National Clothesline

One of the most commonly held beliefs in business is that the best form of advertising is word-of-mouth.

And there’s a reason for that: it’s true. Whether it’s your neighbor recommending a plumber, or telling you about a movie you just have to see, it’s a proven fact that direct personal endorsements carry more weight than a traditional television or newspaper advertisement.

Loyalty and word-of-mouth advertising are two ways that high-customer-satisfaction companies grow sales and market share. However, your bottom line depends on both the number of garments you clean and the price you charge for each garment. Once again, customer satisfaction plays an important role.

Some cleaners make the fatal error of believing that if they are the lowest priced, and market their services based solely on price, that customer satisfaction isn’t important. They often say: “You get what you pay for. If you want great service, don’t be so cheap and go to a full-priced cleaner.”

However, there is a threshold of customer satisfaction that every company must meet regardless of how low its prices are. Fail to meet that threshold and you might as well close up shop. Once that threshold has been met, price and customer service become intertwined and the sky’s the limit.

Don’t underestimate the intelligence of the consumer, because he or she is far smarter than we often give credit for. Research consistently shows that consumers have a good idea about which cleaners are winners and which are dogs. Garner a reputation for providing great customer satisfaction and you can charge premium prices. Saddle yourself with a reputation for marginal customer satisfaction and the only way to build market share will be through discounts and other incentives that will wreak havoc on your bottom line.

The key word here is reputation. It doesn’t necessarily matter whether a reputation is deserved or not; when it comes to driving behavior through customer satisfaction, perception is reality.

In addition to paying more for brands that offer great customer satisfaction, customers give those brands a greater share of their wallet. While most of us have a favorite grocery store or restaurant, very few of us are so loyal that we patronize only one establishment exclusively. We usually like to spread our money around. Not because we’re defecting to another brand, but because we just want to try something different. Let’s face it, no matter how much you love the ribs at Tony Roma’s, sometimes you want eat a little healthier.

Share of wallet is easier to understand in an industry where customers simultaneously do business with several different ones at the same time.

Most of us have more than one bank account (savings, checking, etc.) and often spread these various accounts among multiple institutions. Look on the counter of your bathroom and you’ll probably find health and beauty products from multiple brands. The more satisfied you become with any one brand, the more likely you are to begin handing over a greater share of your wallet to that brand.

Here is a true story about a simple but meaningful customer experience.

An executive arrived an hour late at his destination airport on a cold and rainy night. After getting his luggage, he went out to the curbside pickup area to wait for the Hertz rental car bus. He waited nearly 20 minutes in the rain, while two Avis buses arrived and left. Eventually, a third Avis bus came by and stopped. The driver looked down at the soaked and bedraggled traveler and asked if he was an Avis customer. When the executive replied that he’d been waiting 20 minutes for the Hertz bus, the Avis driver thought for a moment and then said, “Come on. I’ll drop you off at Hertz.”

Thanking her profusely, he boarded the bus, sat for a moment, and then asked if Avis had any cars available that night. When she said they did, he decided to forget his Hertz reservation and told her he would go ahead and rent one from Avis.

The story doesn’t end with that one rental, because this guy was someone who basically lives on the road. Since that night, not only has he become a regular Avis customer, but he tells that story often and has converted quite a few people to Avis customers as well.

The Avis bus driver was offering a simple act of kindness on a bleak night. But that one small bit of kindness – which cost Avis nothing – turned a competitor’s loyal customer into an “advocate” for Avis.

Reputations are built by customer advocacy, and advocates are created one customer at a time. The key for any company is developing more advocates than your competition, because in the world of customer satisfaction, advocates are priceless!