The Customer Retention Goldmine: How to Keep Customers Happy and Drive Exponential Growth

Customer retention is essential for the long-term success of any business. 

We all know that happy customers are more likely to make repeat purchases, provide positive reviews, and refer others to your business. But how do you keep customers happy?

Here are some of the best strategies to retain your customers. Check them out and apply any you are not currently actioning, to enjoy improved growth for your business:

 

1. Provide Excellent Customer Service: This is the starting point if you want to keep your customers happy. Offer fast, helpful, and personalized support whenever they need it.

Respond to inquiries and complaints quickly and resolve issues to the best of your ability.

In fact, go beyond just satisfying them, and find ways to surprise and delight them with a little added and unexpected attention. (more on that later)

  • Customer service is a critical aspect of retaining customers. According to HubSpot research, 93% of customers are likely to make repeat purchases from companies that offer excellent customer service.
  • On the other hand, 33% of customers would consider switching after just one instance of poor service according to American Express.
  • Responding to customer inquiries within an hour can increase customer retention rates by up to 56% (Harvard Business Review).
  • Nearly half of all customers (46%) expect companies to respond to their emails within 4 hours, while 12% expect a response within 15 minutes or less.
  • However, 90% of customers view an instant response as either crucial or very important when they need customer service assistance. Of these, 60% consider instant to mean within 10 minutes or faster.

 

2. Build Strong Relationships: Engage with your customers on social media, through email newsletters, or other communication channels. Show appreciation for their business and make them feel valued. Businesses that build strong customer relationships are likely to see increased loyalty and repeat business.

  • According to a study by Bain & Company, increasing customer retention rates by 5% can lead to a 25% to 95% increase in profits.

 

3. Consistent Communication: Keep your customers informed about new products, promotions, and updates. Regularly engage with them to maintain their interest. Find ways to keep them involved with your brand even when they are not consuming/using it.

  • Consistent communication helps to keep customers engaged and informed about your products and promotions. Brands that communicate with customers regularly witness a higher retention rate compared to those that do not (SuperOffice).

 

4. Quality Products and Services: Deliver high-quality products and services that meet or exceed customer expectations. Satisfied customers are more likely to return.

  • High-quality products and services contribute significantly to customer satisfaction. A study by the Customer Contact Council found that customers who had the best past experiences spend 140% more than those with poor experiences.

 

5. Loyalty Programs: Implement a loyalty program that rewards customers for repeat purchases. Offer discounts, exclusive offers, or points that can be redeemed for future discounts or free items.

  • Loyalty programs can boost customer retention. According to a study by Bond Brand Loyalty, 73% of consumers are more likely to recommend brands with good loyalty programs.

If you’d like to learn more about our online Mastermind course and in-person training on adopting a customer-first strategy and improving your customer retention, please book some time for us to discuss your needs or click the link below.

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6. Personalization: Use customer data and preferences to tailor your offerings to individual needs. Personalized experiences make customers feel understood and appreciated.

  • Personalization can lead to increased customer satisfaction. A report by Epsilon found that 80% of customers are more likely to do business with a company that offers personalized experiences.

 

7. Ask for Feedback: Seek feedback from customers to better understand their needs. Use surveys, reviews, or feedback forms to collect valuable insights and address any issues. Just make sure you don’t overload the questionnaires or ask for more information than you need.

  • Asking for feedback shows that you care about your customers’ opinions. Companies that actively seek customer feedback have higher customer retention rates compared to those that don’t (Vision Critical).

 

8. Customer Feedback Implementation: Act on the feedback received to make improvements to your products, services, or processes.

  • Acting on customer feedback and making improvements based on it can lead to increased customer satisfaction and loyalty.

 

9. Create a Seamless Experience: Ensure a smooth and hassle-free customer experience across all touchpoints, from browsing your website to making a purchase and receiving support.

  • A smooth and seamless customer experience can lead to higher customer retention rates. Research by McKinsey & Company indicates that customers who have the best experiences across all touchpoints are three times more likely to recommend a brand.

 

10. Surprise and Delight: Occasionally, surprise customers with unexpected rewards or gifts to exceed their expectations and create a positive impression.

  • Surprising customers with unexpected rewards or gifts can create positive emotions and foster loyalty. According to a survey by HelpScout, 94% of customers are likely to be loyal to brands that provide a great customer experience.
  • Moreover, 56% of customers say they have higher brand loyalty when companies show them a genuine understanding of their needs (Salesforce).

 

11. Stay Competitive: Stay up-to-date with market trends and competitors. Continuously improve your offerings to stay relevant and appealing to customers.

  • Staying competitive is crucial to retaining customers. Research by Deloitte found that 47% of customers are likely to switch to a competitor after a single negative experience. Therefore, monitoring market trends and analyzing competitors’ offerings can help you stay ahead in customer satisfaction and loyalty.

 

12. Educate and Add Value: Provide valuable content through blogs, tutorials, or educational resources that align with your products/services. This establishes your authority and builds trust with customers.

  • Providing valuable content and educational resources can enhance customer retention. A study by Demand Metric revealed that content marketing can generate three times as many leads as traditional marketing, leading to increased customer engagement and loyalty.

 

13. Community Building: Foster a sense of community among your customers, where they can interact with each other and share their experiences. This can be through forums, social media groups, or events.

