The Global Credit Crisis- credit crunch everywhere. From a New Zealand fund manager that froze $307.500 million of investors’ cash, to the warning that bank’s settling contracts with insurers early on could spark a rush by financial institutions to get as much capital as they can from insurers, (never mind that this could mean less protection for the rest of their stakeholders).

To Citigroup threatened by a lawsuit for alleged fraud in the marketing and sales of auction rate securities.

Not to mention the Big Three auto giants seriously compromised and sales the worst in years, or Nissan’s profits dropping 43%, BMW showing 33% less net profit and British Airways and American Airlines showing severe losses and having to lay off personnel.

And oil- unprecedented oil prices and while prices may come down- never to where they were a year ago. Weaker consumer confidence Las Vegas, Las Vegas! Having a problem and a major resort project postponed!

Never mind sliding housing markets and a weakening job market. One item that really stuck: A Gallup poll shows that since 1998 the number of people who say that the country is divided between halves and halve not’s has increased markedly. The # of respondents describing themselves as halves fell from 59% to 50% and the % of people describing themselves as have not‘s more than doubled from 17% to 35% as more and more people are feeling an economic strain.

The pessimism almost made me reach for my headphones and tune into Kung Fu Panda. Pessimism- some of this was justified and yet- I was reminded of a comment Russ Yaquinto- a Dallas based executive coach had recently made to me, that it’s in tough times that his business has the capacity to flourish, clients need him most to help them with their challenges. And I was reminded of other friend’s comments- that it’s in tough times that a company can most succeed if they rise above the competition, have employees that truly care about the customer, and of course the best products on the market (presuming the company does not have a cash flow problem).

I started thinking about the companies I enjoyed working with, the stores I shopped at, the establishments my friends and I ‘patronized”. Each flourished in “tough times”. Why? Each had developed a consistent strategy for wowing the customer that went well beyond just good customer service. Each had learned how to get a customer’s loyalty. They had built systems or accidently on purpose had loyal customers who were advocates and told everyone about them. They had customers who raved about them and became their best sales force. They strategically managed the customer process so the customer did their marketing for them.

Ken Blanchard, author of Raving fans, stated, “Your customers’ are only satisfied because their expectations are so low and because no one else is doing it better. Just having a satisfied customer isn’t good enough anymore. If you want to have a booming business you have to create raving fans.”

Frederick Reich held, author of The Loyalty Effect, tells us, satisfied customer’s who are “just” satisfied alone, tend to make their buying decisions primarily based on price. Since they do not have an emotional tie they can and do go elsewhere if someone else makes it worth their while, by extending new offers, coupon discounts, making business with them more convenient, extra widgets, prize, price breaks or other enticements. Loyal (customers, members, clients), on the other hand, customers who are truly engaged in your product or service buy additional services from you, even if your price is higher than your competitors and , AND they rave about you and refer others to you.

Reichheld doesn’t just look at typical customer satisfaction indexes and surveys. He advocates asking the “Ultimate” question… on a scale of 0-10 with 10 being highest, how likely are you to recommend us to your friends, relatives and colleagues? What do we have to change for you to give us a 10 the next time you take this survey? Reichheld tells us about Promoters, who rate you, a 9 or 10 and are those customers who are most likely to recommend your company, products or services. He mentions Detractors, who rate you a 6 or less, and are unlikely to recommend your company’s products and services. His equation: divide the % of Detractors from the % of Promoters and you know your net promoter score.

So what’s a company to do to increase their promoters and thereby reduce their detractors? This isn’t rocket science. On that flight I was on, a long one, the attendants came by once or twice. They did their duty, and in no way shape or form did they go out of their way to do anything else. Most of that very long flight they stayed chatting with their buddies in the back galley. Service- that’s a thing of the past on most airlines. Oh- but the airline industry is going through tough times and this particular carrier is laying off 13 or so % of their work force. This is the same airline with which I canceled two trips and decided on Southwest instead.

I had called this airline to ask about transporting a package that needed extra care. The agent who first answered said a supervisor would have to answer. On the road, I did not have time to wait- said I’d call back. Several days later I did, asked for a supervisor, and was given a real third degree. Finally got a supervisor, who when I explained my challenge said, “the agent could have handled this.” “Thank you I responded, and sorry what was your name again?” “Omar… I mentioned that at the beginning” “ Gracias, Omar and…” He cut me off with, “English is my language of choice”. Now since I am Hispanic, and his name was, I was not being sarcastic, quite the contrary, just trying to make the best of a lousy interaction in which I was being made the bad customer. Did I mention this was a long flight I was already booked on, and yes, I had a paid ticket? Oh, and his paycheck again… signed by?

Tough times, yes- even more reason to give outstanding service. But they didn’t. And that one phone call and how it was handled cost that airline $845 in business. I went elsewhere for the same service on two upcoming trips. Now we all know word of mouth sells. It’s just common sense – delighted customers talk us up and dissatisfied or marginal customers talk badly about us and we know they tell more people of their dissatisfaction than they do when satisfied.

Building customer, member, client loyalty in challenging economic times is even more important to do than it is in good times. With budget cuts, austerity plans, concern about making decisions so let’s hold off for now and put off making non necessary buying decisions; companies and individuals scrutinize spending decisions more carefully. Strong loyalty is in your favor and weeds your competition out.

That same trip I went out of my way to find a floral garden way out in the country, and way out of my way. Maui Floral in Makawao, Maui, run by Maureen and Carver Wilson, (www.mauifloral.net). Yes they ship. And they know their stuff and the flowers are exquisite. Since I have family in Hawaii I get to the islands from time to time. When I do, I like to treat myself to flowers or fruit to bring back with me for friends and associates. Had learned the hard way that the items need to be agriculturally inspected and certified. Maureen or her team takes the time to go with you and help you pick the best bunch she can find. You’re spending peanuts in the scheme of things but the point is they care, they listen, and they make you feel as if you’ve just spent a small fortune. And since they ship to large distributors, some of their customers do. Regardless you are made to feel important. Not, next…

So how do you develop raving fans? How do you assure your relationships are of high value? Challenging economic times call for the extraordinary care and feeding of customers. If we want them in our court then we have to show commitment and loyalty to them. First you have to show you truly care, about their business, their problems, their questions. It’s not about your mood, your concerns, the downsizing and company problems. How do we accomplish building loyal, not just satisfied customers? Just a couple of thoughts:

Everyone- everyone in the organization needs to absolutely, definitively understand they are there for the customer, member, client. That requires total focus on the customer, not keeping them waiting, not putting them on hold, not having long lines with ropes to herd them in, not having a voice only system that indicates no real people work here, and treating each and every customer as an individual. It’s really listening to them. After all they write our paychecks. Yes, customers write our paychecks and keep us employed, not the company president. Having well trained, informed, knowledgeable people, having a well priced, quality product, on time delivery or better yet faster than expected. Don’t forget accurate- are all critical.

Wowing the customer means everyone in the company lives the company mission, everyday. It’s more than friendly, it’s truly being present. Just a thought, what would happen, if it were possible for it to, if the company president did a walk about and personally asked employees, “what did you do for our customer today”? And I wonder, what would happen if the company president called a few customers everyday and asked,”what did we do today to provide you with the very best service we could? Oh, by the way, what do we need to do to earn a referral from you”? Would you recommend us to your friends is a critical loyalty measurement.

As my friend Russ said, even in tough times- we can make it work. It just takes a little more effort. But- I’d like you to consider, it doesn’t take that much more- most of our competition falls so short. Loyalty- being the customer’s advocate, it well may be the key to satisfied employees, customers, members, clients, and increasing the bottom line. How are you doing?