Welcome

& Creating Lifetime Customers Lisa Ford Recognition: The Key to Higher Performance Greg Kirsch

Concentrate on Competencies Ability to Motivate Effectively Deal w/ Change Coaching & Mentoring Communication Negotiating Customer Service Planning & Goal Setting Recruiting & Hiring Stress Management Asset Protection Ten management areas we must be great at to run our companies, the Big Picture Today’s session cover

Progress & Good News Report Delegation: Getting Things Done Through and With Others Dr. Druker Attitude – It Really is Everything Zig Ziglar How are you being a “DIFFERENCE MAKER”

Clarify the HOW Step 1 WIIFM 2

“Another point is that if you want to go to the top in this business, this company, this industry, how do you get there? 85% depends upon your attitude. Finally, the biggest point in this whole section is that, we spend thousands of dollars to send our children to grade school, high school, college and beyond and what we pay for gets us only 15% of the skill-sets that they're going to need to succeed in life. “Whether you think you can or whether you think you can’t, either way you’re right.”

Progress & Good News Report Delegation: Getting Things Done Through and With Others Dr. Druker Attitude – It Really is Everything Zig Ziglar How are you being a “DIFFERENCE MAKER”

Creating Lifetime Customers featuring Lisa Ford

The Listening Advantage featuring Dr. Terry Paulson

The Listening Advantage featuring Dr. Terry Paulson

Developing Lifetime Customers “If you think the cost of an over-satisfied customer is great… think about the cost of an under-satisfied customer.” Lisa Ford Carbonated water, high fructose corn syrup, carmel color, phosphoric acid, natural flavors, and caffeine. Those are the ingredients for, arguably, the most famous beverage in the history of the world and the most closely guarded recipe on the planet. Those are the ingredients for Coca Cola. If the recipe is such a secret, then why are ingredients printed on every can of Coke made? (regulations) Because knowing the ingredients doesn’t necessarily mean that you know how to put those ingredients together and manufacture that recipe around the world. Perhaps it’s because knowing the ingredients doesn’t mean others can duplicate the formula for putting these things together. We’re going to look at this challenge today. Isn’t it true that when it comes to the delivery of extraordinary service, as a whole, most people—most companies—aren’t willing to pay the price it takes to achieve the value that extraordinary service can bring.

Developing Lifetime Customers “If you try to understand the ups and downs of the current economy by focusing on technology trends and investment fads, you’re going to miss the true underlying shift that’s underway. Customers are in control. There are changing the face of business as we know it. And YOUR company’s value is in their hands.” Patricia Seybold A June 19, 2006 article from The Wall Street Journal advises us that, “The higher executives climb, the more important it is for them to delegate. Trying to put their fingerprint on every initiative or constantly second guessing employees won’t make them effective leaders…”

Lifetime value of a customer

Lifetime Value of Customers Tide detergent $ Pizza Parlor $ Grocery store $ Cadillac $ Several years ago, I believe it was Harvard University that estimated lifetime customer values in the United States. If we’re going to pay the price of delivering extraordinary customer service, what’s it worth to us? If you are a Tide detergent customer for life, your worth to Procter & Gamble is an estimated $8,000 (US). The lifetime value of a loyal customer to a grocery store? An estimated $50,000. And to a car manufacture? An estimated $350,000. These examples are retail examples. In your business where the annualized sales may be hundreds of thousands or millions of dollars in revenue, the value of repeat business can be enormous. What is a loyal customer worth to you? Clive Humby, a consultant for Procter & Gamble, Gillette, Kroger Co. and other firms, said: “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” Earning the loyalty of our customers—by consistently and continuously exceeding their expectations—is the focus of our session today. Please turn to Page 1 in your packet. There is space at the bottom of page 1 to write… but I’m going to change the question you should answer.

Lifetime Value of Customers Tide detergent $ 8,000 Pizza Parlor $ Grocery store $ Cadillac $ Several years ago, I believe it was Harvard University that estimated lifetime customer values in the United States. If we’re going to pay the price of delivering extraordinary customer service, what’s it worth to us? If you are a Tide detergent customer for life, your worth to Procter & Gamble is an estimated $8,000 (US). The lifetime value of a loyal customer to a grocery store? An estimated $50,000. And to a car manufacture? An estimated $350,000. These examples are retail examples. In your business where the annualized sales may be hundreds of thousands or millions of dollars in revenue, the value of repeat business can be enormous. What is a loyal customer worth to you? Clive Humby, a consultant for Procter & Gamble, Gillette, Kroger Co. and other firms, said: “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” Earning the loyalty of our customers—by consistently and continuously exceeding their expectations—is the focus of our session today. Please turn to Page 1 in your packet. There is space at the bottom of page 1 to write… but I’m going to change the question you should answer.

