Building Loyalty in Younger Customers

Something interesting is happening the customer relations game... historically winning strategies and services are not working on the youngest customers in the marketplace. Companies that have maintained a positive public image and strong consumer loyalty for decades are faltering in their ability to connect with the thirty and under crowd.

Why? There are typically a few key factors contributing to the lack of appeal to young customers:

The dominant sales model is oriented toward the company and not the consumer. Take, for example, buying automobile insurance the traditional way. You have to deal with an agent in person. This individual holds all the cards. They take your information, assess your situation, and make recommendations. You never see all your options, competitors rates, outside reviews, or anything else to reinforce the validity of the deal you're offered. You're expected to trust.

The younger generation isn't so big on blind trust. Wise beyond their years, they want to see the complete picture, take an active role in determining what is best for them and drive the decision to buy. The traditional sales model is not set up for that dynamic. In fact, many companies consciously try to hide negative reviews, competitors pricing and lower cost alternatives from their customers. This attitude will not fly with twenty-somethings!  If they perceive the sales process to be focused on maximizing corporate sales and not acting in their best interest they will view it as untrustworthy and shop elsewhere.

You have to communicate in the manner your customers prefer.  Twenty-somethings don't connect very often in person - especially for business.  They don't like to talk on the phone.  They live in a world of text messages, Facebook, Twitter, chat rooms and YouTube.  Forcing them to engage in meetings, endure multiple phone calls, read reams of impenetrable documents in small print or navigate a clunky website is sure to make them hate you.  My daughter recently informed me that email is 'old-school' and she doesn't check hers very often anymore. 

For most large organizations human interactions are based on a model from the 50's and even their online tools and resources are more in tune with 90's technology than 2011.  In order to build real relationships with younger customers you have to join the 21st century!  Otherwise they will do business with you only grudgingly and run to a competitor the first chance they get.  Going back to our auto insurance example, Progressive is stealing young customers left and right from players dominant in the industry for decades.  They show competitors rates side-by-side with their own, allow customers to easily shop online, never force interaction with an agent,  share testimonials, and offer a plethora of policy options.

Alignment of quality and care claims has to match your customers' reality.  Every company says they care about meeting their customers unique needs... every company claims to have an appealing and intuitive website... every company says the sale will be quick and simple.  We've all heard the claims, but they seldom match what happens in real life.  Baby boomers and middle-age professionals are likely to sigh and buy from you anyway.  Twenty-somethings are disgusted and they leave.

Rethink your website.  Openly share information and elicit feedback.  Make as many transactions as possible online.  Introduce apps.  Provide multiple signals of quality.  Use email, text and social media to offer updates, discounts and reminders.  And when someone does have to deal with a human being - you had better make it an efficient and positive experience.  If you don't, eventually a competitor will come along who realizes that it is 2011 and they will decimate your market share.

That Certain Special Something...

As I’ve said many times before, ‘customer satisfaction’ is not my favorite term. It implies that your goal is for people to walk away feeling ‘OK’, but not amazed… Satisfied, but not so excited they want to tell all their friends. If you really want to take a leap to the next level I urge you to go for the ‘wow factor’ and look beyond simple satisfaction.

The Virgin Group, launched 40 years ago by Sir Richard Branson, has become one of he most powerful and iconic organizations on the face of the earth by adhering to one simple principle – let’s give the customer some FUN! That lighthearted commitment to joy and unparalleled quality, as well as the less tangible elements of surprise and genuine concern for people, helped Virgin hit $1 billion in sales faster than any other company ever launched.


How can you leverage the ‘wow factor’ to build your own business? Understand a few basic principles and you’re well on your way:

Mediocrity is bad. The middle of the pack can seem like a safe place to be. You play off of your competitors, mimic other products and services, match your pricing to the market and try not to stand out. The problem with that strategy is that customers won’t see you as any different from the next guy. They won’t pay attention to your brand, respond to your promotions or tell other people about you. Today’s competitive climate is fierce, and if you choose to play it safe and accept mediocrity someone more memorable will easily edge you out.

What you like doesn’t matter – what your customer likes does! Most business owners get hung up on their own agenda and preferences. It’s human nature… ‘I love the color fuchsia –let’s use that!’… ‘Who wouldn’t want a lipstick dispenser in their car?’… ‘We all shop online so a retail presence is pointless.’ Take the time to get to know your customer intimately and to give them what they want. Go a step farther and think beyond their conscious desires to create amazing experiences and exemplary products that they would never even have thought of.

Take the ‘wow factor’ to the front lines. If you know and adhere to your customer commitment religiously and your staff, distributors and vendors don’t, you’re setting yourself up to fail. In order to create a truly stellar customer experience, you have to pull everyone into the vision. From the receptionist who answers your phone, to the sales staff, to the retail clerk, to your distribution channels… everyone has to understand the power of ‘wow’ and work hard to exceed customer expectations. At the end of the day, companies are just big groups of people working together towards a common aim. Make sure your team is all about ‘wow’!

Respect the value of loyalty. All a business really has to bank on is its customer base. You may have intellectual property you’ve created, but if no one buys it - who cares? You may have a highly educated staff, but if they can’t make money and you can’t pay them – who cares? You may have a beautiful facility, but if no ones comes in – who cares? Your customers are the lifeblood of your business and everything you do must revolve around their experience with you. Share your vision with customers. Communicate with them. Offer opportunities to interact. And never, ever break your brand promises.

Quantify the promotional power of ‘wow’. That certain special something you create is a very valuable commodity in your business world. Competitors can copy your products, offer similar services, mimic your ads and raise more capital, but the one thing they can never steal from you is your ability to deliver an exceptional experience to your customers every time. They cannot usurp your relationship with people who are passionate about your brand. The ‘wow factor’ negates the need to pay a pretty penny for marketing, it keeps your staff happy, it helps you innovate without endless investment in R&D, it keeps people coming back and talking about you. Make no mistake… wow is not fluff – wow is priceless.