November 2, 2009
Creating Customer Loyalty after an Acquisition or Merger

Acquiring or merging with another company not only presents a number of great opportunities, it can also present unforeseen challenges or obstacles for your customers (and I should know, I’ve been through two!) Good leaders proactively address these issues. Below are some tips to help you do that and avoid any unforeseen challenges that may negatively impact your customers (current or newly acquired), thereby creating customer loyalty.

Immediately present a united front: Nothing irritates a customer more than having their account handled by one person one day and someone else the next, especially if they’ve built a good relationship with the previous person. If it is impossible to have the same representative work with one of your customers or accounts, at a minimum present a united front to the customer with the new and previous person and explain why the changes are necessary. Allow the customer to tell you what they appreciated about the previous person and what their new expectation will be moving forward. If you make every effort to meet these expectations, the change will be more agreeable for the customer.

Explain why the merger or acquisition benefits your customer: Many professionals get caught up in explaining the new features and advantages of their services or changes. However, customers do not buy features of a product or service, nor their advantages. Customers buy benefits. How does this new change benefit us, the customer?! The primary benefits customers buy are 1) Saving money or time, 2) Increasing revenue, 3) Enhancing their image, and 4) Survival in the market place. It is critical to explain to your client how your new merger or acquisition benefits them in one of these key areas.

Never allow red tape, bureaucracy, or politics to stand in the way of customer satisfaction: Companies known for excellent customer service indicate so in their mottos, philosophies, and mission statements. Nordstrom’s motto is “The Customer is King”; FedEx has the Purple Promise, which states “To Make Every Customer Experience Outstanding.” When two companies merge or one is acquired, there is a clash of corporate cultures. One isn’t necessarily better than the other, but it is important early on to recognize this and commit to not allowing cultural differences to stand in the way of providing your customers superior service.

Follow up is key in retaining customer loyalty: Never assume no news is good news. In some industries account retention is vital in the first 90 days of activation. Most customers will not fully tell you why they are leaving, if at all! So before your customers slides to the tail end of the business cycle bell curve into attrition, ensure all accounts have been contacted again after the initial communication of your merger or acquisition. Your customer may be happy with the changes and have no further questions, but knowing that their vendor cared enough to make sure, will go a long way with them.

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