  • Building a sense of community among customers can contribute to their loyalty. According to a report by CMX and Leader Networks, customers who feel a sense of community with a brand have a 28% higher loyalty rate.
  • Furthermore, 64% of customers with an emotional connection to a brand are more likely to be loyal, according to a study by Motista.

 

14. Offer Flexible Return Policies: A customer-friendly return policy can instil confidence in buyers, knowing that they can return products if they are dissatisfied.

  • A customer-friendly return policy can significantly impact customer retention. Research by Invesp indicates that 92% of customers are likely to buy again from a company with an easy return policy.
  • Moreover, 67% of customers review the return policy before making a purchase (Narvar).

 

15. Solve Problems Proactively: Monitor customer behavior and identify potential issues before they become significant problems. Address them proactively to prevent customer churn.

  • Proactively addressing issues can help retain customers. A study by CustomerThink found that customers who had their complaints resolved quickly were 82% more likely to repurchase from the same company.
  • In addition, customers are likely to share a positive experience with an average of 9 people (American Express).

 

Remember, customer retention needs to be an ongoing effort if you are serious about growing your business. You must be continuously analyzing customer data, monitoring feedback, and then adapting your strategies based on your findings. Constant adjustments as your customers change behaviours ensure a positive and lasting relationship with them.

 

Don’t forget that we have both an online Mastermind course and in-person training on adopting a customer-first strategy and improving your customer retention. Why not book some time for us to discuss your needs or click the link below?

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The New Qualities for Customer Service Excellence

The covid pandemic clearly highlighted those companies that truly care about their customers and which provide customer service excellence.

If a company claims to be customer centric then it is essential that they don’t just talk the talk, but walk the talk too. The pandemic gave many people more time to review from whom they bought and what services they were getting in return.

A few years ago I was prompted to question my own purchase decision of cable services from the Swiss company UPC-Cablecom. It had been known to have a  long-term deficit in customer service excellence versus its main competitor Swisscom. And as recent PWC research shows, 86% of buyers are willing to pay more for a great customer experience.

Swisscom has made customer service their MSP (main selling point or value proposition) and they were renowned for putting their customers first. UPC-Cablecom, on the other hand, had until then, been trying to win customers through non-stop promotions and aggressive price cutting. In today’s connected world, especially where the internet is concerned, dissatisfied customers will be quickly heard – across the net.

Back to the incident that prompted this post. After a few days of being ignored by UPC-Cablecom – my perception at least, because my emails and phone calls were not being answered – I’m somewhat embarrassed to say that I resorted to Twitter.

It is more than five years ago that Twitter was first referred to as today’s customer service centre. Social media usually guarantees a quick response, since contacting customer services through the usual channels often results in no reaction for hours if not days.

[bctt tweet=”Social media usually guarantees a quick response, since contacting customer services through the usual channels often results in no reaction for hours if not days. #CustomerSatisfaction #CustomerCare #CallCentre #CRM #CEX” username=”Denysech”]

 

What makes a great customer care centre?

Customers these days expect a response in minutes or hours rather than days. Research shows that nearly a half of all customers (46%) expect companies to respond faster than 4 hours, and 12% expect a response within 15 minutes or less. And yet the average time to respond to customer service requests is currently 12 hours and 10 minutes! How does your own customer service response times compare? As you enjoy my blog posts I assume they are significantly better.

Most call centres are a frustrating, if sometimes necessary, experience for (often dissatisfied) customers to endure. In many cases, they are automated, with a long and complex self-selection process of button pushing to arrive at the department one needs – if you’re lucky that is!

But too often the result of all that effort is just a recording telling you to call back later as the department needed is not open at the moment, or that the collaborators are currently busy and to please stay on the line.

We are next subjected to music supposedly designed to calm our nerves, interspersed with messages suggesting alternative solutions to waiting on the line. Going to the website to find a solution in their available FAQs, or to complete a contact form, or to send an email. This I find insulting since I am sure most people only call after having tried to find a solution online – anything so they don’t have to suffer these long waits!

And then, of course, to add insult to injury, we hear the trite message about our call being important to the company! Really? If so you’re not showing it, you’re not walking the talk.

Some companies that have understood their customers’ frustration with long help-line queues, have found alternative solutions such as offering a callback. Of course, providing sufficient staff to cover the busiest times, or at least to be available when the customer is most likely to need support, would be the simplest and most acceptable solution, no?!

Today there is no excuse for a consumer goods company in particular to not be ready to help their users when they need it the most. For example:

  • Early morning or late at night for personal care products
  • Breakfast, lunch and evening meal times for food manufacturers
  • Evenings and weekends for TV and technology products

[bctt tweet=”Today there is no excuse for a consumer goods company to not be ready to help their users when they need it the most. #CustomerSatisfaction #CustomerCare #CareCentre #CustomerFirst” username=”Denysech”]

While in a few cases, a few customers may use Twitter to jump the call centre queues, in most cases, it is only used as a customer’s final cry for help, after being frustrated by long waits on call centre help-lines or self-service selections that led the customer nowhere except around in circles. 

 

What makes a great customer service representative (CSR)?

Taking the customers perspective is the absolute right thing to do for a company. But perhaps we as customers, should also take the company’s perspective when reaching out to them. Or at least that of the poor customer service representative who is subjected to our frustration and anger at the end of our email or phone call.

To illustrate the skills and talents of a great customer services rep, I want to share my experience with UPC-Cablecom. Jimmy N. was one of the very best examples of what a CSR should be, based upon my considerable years of experience on both sides of contact centres. What did he do so well and what might we all learn from him, despite his relatively young age (mid twenties)?

