The Promotional Idea Showcase - Fall 2004 - Updated Quarterly

Make Them Love You!
How To Get & Keep Client Loyalty
By Cathy Cain-Blank

Some you love, some you tolerate, others you’d just as soon dump (or at least recycle). When you and your management team are sitting around the conference table, however, chances are you talk extensively about how to keep clients away from your competition. What does it take to earn – and retain – the loyalty of your customers? At the bare minimum, a quality product, coupled with good customer service. Special offers, affinity programs and other demonstrations of appreciation can also weigh in your favor. But in your quest to corral clients be sure you don’t lavish attention unnecessarily; success often stems from a few basic principles deployed during the day-to-day course of a business relationship.

Clients’ Time is Money, Too

Ron Kanatzar rarely lays eyes on his clients.

It isn’t that he’s too busy running Phoenix Orthodontics, his Blue Springs, MO-based orthodontic supply company. Or that he doesn’t enjoy the face time with his 250-plus clients. What he’s discovered, though, after 20 years in the field, is that the best way to demonstrate his understanding of his clients’ needs – which has resulted in their loyalty – is to keep his distance.

“Before I changed our model of selling and servicing clients by calling on, showing product to and writing up orders in person, I spoke to my biggest accounts to make sure they would be comfortable with my new vision,” explains Kanatzar. “They said, ‘We love you, we’ll see you if you want to see us, but we’re busy trying to put braces on kids so it’s fine if you don’t visit us on a regular basis.’ Our goal has always been to provide orthodontists with the tools they need to increase their practice. But a few years ago I realized we weren’t going about it in the best way.”

Today orthodontists can communicate and conduct business easily with Phoenix Orthodontics through the Internet. They can view the company’s 44-page catalog; study product specification sheets; submit inquiries; request samples; place orders; take advantage of specials; and subscribe to the company’s e-sales bulletins. (An e-newsletter was just introduced.) The supplier also offers an automated fulfillment program designed to improve clients’ cash flow, save time and money and maintain inventory of critical supplies. In addition, clients can even order T-shirts for their patients.

“The industry has gotten very competitive,” says Kanatzar. “Orthodontists need to promote their practice and kids wear shirts. We sell them by the gross.”

Knowing its position in the marketplace has also proven to be critical in Phoenix Orthodontics’ ability to keep clients. According to Kanatzar, there are 127 suppliers competing for the business of more than 14,000 orthodontists in the country. The four industry leaders own 80 percent of the market and everyone else – Phoenix notwithstanding – focuses on price.

“It’s our approach that has brought us where we are today. We’re less invasive, talk when it’s convenient to the client and the quality of our products – all of which are made domestically – is a given,” Kanatzar reports. “We aren’t about offering the hottest, newest products. We’re about providing our clients with ways of increasing their productivity and profitability.”

Do Unto Others

Alan Dworkin developed a loyal following of customers long before he even thought about establishing a business.

In the 1980s, while earning his living as a trader at the Chicago Mercantile Exchange, Dworkin purchased an Apple II computer to ensure accurate recordkeeping of his losses and gains. Once he mastered that task, curiosity kicked in and he began to play with the system, intentionally creating havoc which he would then figure out how to fix.

It didn’t take long for word to spread around the trading floor that Dworkin was computer-savvy. Soon the trader’s associates started bringing their software and technical problems to him. Dworkin would outline the series of steps to take to use an application or get a system up and running and instruct the person to let him know the next day if it worked. Time and time again, he was on the mark. Eventually, he started charging for his assistance.

Coincidentally, the Chicago Apple office for sales and education staff was located in the same complex as the Exchange. When Dworkin wasn’t trading (conservative by nature, he wanted to hold on to the nest egg he had built) he hung out at Apple, eager to learn more about the personal computer. Over the next several years the computer enthusiast upgraded his computer several times. Meanwhile, his network of coworkers, peers and friends in need of technical support and advice continued to expand.

In 1995, Dworkin’s wife, Lisa, became ill. He took a year off to help care for her and their two young sons. The experience was so jarring the couple concluded it was time to reduce the stress in their lives, beginning a change in Dworkin’s career.

But when Dworkin started exploring other opportunities, he couldn’t shake the idea of whether he could earn a decent living working with what he has come to know and love: the computer. He had the know-how, the interest, a network of prospective customers and his buddies at the Chicago Apple office were willing to set him up as a reseller. So he decided to give it a try.

That was seven years ago. Today Dworkin is an Apple Authorized Reseller Affiliate; an Authorized Xerox Peak Reseller; an Authorized LaCie Reseller; a member of various Apple networks; and a reseller for Hewlett-Packard. From the comfort and convenience of his north suburban home, Dworkin provides training, software and hardware to Chicago area businesses. He has over 100 clients who call every four to 12 weeks in need of technical help or new equipment. They range from a downtown financial institution’s graphic design department and a small chain of beauty salons to home-based small business owners.

Since he first set up shop, Dworkin has retained every client but one. (This is through no fault of his own. The client is faced with financial challenges and refuses to take Dworkin up on his repeated offer of a slow payment plan.) What makes this statistic particularly notable is that the majority of his revenue – typically between 60% and 75% – stems from the sale of equipment which is available from a variety of sources.

Even more impressive? Virtually every client refers Dworkin to his or her friends and associates.

“When someone goes to a retail store to buy software or hardware, the people behind the counter can only sell the products they have – and in three months those salespeople might work somewhere else. I only sell products I know will work with a client’s system, and I only sell products I know are backed by companies that offer reliable service and support,” explains Dworkin.