Lifetime Value of Customers Tide detergent $ 8,000 Pizza Parlor $ 9,000 Grocery store $ Cadillac $ Several years ago, I believe it was Harvard University that estimated lifetime customer values in the United States. If we’re going to pay the price of delivering extraordinary customer service, what’s it worth to us? If you are a Tide detergent customer for life, your worth to Procter & Gamble is an estimated $8,000 (US). The lifetime value of a loyal customer to a grocery store? An estimated $50,000. And to a car manufacture? An estimated $350,000. These examples are retail examples. In your business where the annualized sales may be hundreds of thousands or millions of dollars in revenue, the value of repeat business can be enormous. What is a loyal customer worth to you? Clive Humby, a consultant for Procter & Gamble, Gillette, Kroger Co. and other firms, said: “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” Earning the loyalty of our customers—by consistently and continuously exceeding their expectations—is the focus of our session today. Please turn to Page 1 in your packet. There is space at the bottom of page 1 to write… but I’m going to change the question you should answer.

Lifetime Value of Customers Tide detergent $ 8,000 Pizza Parlor $ 9,000 Grocery store $ 125,000 Cadillac $ Several years ago, I believe it was Harvard University that estimated lifetime customer values in the United States. If we’re going to pay the price of delivering extraordinary customer service, what’s it worth to us? If you are a Tide detergent customer for life, your worth to Procter & Gamble is an estimated $8,000 (US). The lifetime value of a loyal customer to a grocery store? An estimated $50,000. And to a car manufacture? An estimated $350,000. These examples are retail examples. In your business where the annualized sales may be hundreds of thousands or millions of dollars in revenue, the value of repeat business can be enormous. What is a loyal customer worth to you? Clive Humby, a consultant for Procter & Gamble, Gillette, Kroger Co. and other firms, said: “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” Earning the loyalty of our customers—by consistently and continuously exceeding their expectations—is the focus of our session today. Please turn to Page 1 in your packet. There is space at the bottom of page 1 to write… but I’m going to change the question you should answer.

Lifetime Value of Customers Tide detergent $ 8,000 Pizza Parlor $ 9,000 Grocery store $ 125,000 Cadillac $ 290,000 Several years ago, I believe it was Harvard University that estimated lifetime customer values in the United States. If we’re going to pay the price of delivering extraordinary customer service, what’s it worth to us? If you are a Tide detergent customer for life, your worth to Procter & Gamble is an estimated $8,000 (US). The lifetime value of a loyal customer to a grocery store? An estimated $50,000. And to a car manufacture? An estimated $350,000. These examples are retail examples. In your business where the annualized sales may be hundreds of thousands or millions of dollars in revenue, the value of repeat business can be enormous. What is a loyal customer worth to you? Clive Humby, a consultant for Procter & Gamble, Gillette, Kroger Co. and other firms, said: “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” Earning the loyalty of our customers—by consistently and continuously exceeding their expectations—is the focus of our session today. Please turn to Page 1 in your packet. There is space at the bottom of page 1 to write… but I’m going to change the question you should answer.

What is the lifetime value of a customer to your company? Lifetime Value pg 1 - 2 What is the lifetime value of a customer to your company?

“But what about those of us who do not serve the bill-paying customers directly?” Several years ago, I believe it was Harvard University that estimated lifetime customer values in the United States. If we’re going to pay the price of delivering extraordinary customer service, what’s it worth to us? If you are a Tide detergent customer for life, your worth to Procter & Gamble is an estimated $8,000 (US). The lifetime value of a loyal customer to a grocery store? An estimated $50,000. And to a car manufacture? An estimated $350,000. These examples are retail examples. In your business where the annualized sales may be hundreds of thousands or millions of dollars in revenue, the value of repeat business can be enormous. What is a loyal customer worth to you? Clive Humby, a consultant for Procter & Gamble, Gillette, Kroger Co. and other firms, said: “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” Earning the loyalty of our customers—by consistently and continuously exceeding their expectations—is the focus of our session today. Please turn to Page 1 in your packet. There is space at the bottom of page 1 to write… but I’m going to change the question you should answer.