I have summarised below what I see as the most important skills of a customer services representative, that he clearly demonstrated. I call them the 7Ps of customer service excellence.

The new 7Ps of customer service excellence

  1. Private: He immediately took the conversation offline after confirming my mobile number and also asking for my email address. He then called me back to speak in person. This is a win-win for both the company and the customer. It made me feel important as he called me straight back. But it also enabled the company to take my complaints offline and away from the eyes and ears of other current or potential customers.
  2. Patient: He let me talk first. He just listened attentively until I had finished ranting, or when I stopped to ask a question. Sometimes a good listener is all it takes to defuse a potential issue from escalating. The customer wants to be listened to and understood, and in this case, I felt real empathy from Jimmy as I shared my negative experiences with his company’s services.

[bctt tweet=”In customer service, sometimes a good listener is all it takes to defuse a potential issue from escalating. The customer wants to be listened to and understood, and an empathetic ear is a great place to start. #CRM #CEX #CustomerCare #CustomerSatisfaction” username=”Denysech”]

3. Polite: He never lost his cool, even when I did! I admit I would not make a good CSR. I am generally calm, but when I do get angry I really explode, especially when I feel I am being treated unfairly or being taken advantage of. Having reps who can remain calm even when the customer is accusing the company or even their call centre personnel of exaggerated shortcomings, is essential to defuse the emotional tension of the connection.

4. Perceptive: Jimmy empathised with me, and connected very well. He recognised when to push forward with the next topic and when to go back to reiterate what had been agreed. He ensured that I understood the information he was sharing and that I was comfortable with his comments, explanations and proposed solution.

5. Professional: He was an expert; he knew his topic and more importantly how to explain its complex details in simple terms. Have you never called for help and found that you knew more about the topic than the company representative? I know I have on several occasions. As a result, instead of feeling supported, I became even more frustrated, as I was forced to explain my problem in different terms, or in more detail until it was understood.

[bctt tweet=”It is vital that care centre reps are knowledgable and are able to explain complex details in simple terms. Don’t let the customers get frustrated by knowing more than the person they have turned to for help! #CEX #CRM #CustomerCare #CustomerSatisfaction.” username=”Denysech”]

6. Pragmatic: Jimmy worked with me to find a solution that worked for us both. Unlike many call centres where the clear objective is to get you to accept the least costly alternative, I really felt that Jimmy was working with me not against me. I was confident that the solution we found together would be the best one for me and my precise situation.

7. Perseverant: He continued to ask and answer questions until he was sure I was happy with everything. Many companies now add a question at the end of the discussion, asking if there is anything else that we need. However, in most cases, it sounds totally artificial, especially when we have already thanked the CSR for their help and getting ready to say goodbye. I can understand why it is important to make sure the customer is fully satisfied before hanging up, but it would be better if the question is adapted to each individual situation.

Are these the seven best qualities for call centre advisors, or are there more “Ps” that you would add? If you have suggestions, then please add them in the comments below, especially you Jimmy if you read this!

Do you believe that your CSRs could do more for your customers? Then we would love to support you. We know we can help, just tell us where and when. Contact us here and check out our website for more information on our services: http://C3centricity.com/training

This article is regularly updated; the original version was posted on C3Centricity in February 2013.

What Consumer Goods Companies Can Learn From Healthcare. 7 Lessons of Customer Service Excellence

If you work in consumer goods you probably think you have nothing to learn from healthcare, right? After all, you have consumers in your industry name and well healthcare’s reputation is not that great.

But think again. I was recently in a clinic for surgery and was surprised by how customer (patient) centric they are.

I remind my clients that exceptional customer service examples can come from anywhere! So they keep their eyes and ears open and find inspiration everywhere. Do you? If not, then these lessons will come as your wake-up call so you start opening your eyes to new possibilities. Do this every day and your business will only get better.

 

Background

Before I give you the lessons I learned, I think I owe you a little background to what led up to this list.

I had been suffering from a bad back for a while. Unfortunately, not so unusual for those of us who spend too many hours at our desks. However, one morning I tried to get out of bed and fainted as an explosive pain shot down my back to my right foot! I was totally immobilised in three seconds flat!

Now living alone I realised that this was serious as I couldn’t move. Luckily my mobile was by my bed so I called the emergency services who immediately sent an ambulance. I ended up spending a night in a local University Hospital for the first time in my adult life.

However, the story doesn’t end there. Two days later I fell down the stairs because my leg had become partially paralysed. Another visit to the emergency room, an ankle brace fitted, a consultant’s assessment, an MRI scan and finally emergency surgery the following day.

All these experiences of hospitals and doctors gave me the superb opportunity to see the health service from the patient’s perspective. I work a lot with the Pharma industry but luckily have never been a patient, at least until now.

As you probably know, actually becoming your customer and seeing the market from their perspective, is one of the exercises I suggest to better understand them. How often do you do it? Ever?!! You really should, because you’re missing out on a valuable – and free – experience.

Perhaps surprisingly, this incident showed me that many of the practices of the nurses and doctors that I witnessed in my heavily sedated state, are easily transferable to any business. This is why I decided to share them with you.

So here are my seven learnings about customer service excellence:

 

1. Introduce yourself

Customer service excellenceEvery time someone came to my room, they introduced themselves and explained why they were there. Over the course of the days I spent at the hospital and then the clinic, I saw many different doctors, nurses. cleaners, waiters etc. I appreciated that they themselves always started by introducing themselves and stating what their responsibility was in caring for me.