Selling the right equipment is only part of the reason Dworkin has been so successful. Usually he wins clients over with his service. For starters, he doesn’t charge for minor problem solving. If he spends four minutes troubleshooting he won’t bill the client. Each occurrence, he says, is akin to running an ad in the paper – but it doesn’t cost him $500. When the minor fix-its add up to an hour, that’s when he’ll send the client an invoice.

The most telling display of Dworkin’s dedication to his clients is his guiding principle: crises come first. If Client A is scheduled for a demonstration of a scanner on Tuesday morning at 10:00, but Client B calls Monday afternoon in a panic because her system is down, Dworkin will be off to see Client B first thing Tuesday morning and Client A’s demo will be rescheduled. Before companies sign on with Dworkin he explains his policy and they must be willing to abide by it. How strongly does he feel about this clause? When a graphic design department offered him a 50-hour contract but said he had to be on site by the next business morning if they needed even non-emergency assistance, he turned them down.

“The only thing I have to sell is my reputation,” says Dworkin. “I treat my clients like friends.” (Only when pressed does Dworkin own up to the degree of good will his approach has generated among clients. Once, after giving a prospect a client’s phone number to call for a reference, the prospect called him back. “Do you know what she said about you? She said, ‘He walks on water.’ You’re hired.”)

Become a One-Stop Shop

As the Director of Marketing and Business Development for a 200-employee healthcare company operating six diagnostic testing centers in Florida, Dana Schroeder has plenty of promotional opportunities to consider.

Her number one priority is ensuring that physicians are aware of the organization’s 25-member team of specialized radiologists and state-of-the-art testing equipment. In addition, she is responsible for enticing the general public to take advantage of the opportunity to ward off potentially fatal illnesses (e.g., heart disease or lung cancer) by using the organization’s advanced screening equipment.

You might think that Schroeder would welcome the almost-weekly unsolicited phone calls and visits from promotional products distributors and agencies hungry for her promotional dollars. Surely they try to woo her with ideas and programs designed to generate more business for the growing enterprise?

“Absolutely,” says Schroeder. “But I tell them all that I’m very satisfied with someone else and have been for several years.”

Hearing those words makes promotional consultant and integrated marketing solutions specialist Jon Clark – Schroeder’s “someone else”– smile. He is grateful for her loyalty, especially since she’s been employed by three different companies since he began working with her, but knows it is hard earned.

After Clark moved from California to Florida in 1999 and set up shop as a distributor (his second venture; he sold the first as part of his relocation plan), he joined the local Chamber of Commerce. At the first function he spotted Schroeder, whose nametag indicated she worked in marketing for a hospital. He pegged her, understandably, as a person he’d like to know, even though standing by her side was another distributor. She introduced him to several people at the event and wished him well – as did almost everyone he met that night.

“Many of the prospects I met early on in Florida were braced for me to be a fly-by-night operation, to take their money and run,” recalls Clark. “That first year I was told more than once, ‘Talk to me when you’ve been here a couple of summers.’ I’m in a small community. It became clear quickly that it would take time to build relationships.”

The first year was tough – lots of networking, not a lot of sales. But Clark continued to work his prospect base, including Schroeder, calling or dropping off catalogs periodically and reminding them he was available if needed. One day, out of the blue, Schroeder called. “You’re it,” she said, “I’m tired of missed deadlines, backwards logos and wrong colors.” Clark was in the car the next day driving the 70 miles to her office. He left with a project, which he completed on time. From that point forward he did whatever he could to keep Schroeder satisfied, including, within a few months, announcing that he was now equipped to handle her commercial printing needs.

Schroeder was thrilled. “Jon had all of our artwork. It was easier to call him than a second vendor,” she says. “He made certain our message and look was consistent with all of our printed literature and promotional products.”

Through his dealings with Schroeder, Clark came to know Schroeder’s assistant and the heads of several departments. He was so at ease with the organization as a whole that when Schroeder announced she was leaving the hospital for her current position he wasn’t surprised to discover that her replacement planned to continue working with him – and still does.

Schroeder’s relationship with Clark has deepened since she joined the diagnostic company at the start of this year. “When I left the hospital and joined this company, neither Jon nor I knew anything about diagnostic facilities,” she admits. “Jon researched web sites and read a lot of literature to help educate me about my new field.”

The ultimate testament of Schroeder’s loyalty? Recently when Clark announced that he would be able to offer full-service marketing, including advertising, media buying, public relations and sales strategies, Schroeder took another chance on Clark and signed a 12-month consulting contract. Now, in addition to handling her promotional product and printing needs, he acts as an account executive, helping map out radio and newspaper ad campaigns, Power Point presentations, sales collateral – the works.

“ He may not have 52 awards on the wall but I still chose him as our agency of record,” says Schroeder. “I know and trust Jon, he makes me look good, and the partnership is comforting.”

For Clark, the decision to expand his company’s services was critical to strengthening ties with Schroeder – and other – clients. “Now I’m not just someone who sells products. I’m a marketing partner. I now have the tools needed to help clients become more successful,” he says.

Speed & Agility Count

Ron Kanatzar likes to describe his orthodontic supply company as a Porsche going down the interstate. Some of his competitors he likens to 18-wheelers. “We can switch direction quickly,” he explains.

Don’t ever let a large competitor psych you into thinking that they can inherently do a better job of retaining clients because they are mightier in size and boast a bigger bank account. As Kanatzar points out, a small business can react much faster than a large one and that’s often how a service provider wins – and keeps – a client: by delivering what they need, the way they want it, when they need it, time and time again.

Highland Park, IL-based marketing specialist Cathy Cain-Blank is a frequent contributor to Imprint.