How Great Customer Service Leads to Great Customer Loyalty (And That’s What We All Want!)

Last week I wrote about some of the issues keeping marketers up at night and offered some suggested actions for each. Do you know what they are? Are you too worried about them?

The number one challenge faced by marketers today is reaching their customers, which may come as a surprise in this multi-channel, always on, environment we live in. However, once you have reached them and convinced them to buy, you still have the, perhaps even tougher, challenge of keeping them.

With so much on offer and the desire for novelty constantly growing, customer loyalty is declining. In fact, according to Bain & Co and Kantar Worldpanel’ 2012 survey mentioned, 50% of a brand’s ‘loyal’ users today will not be with them one year from now. 

Therefore, to follow on from last week’s post, I want to review what makes good customer service, since I believe it is one of the few ways of both building and keeping loyalty, as well as getting that vital advocacy that can grow your customer base even further. And I don’t seem to be alone in this belief.

Steven Van Belleghem wrote a great post on “Why customer loyalty is declining and what companies can do about it in which he shares his views on why this is so and what companies should do about it. His three solutions were:

1.      Treating customers well

2.      Treating employees well

3.      Doing good for society

So, assuming we accept (at least) his first solution, what do you need to do to treat customers really well? Here are a few thoughts from my side, but feel free to add your own ideas below:

#1. Really value the customer

When I was younger I was very house proud, but these days I prefer surfing to dusting! That is one of the reasons why I have a Dyson vacuum cleaner; it gets the job done more easily and speedily and without too much mess or effort. You can therefore understand my frustration when the turbo brush stopped working. This was the second time in four years that this piece had ceased to function properly; the first time I was told that the newly introduced guarantee didn’t apply to me as I had bought my cleaner before its introduction! I therefore found myself paying a hefty price to replace the brush head.

Imagine my surprise therefore when I called Dyson this week and was told that as I had already bought a replacement brush before, this new one was going to be offered to me for free, in appreciation of my loyalty! Talk about being surprised AND delighted. The two-week delay for its delivery, which could have frustrated me, suddenly was no longer an issue; I’ll make do for now.

Dyson understands their customers. They turned a problem – being out-of-stock – into an opportunity to reinforce my loyalty. They clearly value my custom AND my patience and are happy to pay the (small) price in exchange for my continued loyalty. Continue Reading

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