How you can apply this idea: In business, we often forget to introduce people in meetings and when we do, we forget to explain their responsibilities, why they are there.

Perhaps if we did this, there would be far fewer people in meetings, as only those with a real reason to be involved would attend! That already is a time and money-saving idea. But there are even more applications of this idea when it comes to our customers.

Direct contacts with customers, whether by phone, email, chat, social media or in person, deserve the same detailed introduction. This moves the connection from a somewhat cold, professional exchange, to something far more friendly and personal, if not actually personalised.

I often wonder how we so easily forget that customer service is after all just two people connecting and engaging for mutual benefit. Is that how your own customer care centre exchanges feel? If not, how about making them friendlier?

[bctt tweet=”How do we so easily forget that customer service is just two people connecting and engaging for mutual benefit? #CEX #CRM #CustomerService” username=”Denysech”]

 

2. Confirm that you know me

Although I myself saw many different specialists in the university hospital, it made no difference to how I was treated. I felt comfortable that my details had been transferred between the staff members, so they didn’t have to ask me to repeatedly explain what had happened. They also always started by checking my name, to make sure they were speaking with the right person.

How you can apply this idea: While I accept that checking names and wearing wristbands are essential in a medical environment, most businesses could benefit from confirming who their customers are too.

Whether by careful targeting for marketing purposes or by reviewing notes of previous interactions with customer services, a company needs to immediately recognise a (returning) customer.

[bctt tweet=”Whether by careful targeting for marketing purposes or by reviewing notes of previous interactions with customer services, a company must immediately recognise a (returning) customer. #Customer #CEX #CRM” username=”Denysech”]

Have you ever been frustrated when calling back a company only to be asked to explain who you are and why you’re calling? I know I have. It always makes me feel that the organisation doesn’t really care about me. And with automation systems easily available today, there is no excuse for this sort of lack of knowledge.

Personalisation has become essential in all engagements between companies and their customers. In fact, this is one of the most important uses of Big Data, both now and for the foreseeable future.

[bctt tweet=”Personalisation has become essential in all engagements between companies and their customers. This is one of the most important uses of Big Data, both now and for the foreseeable future. #BigData #CEX #CRM” username=”Denysech”]

 

3. Ask if I am happy/comfortable

Whatever the reason was for the medical practitioner to see me, they always asked if I was comfortable. They openly encouraged me to share any negative thoughts, feelings or sensations I was experiencing.

How you can apply this idea: Do you encourage critique of your ideas from your colleagues? It takes a strong and confident person to constantly put themselves up for criticism. Too many people look (only) for positive support when asking for opinions, rather than a truly constructive assessment.

Customer service excellence should involve every employeeMany years ago, one of my first bosses mentioned that when he asked for opinions in a meeting, it was me he listened to the most. Why? Well, not because I knew more than my colleagues. No; it was because I said what I really thought, not what I believed he wanted to hear. Although he didn’t always agree with what I said, he knew that what I said was what I was truly feeling.

Over the years, I came to realise that he was one of a dying breed of true leaders. Many organisations today are political hothouses, where supporting the boss is the only way to keep one’s job!

I hope you are not in this situation because according to a Gallup study, around 50% of employees leave their company to get away from their bosses. If you are in such a situation at the moment, my advice to you is to GET OUT NOW! You will more than likely end up leaving one way or the other, so why waste your time with a boss who lacks this essential leadership skill? You’ll get the support you deserve and more importantly need, to grow, elsewhere.

[bctt tweet=”According to a Gallup study, around 50% of employees leave their company to get away from their bosses. If you’re in such a situation today, my advice is to GET OUT NOW! #Leadership #EmployeeSatisfaction ” username=”Denysech”]

And what about your customers? Do you encourage them to share complaints and ideas? If not, why not? It’s much better to know what’s wrong and put it right quickly, than to continue in blissful ignorance until your customers leave because of it.

Customer experience is negative

According to“Understanding Customers” by Ruby Newell-Legner, you are unlikely to hear from more than just a fraction of dissatisfied customers. And most of those dissatisfied customers will never come back to you. Therefore it makes sense to not only pay attention to complaints but actively search them out – before they damage your business.

 

4. Ask if you can do more

You can always do more to improve customer experience

As anyone who has been to the emergency room of a hospital knows, patience is important. You don’t get seen by order of arrival, but by the importance of your ailment. In other words, if your problem is not life-threatening, you will pass after the road accident, whose victim is more seriously injured. I know this and was happy to actually be left to “float” in a drug-induced relaxation between staff visits.

Whenever they woke me up to “check my vitals” or to inform me of the next tests or treatment planned, they always finished by asking if I had any questions or needed anything else. I was made to feel that nothing was too small or unimportant to them, if it made me feel more relaxed and comfortable.

 

How you can apply this idea: According to the White House Office of Consumer Affairs  “It is 6-7 times more expensive to acquire a new customer than it is to keep a current one.”

[bctt tweet=”It is 6-7 times more expensive to acquire a new customer than it is to keep a current one.” #CustomerLoyalty #CEX #CustomerSatisfaction” username=”Denysech”]

Business, therefore, can no longer afford to merely satisfy their customers, they need to delight them. Do you ask both yourself and your customers what more you can do for them? If you do, you might just find a new product or service concept that answers their desires and gets you ahead of the competition.