“Who relies on ME to get their job done right and on-time?” Ask yourself… “Who is my customer?” “Who relies on ME to get their job done right and on-time?” The service level given to an external customer is directly impacted by the service level given to an internal customer. Several years ago, I believe it was Harvard University that estimated lifetime customer values in the United States. If we’re going to pay the price of delivering extraordinary customer service, what’s it worth to us? If you are a Tide detergent customer for life, your worth to Procter & Gamble is an estimated $8,000 (US). The lifetime value of a loyal customer to a grocery store? An estimated $50,000. And to a car manufacture? An estimated $350,000. These examples are retail examples. In your business where the annualized sales may be hundreds of thousands or millions of dollars in revenue, the value of repeat business can be enormous. What is a loyal customer worth to you? Clive Humby, a consultant for Procter & Gamble, Gillette, Kroger Co. and other firms, said: “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” Earning the loyalty of our customers—by consistently and continuously exceeding their expectations—is the focus of our session today. Please turn to Page 1 in your packet. There is space at the bottom of page 1 to write… but I’m going to change the question you should answer.

Learning Goals Understand the lifetime value for your customers By the end of this session, we will cover how to: Understand the lifetime value for your customers

Learning Goals Understand the lifetime value for your customers By the end of this session, we will cover how to: Understand the lifetime value for your customers Exceed customer expectations and design a system to recover customer loyalty

Learning Goals Understand the lifetime value for your customers By the end of this session, we will cover how to: Understand the lifetime value for your customers Exceed customer expectations and design a system to recover customer loyalty Implement the 5 foundation areas of lifetime customer service

Creating Lifetime Customers featuring Lisa Ford

Share your idea(s) with your group. Key Ideas and Application Write down the important idea(s) from the presentation and how to apply them to your company or team. Share your idea(s) with your group. In small groups, select a team leader. Team leaders, please facilitate a discussion among your group where each of you share the idea(s) you found most important and how you would apply that idea within your workplace. You will find a worksheet on page 5 of your Participant’s Guide that you can use to record your group’s ideas. Team leaders, following your group discussions, I will ask you to share with us one of your group’s ideas and its application.

Most common cause of business failure… Lack effective customer Acquisition and Retention Systems Don’t attract enough qualified prospects Fail to convert prospects into profitable and repeat customers Let current customers slip away to do business with competitors Lack effective & efficient business management practices that create lifetime customers

Five Foundation Areas Be Reliable Be Responsive Blueprint # 1, Pg 5 Be Reliable Be Responsive Make Customers Feel Valued Be Empathetic Be Competent

Developing a Customer Recovery System Blueprint #2 pg 6 Situations Customers want Give to compensate Permission Training Recognize employees Ensure that employees have information they need to solve problems. Train & Educate: Help employees know what to do, how to do it, and why. Create Boundaries: How far can employees go and what they can do to solve customer problems? Version 1—incorporates the first half of exercise 2 from the packet.

Recovering Customer Loyalty Six-Step Strategy (see page 7) Do Something Extra!!! Debrief: What is the most difficult step in the recovery process? Which step in the recovery process is most commonly skipped? Is it necessary to apologize to a customer when we were not the employee who caused the problem?

Lifetime Value of Customers “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” –Clive Humby Several years ago, I believe it was Harvard University that estimated lifetime customer values in the United States. If we’re going to pay the price of delivering extraordinary customer service, what’s it worth to us? If you are a Tide detergent customer for life, your worth to Procter & Gamble is an estimated $8,000 (US). The lifetime value of a loyal customer to a grocery store? An estimated $50,000. And to a car manufacture? An estimated $350,000. These examples are retail examples. In your business where the annualized sales may be hundreds of thousands or millions of dollars in revenue, the value of repeat business can be enormous. What is a loyal customer worth to you? Clive Humby, a consultant for Procter & Gamble, Gillette, Kroger Co. and other firms, said: “It’s not about customers being loyal to you. It’s about you being loyal to your customers. You earn loyalty by giving it.” Earning the loyalty of our customers—by consistently and continuously exceeding their expectations—is the focus of our session today. Please turn to Page 1 in your packet. There is space at the bottom of page 1 to write… but I’m going to change the question you should answer.

Personal Blueprint / Action Plan I Plan to Implement / Best Idea Expected Result SMART Specifically Measurement Attainment Relevant Time-Based Action Steps Resources Needed

Past Action Plans Train customer facing employees ‘Customer Recovering’ process.

Past Action Plans Train customer facing employees ‘Customer Recovering’ process Share Five Foundation Areas of Lifetime Customer Service & train to overcome areas needing improvement

Past Action Plans Train customer facing employees ‘Customer Recovering’ process Share Five Foundation Areas of Lifetime Customer Service & train to overcome areas needing improvement Coffee Stains Exercise

Personal Blueprint / Action Plan I Plan to Implement / Best Idea Expected Result SMART Specifically Measurement Attainment Relevant Time-Based Action Steps Resources Needed