If you can name one thing, what is the most important driving factor of your business? The answer might be varied depending on your line of work or industry, but there is one answer that would most likely resonate with all: the customer. People who work in customer engagement, sales, and other customer-facing jobs know it best. Yet it might help to take a better look at your customers and their behaviors, regardless of what your market is.
Customer service is an experience
Often overlooked as a complementary part of a business, many failed to consider how important it is to maintain a good relationship with the customers. Looking at it from the customer’s point of view, the service they experience can be a critical aspect that can help decide how certain products or services are valued in a company. A study published by Harvard Business Review concluded that customers do remember good and bad customer service experiences and are willing to reward companies that give them good services.
A similar survey conducted by American Express showed that seven out of 10 consumers in the United States decided to spend more money with a company that offered great customer service. Understanding what a good customer experience seems like a simple job. After all, almost all of us were customers for another’s business at some point. Even so, it is also a fact that bad customer experience has been the downfall of a lot of businesses.
An article written by Amy Gallo pointed out several things that helped determine what a good customer experience is. First, customers value your active presence in any online platform, including social media. The second is that customers value a fast and reliable response; some studies even show that a fast response is directly linked to sales performance.
Third, customers will feel more engaged with the business if they can get a response, regardless if it will be received with a bad, good, or neutral tone. Responding to both positive and negative comments is proven to give a better impact on the customer rather than ignoring them. Finally, it is important to build a personal connection with the customer; remember that customers are human beings too, thus it is important to treat them as a person. It is always helpful to try understanding them by reflecting on how you want to be treated if you were in their position.
The big potential in recurring customers
Acquiring new customers is important, but keeping your existing customer base is also very crucial. Research by Frederick Reichheld showed that a 5% increase in customer retention can boost your profit by 25-95%. It is also important to note that following up with existing customers often costs less than acquiring new ones. Signing up for the Certified Customer Service Performance Professional course can also help in helping your organization perform better with your clients.
It is a given that having a good customer engagement process will definitely help to secure recurring customers. Even so, it may be not enough to build a long-term connection. There are few other things to consider if you want to increase your client retention rate. Regular contact is believed to be the most effective way to maintain relationships and minimizing churn rate.
Keeping them in the loop for new products and taking note of their feedback can also positively impact your relationship with the customers. Similar to any other human relationship, it is always a good thing to feel involved and heard. Other benefits such as discounts or loyalty rewards can also boost sales. In the end, your customers are more than just numbers; they are the driving factors that deserve your attention.