 

5. Don’t stop before the end

When I was admitted for surgery, I was told that the average stay was between 6 and 12 days in hospital. Having thought I was there for just a day or two, this came as quite a shock.

As my progress after the operation was good, I expected to leave the clinic within five days. (I always want to be better than average!) However, with the added complication of the torn ligaments in my ankle, the professor had other ideas. I ended up spending ten days there and was then on a month of complete bed rest before starting physio!

How you can apply this idea: As the well-known Napolean Hill quote goes

“Most great people have attained their greatest success just one step beyond their greatest failure.”

Some people are great at ideation; perhaps you’re one of them. However, ideation without action is just day-dreaming.

[bctt tweet=”Some people are great at ideation; perhaps you’re one of them. However, ideation without action is just day-dreaming. So get active today! #Innovation #Ideation #Action” username=”Denysech”]

Therefore don’t think your job is done when you’ve come up with an idea or two. You need to follow up to turn the ideas into actions.

Customer service excellence means involving customers everywhere you canEntrepreneurship is very popular today for both individuals and even within large corporations. However so many entrepreneurs try an idea and when it doesn’t immediately work, they give it up for a different one.

Yes, there have been many huge successes recently, but most “overnight” triumphs have come from years of just plain hard work and dedication.

Therefore, as they say “plan the work and work the plan.”  Did you know that the origin of this quote is unsure, although it has been used by many people? These include Vince Lombardi, Margaret Thatcher, and even Victor Hugo. With such illustrious support, perhaps you could work your own plan a little better, no?

[bctt tweet=”Plan the work and work the plan. #Plan #Action #Learning” username=”Denysech”]

But remember, today’s world is one of constant change, so even if you do plan, remember to also stay flexible and adapt to the changing circumstances of the market or your brand. And never totally give up your plan at the first sign of failure either. Just because one part of the plan didn’t work doesn’t warrant throwing out the whole thing.

 

6. Don’t wait until it’s urgent

As I tried to wean myself off the painkillers, I found myself alternating between extreme pain and none whatsoever. The carers told me that while it’s a good objective to reduce drug usage as quickly as possible, it is counter productive to not take painkillers when they’re needed.

By my deciding to “wait and see” if the pain got worse before asking for medication, I found that the drugs became less effective.

Small, slow steps work better than giant leaps in so many areas because they are sustainable. Think New Year’s resolutions, like crash diets, new fitness regimes, or changes in lifestyle habits. It’s the small, almost imperceptible changes that tend to last and lead to success.

How you can apply this idea: So many adjustments in business involve making significant changes, whether cultural or process-wise. As the well-known saying goes:

“The best way to eat an elephant is one slice at a time.” 

Therefore when introducing large changes within your organisation, break them down into more “humanly” manageable steps. Want to make a radical change in one of your processes? It is often more effective to start by modifying the beginning and the end of the process. The middle steps then adapt automatically as new needs are identified.

For example, in updating your innovation process, start with better identifying the target customers and their needs. Then look how the launch will be rolled out and monitored amongst them. You will quickly realise that brainstorming in a vacuum or testing multiple concepts just before launch is no longer effective – if it ever was! These parts of the process will then be adapted to the new demands.

Time to revamp your own processes? Find out more about our I3: Improved Ideation and Innovation and other 1-Day Catalyst Training sessions HERE.

 

7. It all starts and ends with the customer

During my hospital and clinic stays I realised that the staff were there for me, not vice versa. I am extremely independent and had to learn to accept the help of others, even for some of the most intimate actions. It was “normal” for them, but not for me.

They recognised that and did everything they could to make me feel at ease. From being there just when I needed them, to eclipsing to leave me alone when I needed space. The staff knew and demonstrated that it was I who was important.

How you can apply this idea: Take a look at your website, your communications, your plans; do they all start and end with the customer?

Do you publish content your customers want to read, or just what you want to tell them? Does your contact information include every possible way a customer can connect with you or just a static form and drop-down menu?

Are your communications relevant and emotionally validating for your customers?

Do your plans mention the customer as often as the brand? Remember:

“There may be customers without brands, but there are no brands without customers.”

Do they also show images of customers and include extensive knowledge and understanding about them?

If not, then perhaps you found inspiration for change in the above examples. Take one small step and make one of the changes mentioned; the benefits will be quick to appear.

For more ideas about improving your customer understanding, why not watch the FREE Customer Centricity Champions Webinar? It shares many tips, tools and templates to catalyse your business and improve your customer understanding immediately.

Customers Care About a Product’s Value, Not How the Company Treats Employees

Your customers only really care about themselves and your product’s value to them!

I’ve been a customer champion for most of my career. But with the likes of Richard Branson saying it’s employees first, customers second, my confidence was beginning to slide a little.

Thank goodness, therefore, for some new research from Global RepTrak® that has finally confirmed what I have always believed. Customers care about themselves first and foremost! Everyone else comes second.

Dale Carnegie spelled it out really well when he said:

“People are not interested in you. They are not interested in me. They are interested in themselves – morning, noon and after dinner.”

[bctt tweet=”People are interested in themselves – morning, noon and after dinner.” Dale Carnegie ” username=”Denysech”]

It was the below chart that I first saw on MarketingCharts.com that alerted me to this work by RepTrak™. (I highly recommend signing up for their daily charts by the way; they’re a great source of facts and inspiration!)

