Customer Service Coaching Tip - Know the 4 Stages of Customer Development

Exceptional customer service happens when you develop your customers both internally and externally. So do you know the 4 stages and the Bridges that allow you to progress from each state?

To understand the 4 Levels of Customer Development begins by defining some common terms.

1. Prospect is someone with three of these four criteria:

1. Has a need
2. Has a budget
3. Has urgency
4. Is the decision maker

NOTE: A qualified prospect has all 4 criteria.

2. Suspects are just that suspects. Until you talk with them, you do not know enough to make any decisions about their status.

3. A customer is someone who engages in an interaction or a transaction for some gain or benefit.

4. A loyal customer always select you first and continues to select you first even there has been a less than positive interaction or transaction.

Now that terms have been defined, understanding the 4 Stages becomes a little easier.

First Stage: Suspect

As mentioned this is someone who does not know you. This individual does not meet the prospect definition. However, this person may never become a customer, but can become of a Center of Influence or a referral resource.

By crossing the Bridge of Awareness, you can begin to develop suspects into prospects. This requires ongoing marketing effort actions along with third party referrals. Networking events can also provide another awareness strategy. When the suspect sees you consistently at these type of business events, there is ongoing opportunities to build that relationship if he or she a potential client (fits your target market) or referral resource. If you have customer service people for your external customers, these individuals can also help begin to turn suspects into prospects.

Customer Service Coaching Tip: All of your internal employees are customer service people.

Second Stage: Prospect

These individuals meet 3 of the 4 criteria. Your goal is to discover the fourth criteria.

To turn this qualified prospect into a customer requires you walking over the Buying Bridge. Using a proven sales process, you begin to further strengthen the relationship through your marketing and selling skills.

Third Stage: Customer

After the transaction or interaction has been completed for some gain or benefit, you now have a customer who has bought from one at least one time. A long term relationship has yet to be established. However, even at this stage, this customer can become a referral resource as well as a Center of Influence.

The Bridge of Communication is how you develop the customer into a loyal customer. You make contact at least 2 to 3 times each month. The relationship is solidly established and you become a trusted advisor. Self leadership skills are critical when walking over this bridge.

Fourth State: Loyal Customer

This is the best place to be because the customer buys from you on a regular basis, is more forgiving if you make a mistake and provides many, many referrals. You have established a mutually agreeable relationship based upon share values as demonstrated by YOUR past behaviors.

Yet, even loyal customers can turn into suspects because you have sauntered across the Bridge of Denial. Now your focus and respective BEHAVIORS have changed from keeping the loyal customer happy to:

• Finding new customers
• Assuming customer will stay loyal
• Assuming "if it ain't broken why fix it"
• Assuming the customer will call you if he or she needs your products or services

Complacency with loyal customers becomes your standard behavior because you are so busy chasing new business. Big, big mistake.

Exceptional customer service demands that you understand not only Stages 3 and 4, but also Stage 2. For how your treat your prospects is an indicator of how you will treat your customers. Failure to develop your customers is a prerequisite for business disaster especially in today's marketplace where a click of a mouse or a few uncomplimentary words will find you scrambling for new business.

What other areas of customer service do you need to think about? This free audit looks to how you can build customer loyalty.

Are you looking for some additional business coaching training services? Why not visit business coaching gym that is designed to help you become better at business building including customer service to self leadership while respecting your valuable resources of time, energy and money.

Leanne Hoagland-Smith, chief customer officer, helps organizations through business coaching training services to return to the purpose of business that being building ravings fans while increasing productivity and profitability. With offices in Chicago, Indianapolis and colleagues nationwide, she can help you become the Red Jacket in the Sea of Gray Suits and double your business results.

Call 219.759.5601 to schedule a free business coaching consultation or schedule her new keynote of Yes You Can Grow A Business in a Down Economy.

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