Brilliant businesses are built on brilliant reputations, with few exceptions. A growing base of raving fans and happy customers spreading the word negates the need for excessive marketing spend. It also serves to grow revenue, profit, and all other metrics, and means your company easily overtakes competitors along the way. If every satisfied customer tells 100 more, you don’t need many to build an empire.
But what about when it’s the other way around? How do you turn around a sinking ship that’s been making customers unhappy for years? It’s a daunting task for any business owner, and that’s exactly the challenge Aleksandra Waibel and Kat Sallam faced when they took on a failing business with a terrible reputation. When they gained control of Skinovatio Medical Spa in Illinois, it was making $16K revenue per month, with an average Google and Yelp rating of one star, with many people commenting that they wished they could have rated zero.
Within two years, they turned the business around and converted to a franchise model, now with eight locations, many of which came as inbound leads. The duo’s top franchises earn between $70K and $120 per month, with an average Google rating of 4.7 stars, with Yelp and Groupon at 4.5. After learning from the trenches, Waibel and Sallam share their seven steps to winning back a reputation and client base.
Start from scratch
With no solid foundation from which to build, Waibel and Sallam affectionately called the first step “operation dishwashing” and went right back to basics. “First of all, we had to keep the remaining clients and prevent them wanting to go elsewhere. Then we had to win back the trust of the clients that left and didn’t want to return. On top of that, we were working on attracting new clients.”
This is no mean feat when the reviews are stacked against you. “We started from the beginning, with a focus on quality.” They focused on hiring more skilled and experienced practitioners before going through their entire CRM, personally calling every patient, offering them heavily discounted or complimentary treatments in return for another chance.
Being humble paid dividends when customers returned, not knowing what to expect, and were pleasantly surprised by the upturn in service quality. Is your main offering worthy of five stars, and how could you make it so?
Create new processes
Making inroads into overturning their brand haters into loyal fans, the owners turned the focus to process. The team was trained in the friendliest of hospitality customs and ensured each step was followed every time.
“We made sure every team member greeted each patient by their name and created a professional yet warm and welcoming atmosphere.” Waibel and Sallam would “shake hands with clients, introduce ourselves personally, and explain all of the changes that happened after we took over, before asking for their feedback,” said Waibel. They added in processes previously absent from the business, including follow-up surveys, reminder automations and courtesy calls.
There’s merit in admitting that you made mistakes in the past, but you’re turning this around for your customers going forward. Give a warm welcome and stay in touch to show that you care; client service basics that they never forget.
Upgrade the tech
Improving the quality of your core offering and your processes is the foundation, but it’s crucial to remove as much friction for customers as possible. Waibel and Sallam had inherited a website and database that wouldn’t serve them for their onward journey, not least because the booking system wasn’t integrated.
“We made big upgrades,” explained Waibel. “We build a new user-friendly website and hired a marketing team to focus on social media. We upgraded all our technology and added new equipment which allowed for new services.” They also made it easier for their clients to book, buy, and refer with a new client portal, and they started offering financing options and a membership program through which to offer specials.
Once people want to buy, make it easy for them to do so. Removing friction for your clients means they glide through to purchase easier than ever. A slick experience reassures clients that you’re on top of all your business processes.
Collect new testimonials
The first three steps enable your business to provide a much better service to clients. By now, sentiment towards your business should be improving. Now’s the time to begin rectifying those negative reviews, putting off would-be new customers.
Waibel and Sallam capitalized on the positive feedback they were now getting from their customer base. They ensured every testimonial served to win new clients. A simple yet effective strategy that shouldn’t be overlooked, especially during a turnaround operation.
“Our social media team asked happy clients for video testimonials that later were posted on our social media. They also took professional photos of our location, treatments, and client results to share on our website and booking channels.” Doing this in 2015 put the company ahead of the curve in aesthetics, which they know was a good move.
Share the good news around to entice new customers in. Social proof is a powerful influencer, so don’t miss out on reviews being distributed online by having a team on hand to capture them.
Focus on relationships
Client relationships are 80% of the puzzle in building a successful business, but supplier and partner relations form a big chunk of the rest. Once satisfied with the quality of their service and the way clients were looked after through the system, Waibel and Sallam looked at their other key relationships. They thought that by partnering with other trusted businesses, potential customers would see their brand as trustworthy too.
As well as benefitting from their partners’ reputations, Waibel and Sallam were given early access to new products. “By placing larger orders we would receive complimentary or discounted products, the savings from which we passed onto our clients.” With confidence in our suppliers, “we threw events at the clinic to let our clients try new services for free.”
How can you partner with companies that your dream clients already trust? Social proof matters, and having a strong referral network helps potential clients grasp that you’re the real deal. Start looking for opportunities to do the same.
Keep learning
To keep the positive reviews coming, it’s key to remain ahead of the curve in providing a genuinely great service. Continuing to tweak and enhance your product or service is a way to keep customers happy and returning.
Waibel and Sallam see this as crucial for any turnaround operation. In their case, the aesthetics industry was progressing and they didn’t want to get left behind. Instead of resting, the team pushed on to make further improvements. “We attended multiple seminars to make sure that we were learning from the best in this industry,” said Waibel. They also met more practitioners who could refer and recommend them to keep expanding their network.
Never stop learning. Progressing a turnaround business to new heights involves putting yourself out there, trying new things and not being afraid to fail.
Go the extra mile
Even when you think you’ve done everything you can, going that extra mile will secure the benefits your competitors just aren’t seeing. In Waibel’s case, this came in the form of enquiries from aspiring franchise owners so impressed with their business they wanted to open their own.
“We went the extra mile by treating strangers like family members. We baked homemade muffins, and we didn’t let anyone leave our practice hungry; it’s all part of our Polish hospitality!” Over freshly brewed coffee and a gooey chocolate cookie, Waibel’s team members would go deeper in conversation with patients, understanding more about their lives, and becoming an essential part of their week. Especially before invasive or needle-based treatments, these small touches would take the nerves off and allow their clients to relax.
Creating a friendly atmosphere is often more than just smiles. Going the extra mile means taking further steps to make sure your customers are having a relaxing time.
From zero to hero: not a short-term fix
Waibel and Sallam know this is no easy journey, and those expecting short-term wins need not apply. “A lot of these changes required investment. For many years, we would put money right back into the business instead of paying ourselves, a sacrifice we were prepared to make because we could see the long-term vision.” Put the work in at the start, build up from there, and get to a position where you thank your former self for doing what was required.
This article was written by Jodie Cook from Forbes and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].
