The best tools in the world are only as good as their user. Similarly, loyalty programs are only as good as your employees make them. The best loyalty program in the world still requires staff buy-in to make it work. If a current program isn’t working, dealers should take a closer look at their culture and create strategies to develop a positive work environment and motivated employees. Here’s how to get started:

1) Find out what’s important to your employees.

The best way to do this is to conduct an anonymous survey. Not everyone is interested in great pay and benefits. Once basic needs are met, many people value things like recognition, advancement opportunities and training. Ask for suggestions.

2) Pay well.

Find out what your competition is paying and try to pay a little bit better. Give your employees opportunities for spiffs and perks, and put them in writing. Since benefits are important, offer the best you can afford. Here’s the thing: the best employees know they are good, and will always be looking for a place to work that includes good pay and benefits. Also, make sure your employees take their vacation days. Most people need time off to recharge so they don’t burn out.

3) Show your appreciation.

Thank and reward employees for a job well done. Gifts don’t have to be extravagant; it could be a pair of movie tickets or a free lunch once a week to the employee who has put in the most effort. Commend them with certificates or letters of thanks. Have an employee of the month and of the year. Remember their birthdays and give them a card.

4) Help them with goals.

Promote employees from within whenever possible, and help them identify a career path within your company. Most people don’t want to feel “stuck” in one position forever. Empower your employees to make decisions, set their own goals and then hold them accountable.

5) Make them feel like they’re part of a team.

A team can be the entire company, or departments within the company. Some friendly competition among teams can help motivate and boost energy levels. Make it clear how each person’s role contributes to the company’s goals, and therefore their goals.

What do you think makes a positive workplace? What makes you feel motivated and to go to work every day? Do you notice a direct correlation between happy employees and happy customers?

The best tools in the world are only as good as their user. Similarly, loyalty programs are only as good as your employees make them. The best loyalty program in the world still requires staff buy-in to make it work. If a current program isn’t working, dealers should take a closer look at their culture and create strategies to develop a positive work environment and motivated employees. Here’s how to get started:

1) Find out what’s important to your employees.

The best way to do this is to conduct an anonymous survey. Not everyone is interested in great pay and benefits. Once basic needs are met, many people value things like recognition, advancement opportunities and training. Ask for suggestions.

2) Pay well.

Find out what your competition is paying and try to pay a little bit better. Give your employees opportunities for spiffs and perks, and put them in writing. Since benefits are important, offer the best you can afford. Here’s the thing: the best employees know they are good, and will always be looking for a place to work that includes good pay and benefits. Also, make sure your employees take their vacation days. Most people need time off to recharge so they don’t burn out.

3) Show your appreciation.

Thank and reward employees for a job well done. Gifts don’t have to be extravagant; it could be a pair of movie tickets or a free lunch once a week to the employee who has put in the most effort. Commend them with certificates or letters of thanks. Have an employee of the month and of the year. Remember their birthdays and give them a card.

4) Help them with goals.

Promote employees from within whenever possible, and help them identify a career path within your company. Most people don’t want to feel “stuck” in one position forever. Empower your employees to make decisions, set their own goals and then hold them accountable.

5) Make them feel like they’re part of a team.

A team can be the entire company, or departments within the company. Some friendly competition among teams can help motivate and boost energy levels. Make it clear how each person’s role contributes to the company’s goals, and therefore their goals.

What do you think makes a positive workplace? What makes you feel motivated and to go to work every day? Do you notice a direct correlation between happy employees and happy customers?

A recent study by the Tempkin Group found that it takes an average of five clients giving positive referrals for your business in order to get one new client. Yet it takes only two disgruntled customers speaking negatively about your business for you to lose one customer.

You do the math...that means it’s twice as important to ensure that you don’t have unhappy customers than it is to maintain good relations with your happy customers. This doesn’t mean you shouldn’t focus on the latter—of course you should. But it also means that if you don’t have a system that empowers or motivates your employees to solve customer problems, you may be feeling the negative impact on your business.

