Guest Post: Is Your Largest Customer Your Most Important One?

August 27, 2009

-l.i.l.l.i.a.n-

Maeve Naughton is an expert in the field of customer references and loyalty, and we are lucky to have her write for us today. Her post is a great reminder to us to appreciate all our customers, big and small. The little guy is often over looked but may actually have a larger impact than we think. Read on to see why.

Ask a sales person who their most important customer is and I bet 9 times out of 10 they’ll say company X because they’ve spent $2M with the company. Ask the CFO, and he/she will probably tell you the same thing. In fact, ask almost anyone in your company and they’ll agree. The most important customer is the one that spends the most amount of money. In a few cases, you might get the response of the most important customer is the highest ranking company on the Fortune list. 

Do you agree? What makes the most important customer for you, the reference professional? Is it the largest spending customer? Is it best known brand name? I think it can be, but it’s absolutely not the final determinant. As a reference professional you know that there’s a lot more to a powerful customer than a big P.O. or a brand name. Right?  Gosh, I hope so.

I think that the most important customer is going to be the one with the largest sphere of influence. It’s going to be the person who has the most impact on the future success of your business, not the business that has already happened – ie. the purchase order. Does “word of mouth” ring a bell?

I spend quite a bit of time interviewing customers for press release, case studies and general reference requests. I ask the customer how they first found out about my company. Sometimes it’s through a reseller, other times they had worked with my company’s products at a previous company and there are those that found out about us through word of mouth.

I have found that it’s sometimes the “little” guy that has more pull than the larger customers when it comes to their peers. Sometimes it’s the VP at a small company that is the president of the local network security group and therefore he has a lot of say and pull in what his members hear. More than likely he also has a large amount of influence because people look up to him and will ask questions of him when one of the members is looking for a new network security solution. Maybe it’s the medium sized business contact that is willing to talk to ten prospects a quarter and tell them how great your servers are or is willing to speak at conferences on your behalf. These are the guys you can’t shrug off. They have a sphere of influence that is real. 

Just because a customer is a Fortune 10 company doesn’t mean that they are the most valuable asset to your company. If they aren’t willing to let the world know that they are using your products, then they might not be as strong as a force as the smaller guy who’s not ranked on Fortune’s list.

However, don’t be misled and think that just because one of your customers has 10,000 followers on Twitter or 6,000 friends on Facebook that they’re influential. Know the power of their influence by asking them.

Maeve Naughton has been focused on customer references for more than a decade and has been responsible for creating and managing programs within technology companies. She has worked with small customers up to Fortune 50 customers for media and marketing opportunities such as press releases and case studies, as well as sales and analyst references. She currently is on the board of the Customer Reference Knowledge Sharing Network.  Read more of Maeve’s thoughts at Customer Reference Programs.


Stop The Firedrill And Jump Start The Sales Reference Process

August 17, 2009

With this challenging economy custom reference management continues to get increased attention. Our article on jump-starting a sales reference process was recently a selected Viewpoint exclusive. We emphasize big picture thinking, building a process and obtaining senior-level support. 

Check out the new article and share the message.


How to ask for customer quotes

August 6, 2009

Customer quotes are one of the staples of customer evidence.  But how do you go about getting customers to provide testimonial quotes or reviews for your product or service?  Here are a few tips to get started securing powerful customer quotes to accelerate your business.quotes

1. Ask.
Sounds simple, but this step is often overlooked. Sales people may not want to “bother” existing customers. However asking for customer quotes or testimonials can be a way to build stronger relationships with them. They may be flattered, and happy customers often love to talk about their experiences. Better relationships may lead to up-sell opportunities, product development and improved customer satisfaction.

2. Provide an alternate path for constructive feedback.
Make sure it is easy, simple and fast for customers to provide the review. Provide a link to the area on the site where they can write the review.  Don’t be afraid to give them guidance on what you are looking for. Provide examples or an outline that they can adapt to their own experiences. Make it clear where they should enter basic information such as name, title, company, rating, and comments. Obviously you would like them to attach their name and company to the review, but it is OK if they’d like to remain anonymous or only weigh in with part of your requested review. An anonymous review is better than no review and over time your customer may change his/her mind as they see others participating publicly. If they have constructive feedback, give them an alternate path to provide that information rather than letting it go into a public review. You want to be sure to capture and address specific comments or concerns, so as to direct them to the appropriate person, email or site.

3. Get a few easy ones under your belt first.
Nobody likes to be first, so when starting out ask a couple of your most trusted and friendly customers. They may be more tolerant of a process that has not yet been tested and can help you work out the kinks in a risk-free environment. Don’t begin with your largest customer or the one with the biggest brand name. Once you have gone through the process a few times with “easy-going” customers, you can then confidently move on to bigger or more strategically important ones.

4. Do your homework before plowing ahead.
Now that you have practiced on a few friendly customers you are ready to begin asking others.  But before you get too ambitious, make sure you do your homework. Sending out an impersonal email blast to all your customers asking for quotable comments is a mistake. Instead, take a targeted approach. Review who your most active users are, who has participated in private or public forums with your company, and who has expressed satisfaction recently. In many cases it will make sense to reach out to the specific sales person who sold the product or talk to the customer service representative who has a good relationship with the customer.  It will be much easier to get a review if you leverage existing relationships. Also remember that a constant flow of good comments is better than a whole bunch at one time and then nothing for a while, so pace yourself.

5. Integrate requests with an existing campaign.
It makes sense to check with Marketing, Billing and other departments to see what kinds of communications campaigns are going out to customers. For example, if there is a newsletter going out to all your current customers, you may want to evaluate the opportunity to include a simple message requesting quotes by encouraging happy customers to share their experiences. 

One of the nice things about quotes is that they require a relatively low effort of investment from your customers. If they aren’t part of your customer reference program today, go make it happen!