As presented to the Castle Pines Chamber of Commerce on June 3, 2015 by Pamela Herrmann, Founder, The Paragon Effect. Host of the Customers For Life Podcast available on iTunes

1. Pamela Herrmann, Founder

2. CUSTOMERS
F O R L I F E

3. 3T H I N G S Y O U C A N D O T O D AY
LO W C O S T - H I G H I M PA C T

6. M A N A G I N G E X P E C TAT I O N S I S
H I G H LY P R O F I TA B L E

8. CUSTOMER EXPERIENCE

9. • Did you say anything to the manager?
• Did you share the story with anyone you know?
• Did you go online and share it?
H O W D I D Y O U R E A C T ?

10. DO YOU BELIEVE
YOU PROVIDE
SUPERIOR
CUSTOMER
SERVICE?

11. DISSATISFIED CUSTOMERS
HOW VOCAL ARE THEY?
96%
4%
People who speak up They’re not happy,
but you wouldn’t know it

12. THE GREAT DIVIDE
80%
BUSINESSES WHO BELIEVE
They provide superior
customer service
THEIR CUSTOMERS
who agree
8%
92% of businesses are losing money here!

13. By 2016, 89% of companies expect to
compete mostly on the basis of customer
experience, versus 36% four years ago.
-Gartner Technology Research

15. T H E 1 0 - S E C O N D S L E D G E H A M M E R

16. Perfect'Customer'Lifecycle'T H E P E R F E C T
C U S T O M E R L I F E C Y C L E

17. ALL TOUCHPOINTS
Phone
Email
Cross the threshold
Open the door
Land on your website
Review sites

18. P R O S P E C T S A R E D E C I D I N G
V E RY Q U I C K LY…
• Do I like you?
• Can I trust you?
• Do we share the same values?

20. B A N K I N G I N D U S T RY
32% of new customers will leave within the first year
• Over 20% of those people leave without
conducting a single transaction
• Over 50% of those people leave within the
first 100 days

21. 4 6 % C H U R N R AT E

22. C E L L P H O N E I N D U S T RY
21% of people who sign a 2-
year commitment break the
contract in the first year

23. 20% of their customers are leaving within 100 days
S O F T WA R E A S A S E R V I C E I N D U S T RY

24. 2 0 - 6 0 % AT T R I T I O N R AT E W O R L D W I D E
A C R O S S A L L S E C T O R S E V E RY Y E A R

25. Most businesses don’t know how many
customers they’re losing in the first 100 days.

26. What’s'sad'is'
that'most'
businesses'are'
making'it'
worse.'
N O O O O O O O O O O !

27. M O S T B U S I N E S S E S
D O N ’ T K N O W T H E
L I F E T I M E VA LU E
O F T H E I R C U S T O M E R
L I F E T I M E VA LU E
ACQUIRE A NEW CUSTOMER
RECOVER AN EXISTING CUSTOMER
EXPLORE WAYS TO INCREASE THAT VALUE

28. So if you don’t know the lifetime value of your
customer, you’re flying blind as to how to
increase profitability.
(This is another place where you’re leaking money)

29. T H E G O O D N E W S !
A few simple tweaks can have a
huge impact on the bottom line

30. “Pamela, I’m not that
creative and I wouldn’t even
know where to start.”

31. R E V E R S E E N G I N E E R
C O N S U M E R B E H AV I O R

32. Y O U H AV E O N E S H O T
T O G E T I T R I G H T…

33. T H I S I S N ’ T A K N O W L E D G E P R O B L E M …

34. THIS IS AN
IMPLEMENTATION
PROBLEM

35. T H E PA R A G O N E F F E C T

36. A F U L LY E N G A G E D C U S T O M E R R E P R E S E N T S …
An average 23% premium in terms of share of
wallet, profitability, revenue & relationship
growth compared with an average customer

37. A N D…
Companies that engage both their customers
AND their employees gain a 240% boost in
performance related outcomes.

38. 1TA K E A B A S E L I N E

39. I N A P R I VAT E
B R O W S I N G W I N D O W
S E A R C H Y O U R
B U S I N E S S N A M E

40. I N A P R I VAT E
B R O W S I N G
W I N D O W S E A R C H
Y O U R N I C H E

41. • Look in the local directories
• All of the social networks
• Local Directories
• Ratings & Review Websites
• Set up Google Alerts
S H A R E T H E F I N D I N G S
W I T H Y O U R S TA F F

42. 2A S S E S S H O W Y O U
A N D Y O U R S TA F F
A R E S H O W I N G U P ?