Most people don’t set out to dislike or become a detractor for a business. The reason this happens is when a satisfied or neutral customer encounters a problem or an issue that isn’t resolved. At that point there is an immediate decline in loyalty. However, if the problem is handled well, the customer’s loyalty increases above his or her original loyalty level.

The biggest determining factor as to whether a customer becomes or remains loyal after a problem is whether that problem has been resolved. Unfortunately, many times employees believe that they are resolving a problem, when in fact they aren’t.

This happens more often than you might think. Employees jump to a solution for the customer; quote company policy back to the customer; or go for the easiest solution, which is often a discount. The end result is an unsolved problem and a frustrated customer.

To ensure that your customers feel like their problems are resolved in a satisfactory manner, be sure that every employee follows an established process for customer complaint resolution. These steps should include acknowledging the problem, taking down facts, taking ownership of the problem, ensuring the customer receives a resolution to the problem and following up to make sure they are happy with the resolution. If one or more employees don’t follow this process, make sure there are consequences so that next time they will be motivated to follow the process.

It only takes two detractors to undo all the hard work and effort you put into building a positive image that results in one new business referral. You may want to consider spending as much time training employees in customer complaint resolution as you do in coaching them how to get referrals.

A recent study by the Tempkin Group found that it takes an average of five clients giving positive referrals for your business in order to get one new client. Yet it takes only two disgruntled customers speaking negatively about your business for you to lose one customer.

You do the math...that means it’s twice as important to ensure that you don’t have unhappy customers than it is to maintain good relations with your happy customers. This doesn’t mean you shouldn’t focus on the latter—of course you should. But it also means that if you don’t have a system that empowers or motivates your employees to solve customer problems, you may be feeling the negative impact on your business.

Most people don’t set out to dislike or become a detractor for a business. The reason this happens is when a satisfied or neutral customer encounters a problem or an issue that isn’t resolved. At that point there is an immediate decline in loyalty. However, if the problem is handled well, the customer’s loyalty increases above his or her original loyalty level.

The biggest determining factor as to whether a customer becomes or remains loyal after a problem is whether that problem has been resolved. Unfortunately, many times employees believe that they are resolving a problem, when in fact they aren’t.

This happens more often than you might think. Employees jump to a solution for the customer; quote company policy back to the customer; or go for the easiest solution, which is often a discount. The end result is an unsolved problem and a frustrated customer.

To ensure that your customers feel like their problems are resolved in a satisfactory manner, be sure that every employee follows an established process for customer complaint resolution. These steps should include acknowledging the problem, taking down facts, taking ownership of the problem, ensuring the customer receives a resolution to the problem and following up to make sure they are happy with the resolution. If one or more employees don’t follow this process, make sure there are consequences so that next time they will be motivated to follow the process.

It only takes two detractors to undo all the hard work and effort you put into building a positive image that results in one new business referral. You may want to consider spending as much time training employees in customer complaint resolution as you do in coaching them how to get referrals.

In a lagging economy, keeping your loyal customers loyal can become increasingly more challenging, but there is probably no other time when good customer loyalty is more vital to your business. Your loyal customers are your high-value clients, bringing in as much as 80% of your overall sales, according to Pareto’s principle (the 80-20 Rule). These customers will not leave you for your competitors based merely on prices; customers stay loyal to businesses that provide them additional value and consistently outstanding customer service.

We’ve provided 5 tips for maintaining customer loyalty in any economic climate. These steps will help you gain a better understanding of who your best customers are and what you can do to keep them loyal.

1. Ask Them What They Think.  Survey all of your customers, former customers and potential customers with just two simple questions: a. On a scale of 1 to 10, would you recommend us to others? (1 = definitely no, 10 = definitely yes) and b. Why or why not? The answers to these two questions tell you how what general percentage of your customers is loyal as well as their reasons behind why they are or not.