 

Customers care most about your product's value
Click to enlarge

 

The article that accompanies the chart is a great read too. However, I wanted to take a look behind these numbers and try to understand why some influencers have been pushing employee centricity.

 

Products And Services Are Key

The first four factors of reputation shown in the graph above are all product related. Therefore it’s clear that customers think about themselves first and foremost. They want satisfaction and therefore it’s a product’s value that matters most. I think that’s normal, don’t you? They are looking for a solution that meets their needs and a company that stands behind what they offer.

Great customer service won’t make up for a terrible product or service offer. So every organisation needs to ensure that what they propose is the very best they possibly can.

[bctt tweet=”Great customer service won’t make up for a terrible product .” username=”Denysech”]

However, it is also true that the quality and value you offer depends to a large extent on the excellence of your employees in delivering it. If employees are not motivated to give their best, then what they deliver will be sub-optimal.

This is why it is essential that everyone within a company understands their role in satisfying the customer.

One of the quickest ways I have found to achieve this is by providing regular access to the customer. Once an employee sees and understands what they can do to increase satisfaction, they are much more likely to do it. After all, it’s absurd to think that they would want their employer to fail, isn’t it? In fact, I have seen a genuine excitement around customer connections whenever I have introduced them within an organisation.

If you’d like to organise your own customer connection sessions then I highly recommend reading “Five Rules of Observation and Why it’s Hard to Do Effectively.”

 

Employees Are An Important Touchpoint

I think it was P&G who coined the phrase “the first moment of truth” in referring to the beginning of the shopping experience. I would, therefore, add employees, at least in retail and other consumer-facing industries, as being a close second. However, the vast majority of products are made by companies that rarely, if ever, come into direct contact with their customers. (sadly true even today, which is why I encourage regular customer connections as I mentioned earlier.)

[bctt tweet=”Most products are made by companies that rarely, if ever, come into direct contact with customers.” username=”Denysech”]

Now it’s true that service industry employees matter to the customers, but even now I’m not convinced they come first. I still think customers will judge a hotel, a restaurant or an airline based primarily on the product’s value, just like any other industry. However, it is obvious that loyalty is impacted by and depends upon the services offered.

[bctt tweet=”Loyalty in the service industry will be impacted by & depend upon the services offered.” username=”Denysech”]

Shep Hyken wrote a great piece on this topic called “Customer Service Means Never Saying Never (But If You Must, Say It In A Different Way)” which I highly recommend. In it, he talks about the customer NOT always being right, but concludes with the old customer service saying:

“You’re not trying to win an argument. You’re trying to win a customer.”

As he says “You really can’t win an argument with a customer. If you “win,” it means the customer has “lost,” and you could end up losing the customer.”

That is why it’s important to hire the right people and then give them sufficient freedom to solve almost any issue for the customer. If you force them to follow a rulebook of acceptable answers, then you will limit their authority to satisfy the customer. They may actually end up saying “we can’t do that” to the customer, which is sure to irritate them and won’t exactly encourage loyalty! After all, isn’t that what customer service is all about, protecting the business’s current and potential customers?

[bctt tweet=”Customer service is all about protecting the business’s current & potential customers.” username=”Denysech”]

 

Companies Should Be Ethical

Going back to the RepTrack report, it is interesting to see that ethical and fair practices score above average, yet treating employees fairly and rewarding them appropriately score well below average. Again this confirms that it is what directly impacts the customer that matters most to them.

An organisation’s impact on society matters more to customers than their fairness to their employees. In other words, it’s the higher order practices of corporate social responsibility that enable the customer to feel good about spending their money with the company.

In fact, recent research shows that CSR has a direct impact on customers’ purchase decisions, especially for women.

[bctt tweet=”Corporate Social Responsibility has a direct impact on consumers’ purchase decisions.” username=”Denysech”]

Customers are interested in CSR

 

Employees Are Still Important

Coming back to Branson’s position about the importance of employees, there is one of his comments that I do support. He said in an Inc interview that

“Unhappy employees can ruin the brand experience for numerous customers.”

[bctt tweet=”“Unhappy employees can ruin the brand experience for numerous customers.” Richard Branson ” username=”Denysech”]

Clearly, this is an extreme situation and management should do everything to treat their employees well; that just makes good business sense. Unhappy employees will impact your product quality and the motivation of others, not just that of your customers.

There have been many examples to confirm this, such as incidents involving FedEx, United Airlines and Domino’s to name just a few. Click on their names to remind yourself of these famous customer service disasters.

More recently the automobile industry has been facing numerous scandals of emissions and fuel economy frauds. It seems that Volkswagen was not an isolated case and since then Opel, Chevrolet/GMC/Buick, Daimler, Fiat/Chrysler, Mitsubishi and most recently PSA and Renault have been scrutinised. Whether these were coordinated, isolated or employee driven is still to be ascertained.

I understand that when you’re in business, your goal is to sell products and services to your customers and make money for your shareholders.

[bctt tweet=”Business sells products & services to customers & makes money for shareholders. ” username=”Denysech”]

However, why don’t employees ever ask the question about the impact of their behaviour on the customers? And if that customer was their wife, daughter, family member or friend, would that make a difference? Perhaps, but it shouldn’t; as human beings, we should want to treat every other person fairly. At least that’s what I believe.

