Eight Ways to Build Customer Loyalty, Retention and Referrals

By David Taylor
Dental Economics


12/13/07 4:00 AM PT

CRM News: Customer Retention: Eight Ways to Build Customer Loyalty, Retention and Referrals

Lesson 1: Early Bonding Buys Boo-Boos

Did you know that a new customer can withstand up to eight negative
interactions with a business, as long as he or she has one positive
interaction first? Now, we recommend not going for the eight negative
interactions.

However, when prospective patients call for the first time, visit
for the first time, and receive your first follow-up calls, are you
doing anything special to really bond with them and turn the
interaction extremely positive in their minds?

Lesson 2: One Size Does Not Fit All

Customers are delighted -- and loyal -- when we understand and
respond to their specific needs. The same things are not important to
all patients. Some personality types value relationships and want to
feel deeply appreciated and known on a personal level. Some are very
business focused, and just want the bottom line in terms of cost and
time; others value comfort and avoiding pain and nothing else really
matters. Still others value dialogue and want to be consulted as a peer
in their care and have everything explained to them.

How long does it take you to learn each patient's specific needs -
and how many gaffes are team members committing in the meantime? Can
you survey or interview new patients during their very first visit to
find out what makes them tick?

Lesson 3: You Must Convey Value

Customers continue to exchange their money for products or services
as long as they feel they're receiving sufficient value. What is your
practice's unique value proposition? A value proposition answers the
following questions:

• What are my patients really "buying" from me?
• Why are they buying it from me and not from someone else?

In answering these questions, push yourself. The answers are not
always apparent or simple. Once your value proposition is internalized
by team members, you must convey (communicate) that value to patients
at every opportunity.

Lesson 4: Communicate Effectively

Customers love communication, as long as it comes in the format they
like, is brief, and contains information they want. Sounds simple,
right? So, how are you communicating with your patients? How are you
educating them? Do you know the type of communication they want and do
you provide the information they're looking for? Do you provide various
ways for them to communicate with you -- including valuable feedback on
your services?

Even if you consider yourself a "people person," effective two-way
communication isn't easy, but you can learn it with the right tools.

Lesson 5: Know Why Customers Leave

Successful businesses know why customers leave, and they work hard
to understand -- and fix -- the problems in their organizations,
systems, products and services that are causing those departures. Did
you know that the main reason patients change practices is the attitude
or indifference of the staff or doctor? What are you doing to address
that problem in your practice?

As you work hard to gather -- and listen to -- patient feedback (and
ex-patient feedback), look at your systems and processes to determine
the root cause of the problem. Fix the root cause and they will stop
leaving you for that reason.

Lesson 6: Measure!

If you want something to improve, measure it. If you want loyalty,
retention, and referrals to increase, measure them. What should you
measure? Consider the following metrics:

• The number of patients in your database who you see at least once a year
• Patient recall success percentages
• The number of new patients who found you because they were referred by someone
• The number of patients seen per month as a percentage of total active patients in the database
• Patient satisfaction ratings gathered via surveys. You are doing surveys, right?

Lesson 7: Ask for Referrals

At the right moment during patient visits, are you asking for
referrals? Are you offering an incentive or reward to existing patients
for referrals that result in new patients, or are you leaving it up to
them to just refer on their own?

Sure, you'll have to prompt them a little. Ask them if they know
anyone who is new to the area, or anyone who isn't completely happy
with their oral health, or if anyone they know has said, "Gosh, I wish
my teeth looked like yours!"

Lesson 8: It's a Team Sport

Great companies realize that customer loyalty, retention and referrals are the responsibility of every team member.

If one person lets down, the company suffers. Have you unified your
team around the goals of loyalty, retention, and referrals? Do you
reward your team around the goals of loyalty, retention, and referrals?
Are you carefully selecting the right team members and removing the
wrong team members?

Hear that? Opportunity is knocking!

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