2. Stay In Touch.  Whether it’s included in a loyalty program or you purchase on separately, find an email marketing tool and use it wisely. Be sure to target messages to the right customers at the right time. Provide your customers specific information they would find helpful and special offers that are customized just for them. Let them know about contests, upcoming events, new products, etc. But don’t send out too much too often. Find a balance between encouraging their patronage without taking advantage of their trust.

3. Go the Extra Mile.  In addition to your advertisements, announcements and non-solicit emails, sign up for a greeting card system or set up recurring email campaigns. Send birthday greetings with a gift or special offer just for them. Thank them on their “customer” anniversary for their continued patronage to your business. Send them a greeting if you’ve not seen them x-number of months and extend a special offer for their return visit. This personal touch helps your customers understand that you value them as individuals and invites more loyalty and trust.

4. Encourage Participants, Not Spectators.  Keep your loyal customers involved and ask for their opinions on any pending changes or new directions in your business arise. You never want to make a business decision that will alienate your loyal customers. (Remember the Pareto principle!) As loyal customers, they will love having a say in things and will provide an invaluable incite to your focus groups and planning meetings. Plus, once a decision is reached, their word-of-mouth marketing will achieve more success than almost any other marketing efforts you employ.

5.  Say It To Their Face.  Never shy away from an opportunity to thank your customers for their business. Train your employees to extend sincere thanks for even the smallest business transaction. Greet your customers by name (when you can) and encourage all your employees to do the same. Host customer appreciation events. Support local charities. Be involved in their (your) community and you will be surprised how much you get ahead by simply giving back!

This list is by no means exhaustive. Please share any other approaches you have taken to keep your loyal customers loyal.

This blog was reprinted from Driving Retention, the auto dealer’s one-stop service rewards program resource.

In a lagging economy, keeping your loyal customers loyal can become increasingly more challenging, but there is probably no other time when good customer loyalty is more vital to your business. Your loyal customers are your high-value clients, bringing in as much as 80% of your overall sales, according to Pareto’s principle (the 80-20 Rule). These customers will not leave you for your competitors based merely on prices; customers stay loyal to businesses that provide them additional value and consistently outstanding customer service.

We’ve provided 5 tips for maintaining customer loyalty in any economic climate. These steps will help you gain a better understanding of who your best customers are and what you can do to keep them loyal.

1. Ask Them What They Think.  Survey all of your customers, former customers and potential customers with just two simple questions: a. On a scale of 1 to 10, would you recommend us to others? (1 = definitely no, 10 = definitely yes) and b. Why or why not? The answers to these two questions tell you how what general percentage of your customers is loyal as well as their reasons behind why they are or not.

2. Stay In Touch.  Whether it’s included in a loyalty program or you purchase on separately, find an email marketing tool and use it wisely. Be sure to target messages to the right customers at the right time. Provide your customers specific information they would find helpful and special offers that are customized just for them. Let them know about contests, upcoming events, new products, etc. But don’t send out too much too often. Find a balance between encouraging their patronage without taking advantage of their trust.

3. Go the Extra Mile.  In addition to your advertisements, announcements and non-solicit emails, sign up for a greeting card system or set up recurring email campaigns. Send birthday greetings with a gift or special offer just for them. Thank them on their “customer” anniversary for their continued patronage to your business. Send them a greeting if you’ve not seen them x-number of months and extend a special offer for their return visit. This personal touch helps your customers understand that you value them as individuals and invites more loyalty and trust.

4. Encourage Participants, Not Spectators.  Keep your loyal customers involved and ask for their opinions on any pending changes or new directions in your business arise. You never want to make a business decision that will alienate your loyal customers. (Remember the Pareto principle!) As loyal customers, they will love having a say in things and will provide an invaluable incite to your focus groups and planning meetings. Plus, once a decision is reached, their word-of-mouth marketing will achieve more success than almost any other marketing efforts you employ.

5.  Say It To Their Face.  Never shy away from an opportunity to thank your customers for their business. Train your employees to extend sincere thanks for even the smallest business transaction. Greet your customers by name (when you can) and encourage all your employees to do the same. Host customer appreciation events. Support local charities. Be involved in their (your) community and you will be surprised how much you get ahead by simply giving back!

