers where they live and breathe, can contact Banyan Branch via www.BanyanBranch.com.

About VIPdesk

For over a decade, the world’s most prominent companies have relied on VIPdesk to provide highly personalized concierge and customer loyalty solutions to engage and service their customers.  VIPdesk’s full suite of service offerings, supported by a team of over 1,200 global professionals, includes concierge and customer loyalty solutions, experiential offerings and assistance services.  To learn more about how VIPdesk provides impeccable service, visit www.vipdesk.com.

To have a dog, or not to have a dog?  That is the question.

Paraphrasing Shakespeare is much easier than making a decision to become a pet owner, at least in my household.

Growing up I always had a plethora of accidental pets: a homeless dog I stumbled upon, a cat who made his domicile in the elevator cage of our apartment building, a dove who broke its wing and landed on my balcony, even a white rat whose story I cannot recall.  These are all happy memories: pet ownership was an adventure and every day there was a new world to explore.

However, now that I have been in the realm of adult responsibility for longer than I lived a careless childhood, I understand why my parents weren’t always as keen as I was on adding another animal to the household.  Which is why the question of “to have or not to have a pet” is a constant in our household, but one which we can never definitively answer.

We were recently discussing the issue yet again, weighing the relative merits of pet ownership vs. pet freedom: On the plus side, pets help humans relax, de-stress, lower their blood pressure, and stay healthier overall (according to a study from the University of Miami).  However on the negative side…well, the reasons are many.   As we were weighing the merits of pet vs. no pet, one argument was made that pet loyalty is the one certain thing that we can count on in this very uncertain world: no matter what happens, you can always come home to a loyal, devoted friend.

However, is this true?  Is the loyalty of a pet *really* permanent? Or is it determined by the animal in the same way that a consumer determines their own brand loyalty?  Just because you give a dog a home, food, and a few belly rubs every day, does this mean that you are guaranteed a loyal companion for life?  What if someone moves in next door who offers Fido better food, more belly rubs, and two daily walks vs. your one walk?  Are you ensured the undying love of your pet when a better offer comes along?

Or, are animals like consumers?  As consumers, we often determine brand loyalty by recognition, appreciation, the level of service we receive, and last but not least, the actual good or service being sold to us.  If given a choice, will animals always remain loyal to their owner, or will they comparison shop and make a decision based on their own personal needs and priorities?

And, taking this one step further, if there were an open market where pets could choose their owners, would that make pet owners step up their efforts?  I can guarantee that every single pet owner I know (and there are many at VIPdesk) would absolutely step up their efforts in order to retain the loyalty of Fido or Fluffy, due to the importance of Fido or Fluffy in their lives.  Or, at the very least, because it is hard to find a pet that fits your lifestyle (not to mention the subsequent toilet training, etc.).

Which begs the question as to why brands don’t treat their loyal customers the way their loyal customers in turn treat their pets?

What do you think?

Customers love rewards. Rewards can make customers loyal to your brand and help you to gain new customers. If the rewards are lucrative enough, they can even coax customers from your competitor(s).

So, now that you have customers excited to start spending with the anticipation of redeeming those coveted rewards, it’s show time. From the moment that customer begins his or her relationship with your company, every step is critical. It is important to put yourself in your customers’ shoes and go through each step to ensure that the process is seamless. Some areas to consider are:

•  Are the service professionals courteous and helpful?
• Are the reward points easily attainable?
• What about the redemption process?
• Are the expiration dates, terms and conditions fair?

The end result is also critical to the process. If the redemption is for a specific hotel, airline or merchant – are they also living up to the customer’s expectations?

Remember, each step is a reflection of your company, even after redemption. I highly recommend you read “Are Your Rewards Cultivating Your Customers or Driving Them Away” to learn more about how you can ensure your loyalty and rewards program is a success by ensuring “WOW” customer experiences.

By nature, people want to help others.  Doing something meaningful for someone else is an endorphin-releaser that makes us feel good.  It also starts a chain reaction.  When someone does something nice for us, we want to perpetuate that good deed and do something nice for others.

One of my favorite commercials that so beautifully illustrates this principal is by Liberty Mutual.  It shows how one small, simple act of kindness can spark other acts of kindness and demonstrates just how influential these gestures are in terms of their meaning and reach.  In fact, this is such a big concept that there are now university programs and leadership organizations dedicated to the science of gratitude and its positive impact on communities and businesses.

Whether you call it doing the right thing or paying it forward, the concept of perpetuating random acts of kindness is incredibly powerful when it comes to engaging team members and having that positive energy spill over to the customers they serve.  It is also something that managers struggle with when it comes to motivating and retaining their teams.

Truth be told, many of us tend to overthink our motivational efforts.  We look for grand programs or complex initiatives that will spur teams to greater productivity and improved customer satisfaction when simple and sustained acts of recognition and appreciation (random acts of kindness) may be all that is needed to make team members feel valued and significant.

Don’t Underestimate the Power of a Smile and a Kind Word.

It is highly depressing to work in a place where no one smiles and no one is appreciated.  It also hampers productivity and is reflected in customer satisfaction scores.  Companies have an obligation to ensure that the mood of the team is a positive one because that mood directly impacts the customer experience.  This means that managers need to lead by example and be a positive force in their departments, actively demonstrating the kind of behavior that they want to see from their teams.

Employ the Golden Rule. 

We all know how we want to be treated – with respect and courtesy – and that should be the case in every interaction between managers and team members.  People mirror the environment around them, so the manner in which managers treat team members is directly reflected in the way team members treat customers.  If customer experience scores are low, it might be worth it to take a step back and see if the management influence is a positive and respectful one.

Say Thank You. 

Being appreciated is a core need and recognizing good deeds by team members is essential for positive team building.  A simple yet heartfelt “thank you” goes a long way to making team members feel appreciated and valued, whether it is delivered verbally or via card or email.  Be sure not to diminish the thank you by following it with a critique of their performance in other areas, though (i.e. “You did a great job here, but…”).  Let the “thank you” stand on its own for maximum power.

Praise in Public. 

The old adage of praising in public and criticizing in private is one of the most reverential behaviors a manager can emulate.  Share good works loudly and proudly with the team but keep performance issues strictly between the manager and the individual team member.

Be a Positive Force. 

Never underestimate a manager’s influence and the power that the trickle down effect has on a team.  A positive attitude and demeanor will be felt just as strongly as a negative, demeaning approach but team members and their customers will benefit most from the former.

We all have the power to positively influence our teams and our customers for the greater good.  Check out the following articles for additional information about the science of leadership and what it can mean to you and your organization.

How to Tap the Power of ‘Thank You’ | Entrepreneur.com http://bit.ly/JyGHHm

Career Coach: The power of ‘thank you’ http://wapo.st/Ico1sr

What Is Management Leadership’s Role in Motivating Employees? | Small Business – Chron.com http://bit.ly/InhQVI

The New Science of Leadership: An Interview with Margaret Wheatley http://bit.ly/JsmLqW

The Three Fundamentals Of Effective Leadership – Forbes.com http://onforb.es/I6ElAA

13 Characteristics Of Bad Bosses – Careers Articles http://aol.it/Icon2u