One of the best ways to better understand your customer’s needs is to look at their purchase journey and especially their emotions at each step. I recommend reading “Do You Know Your Customer Journey Map & the Emotions Overlay?” for a review of this topic.

So in conclusion, our customers – and we are all someone’s customer – care firs and foremost about your product’s value to them. Will it answer their needs? Will it be the solution to their problem? I therefore don’t see how there can be any doubt that customers matter more than employees. But I’d love to hear your thoughts on this. It’s just as conflictual and complex as the “chicken or egg” question if you ask me!

 



 

What a Short Hospital Stay Taught me About Customer Experience

Examples of exceptional customer experience can come from anywhere! You know that. You keep your eyes and ears open and find inspiration everywhere. So do I.

But last week, I had the fright of my life. I returned from visiting my family over the festive season, with an ever-increasing pain in my lower back.

OK, so sitting all day is not good for my posture. I suppose I deserve to finally pay for all the hours I spend in front of a screen every day.

Anyway, it got so bad that I visited the doctor on Wednesday, who gave me painkillers, anti-inflammatories and a muscle relaxant. I took them all that evening, but when I got up the following morning, I fainted from a sudden intense pain. A half hour later I managed to crawl out of bed to take my pills, then hobbled back again to wait until they took effect.

A couple of hours later when I tried to get up, I again fainted with the pain, but now also had the new sensation of an explosive flame which shot down my back to my right foot! I was totally immobilised in three seconds flat!

I was in agony, so all I could do was to return to my bed. However, the mattress no longer offered any relief and I whimpered like a tortured animal as I suffered continuously from these now double injuries.

Living alone I realised that this was serious. Luckily my mobile was by my bed so I called the emergency services who immediately sent an ambulance. All this to say that I ended up spending a night in a hospital for only the second time in my life.

However, the story doesn’t end there. Two days later I fell down the stairs as my leg had become partially paralysed. Another visit to the emergency room, an ankle brace fitted, a consultant’s assessment, an MRI scan and finally emergency surgery the following day.

All these experiences of hospitals and doctors gave me the superb opportunity to see the health service from the patient’s perspective. I work a lot with the Pharma industry but luckily never became a patient, until now.

As you probably know, becoming your customer and seeing the market from their perspective is one of the exercises I suggest to better understand your customers. How often do you do it? Ever?!!

I learnt a lot about how to excel at customer experience from all my visits. Surprisingly, many of the practices of the nurses and doctors that I witnessed in my heavily sedated state, are easily transferable to any business. This is why I decided to share them with you.

So here are my seven learnings about excellence in customer experience:

 

1. Introduce yourself

Every time someone came to my room, they introduced themselves and explained why they were there. As the first establishment, I stayed in was a University Hospital, there were tens if not hundreds of staff on duty, so I rarely saw the same person twice over the 24 hour period I was there. I appreciated that they themselves always started by introducing themselves and stating what their responsibility was in caring for me.

How you can apply this idea: In business, we often forget to introduce people in meetings and when we do, we forget to explain their responsibilities, why they are there.

Perhaps if we did this, there would be far fewer people in meetings, as only those with a real reason to be there would attend! That already is a money-saver.

Direct contacts with customers, whether by phone, email, chat, social media or in person, deserve the same detailed introduction. This moves the connection from a somewhat cold, professional exchange, to something far more friendly and personal, if not actually personalised.

How do we so easily forget that customer service is after all just two people connecting and engaging for mutual benefit? (>>Tweet this<<)

 

2. Confirm that you know me

Customer experience includes a deep understanding of the customerAlthough I myself saw many different specialists in the first hospital, it made no difference to how I was treated. I felt comfortable that my details had been transferred between the staff members, so they didn’t have to ask me to repeatedly explain what had happened. They also always started by checking my name, to make sure they were speaking with the right person.

How you can apply this idea: While I accept that checking names and wearing wristbands are essential in a medical environment, most businesses could benefit from confirming who their customers are.

Whether by careful targeting for marketing purposes or by reviewing notes of previous interactions with customer services, a company needs to immediately recognise a (returning) customer. (>>Tweet this<<)

Have you never been frustrated to call a company only to be asked to explain who you are and why you’re calling? I know I have. It always makes me feel that the organisation doesn’t really care about me. And with automation systems easily available today, there is no excuse for this sort of lack of knowledge.

Personalisation has become essential in all engagements between companies and their customers. In fact, this is one of the most important uses of Big Data, both now and for the foreseeable future.

 

3. Ask if I am happy/comfortable

Whatever the reason was for the medical practitioner to see me, they always asked if I was comfortable. They openly encouraged me to share any negative thoughts, feelings or sensations I was experiencing.

How you can apply this idea: Do you encourage critique of your ideas from your colleagues? It takes a strong and confident person to constantly put themselves up for criticism. Too many people look (only) for positive support when asking for opinions, rather than a truly constructive assessment.

Many years ago, one of my first bosses mentioned that when he asked for opinions in a meeting, it was me he listened to the most. Why? Well, not because I knew more than my colleagues. No; it was because I said what I really thought, not what I believed he wanted to hear. Although he didn’t always agree with what I said, he knew that what I said was what I was truly feeling.

Over the years, I came to realise that he was one of a dying breed of true leaders. Many organisations today are political hothouses, where supporting the boss is the only way to keep one’s job!

According to a Gallup study, around 50% of employees leave their company to get away from their bosses. (>>Tweet this<<) If you’re in such a situation today my advice is to GET OUT NOW! You will more than likely end up leaving one way or the other, so why waste your time with a boss who lacks leadership skills? You’ll get the support you deserve and also need to grow, elsewhere.