This list is by no means exhaustive. Please share any other approaches you have taken to keep your loyal customers loyal.

This blog was reprinted from Driving Retention, the auto dealer’s one-stop service rewards program resource.

Three words that every salesperson hates to hear from a potential customer are these: “I’ll Be Back.” That’s because the average auto dealership sees 75 to 80 percent of floor traffic leave the store without purchasing a vehicle, and 40 percent of those shoppers will buy a vehicle in the next three days from a competitor.

But short of tackling your customers as they head out the door, what can you do to stop this mass defection? Offering an incentive to come back is one method that is proven to work. In a recent six-month long field test with auto dealers, a time-restricted, redeemable gift card was very effective at targeting these prospects and turning them into vehicle buyers. In fact, one Toyota dealership sold ten new Toyotas in the first 10 days on the program in which they offered a gift card for the buyer to return. And overall, dealers who offer an incentive card see 18-20% of prospects return and purchase a vehicle within 10 to 15 days.

Other ideas include following up immediately via phone and/or e-mail with a warm, personalized message. Customers want to feel appreciated and a little extra attention can go a long way.

Salespeople, what do you do when you hear those words, “I’ll Be Back?” What additional best practices have worked for you to get customers back into the dealership?

Three words that every salesperson hates to hear from a potential customer are these: “I’ll Be Back.” That’s because the average auto dealership sees 75 to 80 percent of floor traffic leave the store without purchasing a vehicle, and 40 percent of those shoppers will buy a vehicle in the next three days from a competitor.

But short of tackling your customers as they head out the door, what can you do to stop this mass defection? Offering an incentive to come back is one method that is proven to work. In a recent six-month long field test with auto dealers, a time-restricted, redeemable gift card was very effective at targeting these prospects and turning them into vehicle buyers. In fact, one Toyota dealership sold ten new Toyotas in the first 10 days on the program in which they offered a gift card for the buyer to return. And overall, dealers who offer an incentive card see 18-20% of prospects return and purchase a vehicle within 10 to 15 days.

Other ideas include following up immediately via phone and/or e-mail with a warm, personalized message. Customers want to feel appreciated and a little extra attention can go a long way.

Salespeople, what do you do when you hear those words, “I’ll Be Back?” What additional best practices have worked for you to get customers back into the dealership?

1) Don’t aim for a quick fix: customer loyalty is a long-term commitment.

2) Make it a process, not a program.

3) Establish and empower your loyalty team. Also regularly measure and review staff performance.

4) Know your customers’ buying habits.

5) Provide attainable, affordable rewards.

6) Measure your costs and return. It pays to understand the economics of loyal customer relationships.

7) Have a plan to recover your costs.

8) Communicate often and personally with customers and loyalty program members.

9) Provide a perceived value to your customers/members

10) Keep it simple.

These 10 steps are excerpted from MediaTrac’s recently released white paper, The Auto Dealer’s Ultimate “How to” Guide to Customer Loyalty and Retention Program Set Up, Management & Measurement. For more information and detail about these steps please visit http://www.drivingretention.com/?p=661 and download your FREE copy.

1) Don’t aim for a quick fix: customer loyalty is a long-term commitment.

2) Make it a process, not a program.

3) Establish and empower your loyalty team. Also regularly measure and review staff performance.

4) Know your customers’ buying habits.

5) Provide attainable, affordable rewards.

6) Measure your costs and return. It pays to understand the economics of loyal customer relationships.

7) Have a plan to recover your costs.

8) Communicate often and personally with customers and loyalty program members.

9) Provide a perceived value to your customers/members

10) Keep it simple.

These 10 steps are excerpted from MediaTrac’s recently released white paper, The Auto Dealer’s Ultimate “How to” Guide to Customer Loyalty and Retention Program Set Up, Management & Measurement. For more information and detail about these steps please visit http://www.drivingretention.com/?p=661 and download your FREE copy.