43. T R A I N Y O U R E M P LOY E E S T O
B E C O M E G R E AT B R A N D
A M B A S S A D O R S

44. Stagecoach)Coffee,)Cooperstown)NY)S TA G E C O A C H C O F F E E , C O O P E R S T O W N , N Y
Matt

45. • He engaged me with a simple question
• He was present in the conversation
• He made me feel like Norm
• He acknowledged my review
• He reciprocated the gesture
• Created loyalty in 3 transactions
W H AT D I D M AT T D O ?

46. • 2 referrals
• A review on Trip Advisor
• A lifelong customer
W H AT D I D M AT T R E C E I V E
F O R H I S E F F O RT S ?

47. E V E RY T O U C H P O I N T
R E Q U I R E S H I G H E N G A G E M E N T
• Greeting
• Acknowledging
• Showing appreciation
• Lead with value
• Speed of response
• Anticipating needs
• Giving sincere and authentic thanks

49. • He focused on getting me the result fast
• He made sure I knew the value
• He asked me to think about him next time
W H AT D I D S C O T T D O ?

50. T H I S I S W H AT LOYA LT Y LO O K S L I K E O N L I N E

55. 3I D E N T I F Y T H E
I N D I F F E R E N T
C U S T O M E R

56. T H E I N D I F F E R E N T C U S T O M E R
• They could take you or leave you
• They feel no emotions towards your business
• They could care less if you succeed or fail
• They will never provide feedback
• They are vulnerable to your competitors offerings
• You don’t know who they are

57. Design one simple question that
your employees can ask at the end
of every transaction.

58. “Have we provided excellent service today?”

59. I F Y E S , G R E AT !
Tell them reviews help you reach more customers and
would they be willing to go online and provide a review?

60. R E V I E W S A R E P O W E R F U L
I N F LU E N C E R S !

61. 1. Ask questions & listen to understand
2. Empathize
3. Death to ego
4. Thank them
5. Let them know that their feedback helps you improve
your business, and would they be open to sharing their
thoughts with a manager
I F T H E Y G I V E YO U A T E P I D R E P LY …

62. BONUS
WHAT NO WEBSITE SHOULD BE WITHOUT

63. R E M A R K E T I N G T O Y O U R
W E B S I T E V I S I T O R S

65. E M A I L M A R K E T I N G C H A L L E N G E

66. M A N Y S T E P S T O G E T P E O P L E T O
C O M E B A C K T O Y O U R W E B S I T E
OFFER
OPT IN
MAIL SERVERSPAM/JUNK
COME BACK
TO WEBSITE
CLICK ON
LINK
OPEN EMAIL

67. CREATE A VIRTUAL LIST OF WEBSITE VISITORS
They don’t have to fill out any forms
All they have to do is show up

68. FA C E B O O K W E B S I T E R E TA R G E T I N G

69. Allows you to advertise to people who have visited
your website or that have viewed specific pages on
your site.
• Highly targeted
• Low cost
• Highly effective
C U S T O M A U D I E N C E P I X E L

70. • You’d be nuts not to do this
• Most businesses don’t know about this
• It creates a competitive advantage
If you’re not remarketing to your website
visitors you’re throwing money away.

71. 1. Differentiate - Transform your customer experience
2. Know what consumers are doing online and how to
position your business on their path
3. Embrace the mobile mind shift
4. Tap into the data & understand the insights
Y O U R B U S I N E S S N E E D T O
F O C U S O N 4 I M P E R AT I V E S !

72. Being&excellent&is&highly&
profitable:&
7&out&of&10&customers&said&
they&were&willing&to&
spend&more&with&
companies&that&provide&
an&excellent&customer&
experience&
.American&Express&Survey,&2011&
B E I N G E X C E L L E N T I S H I G H LY P R O F I TA B L E

73. Podcast
Podcast available on iTunes & soundcloud.com

74. www.TheParagonEffect.com/EBL
A D E E P D I V E I N T O C R E AT I N G
C U S T O M E R S F O R L I F E

75. T H A N K Y O U !
pamela@TheParagonEffect.com
720.480.7655
TWITTER: @pamherrmann