And what about your customers? Do you encourage them to share complaints and ideas? Why not? It’s much better to know what’s wrong and put it right quickly than to continue in blissful ignorance until your customers leave.

Customer experience is negative

According to“Understanding Customers” by Ruby Newell-Legner, you are unlikely to hear from more than just a fraction of dissatisfied customers. Therefore it makes sense to not only pay attention to complaints but actively search them out – before they damage your business.

 

4. Ask if you can do more

You can always do more to improve customer experienceAs anyone who has been to the emergency room of a hospital knows, patience is important. You don’t get seen by order of arrival, but by the importance of ailment. In other words, if your problem is not life-threatening, you will pass after the road accident, whose victim is more seriously injured. I know this and was happy to actually be left to “float” in a drug-induced relaxation between staff visits.

Whenever they woke me up to “check my vitals” or to inform me of the next tests or treatment planned, they always finished by asking if I had any questions or needed anything else. I was made to feel that nothing was too small or unimportant to them if it made me feel more relaxed and comfortable.

How you can apply this idea: According to the White House Office of Consumer Affairs “It is 6-7 times more expensive to acquire a new customer than it is to keep a current one.” (>>Tweet this<<)

Business, therefore, can no longer afford to merely satisfy their customers, they need to delight them. Do you ask both yourself and your customers what more you can do for them? If you do, you might just find a new product or service concept that answers their desires and get ahead of the competition.

 

5. Don’t stop before the end

When I was admitted for surgery, I was told that the average stay was between 6 and 12 days in a hospital. Having thought I was there for just a day or two, this came as quite a shock.

As my progress after the operation was good, I expected to leave the clinic within five days. (I always want to be better than average!) However, with the added complication of the torn ligaments in my ankle, the professor had other ideas. I ended up spending ten days there and am now on a month of complete rest before starting physio!

How you can apply this idea: As the well-known Napolean Hill quote goes

“Most great people have attained their greatest success just one step beyond their greatest failure.”

Some people are great at ideation; perhaps you’re one of them. However, ideation without action is just day-dreaming. (>>Tweet this<<) Therefore don’t think your job is done when you’ve come up with an idea or two. You need to follow up to turn the ideas into action.

Entrepreneurship is very popular today for both individuals and even within large corporations. However so many entrepreneurs try an idea and when it doesn’t immediately work, they give it up for a different one.

Yes, there have been many huge successes recently, but most “overnight” success have come from years of just plain hard work and dedication.

Therefore “plan the work and work the plan.” (>>Tweet this<<)

Today’s world is one of constant change, so don’t forget to be flexible and adapt to the changing circumstances of the market or your brand. But don’t give up either. Just because one part of the plan didn’t work doesn’t warrant throwing out the whole thing.

 

6. Don’t wait until it’s urgent

As I tried to wean myself off the painkillers, I found myself alternating between extreme pain and none whatsoever. The carers told me that while it’s a good objective to reduce drug usage as quickly as possible, it is counter productive to not take painkillers when they’re needed.

By my deciding to “wait and see” if the pain got worse before asking for medication, I found that the drugs became less effective.

Small, slow steps work better than giant leaps in so many areas because they are sustainable. Think New Year’s resolutions, like crash diets, new fitness regimes, or changes in lifestyle habits. It’s the small, almost imperceptible changes that tend to last and lead to success.

How you can apply this idea: So many adjustments in business involve making significant changes, whether cultural or process-wise. As the well-known saying goes:

“The best way to eat an elephant is one slice at a time.” 

Therefore when introducing large changes within your organisation, break them down into more “humanly” manageable steps.

Want to become more customer centric? Then start with one small step like building your brand personas. (You can download the C3Centricity template for doing thisHERE)

Want to make a radical change in one of your processes? Then it is often more effective to start by modifying the beginning and the end of the process. The middle steps then adapt automatically as new needs are identified.

For example, in updating your innovation process, start with better identifying the target customers and their needs. Then look how the launch will be rolled out and monitored. You will then realise that brainstorming in a vacuum or testing multiple concepts just before launch is no longer effective. These parts of the process will then be adapted to the new demands.


Find out more about our I3: Improved Ideation & Innovation 1-Day Catalyst Training HERE.


 

7. It all starts and ends with the customer

During my hospital and clinic stays I realised that they were there for me, not vice versa. I am extremely independent and had to learn to accept the help of others even for some of the most intimate actions. It was “normal” for them, but not for me. They recognised that and did everything they could to make me feel at ease. From being there just when I needed them, to eclipsing to leave me alone when I needed space, the staff knew that it was I who was important.

How you can apply this idea: Take a look at your website, your communications, your plans; do they all start and end with the customer?

Do you publish content your customers want to read, or just what you want to tell them? Does your contact information include every possible way a customer can connect with you or just a static form and drop-down menu?

Are your communications relevant and emotionally validating for your customers?

Do your plans mention the customer as often as the brand? Remember:

“There may be customers without brands, but there are no brands without customers.”

Do they also show images of customers and include extensive knowledge and understanding about them?


For more ideas about improving your customer understanding, why not join the FREE Customer Centricity Champions Webinar? It shares many tips, tools and templates to catalyse your business and improve your customer understanding immediately.

11 Bad Customer Service Examples
Source: JitBit.com

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