How many times have you come off a phone call, left a shop, or
finished reading an email, and thought ‘Wow! What great customer
service!’?
Not many, I’d guess.
Real noteworthy service has unfortunately become the exception rather
than the norm. That’s why it can make all the difference in highly
competitive markets. In fact, the U.S Chamber of Commerce estimates that
68% of customers who leave a company do so because they feel
undervalued.
Clearly, the way you treat your customers has a huge bearing on the
loyalty they show to your business in the long term.
Sadly, many companies forget this, especially during difficult
economic times. When faced with a recession, businesses tend to
prioritise sales over customer service, regarding their sales department
as the arm of the business that brings in revenue, while customer
service is seen as non-profit making, and therefore expendable.
The problem with this approach is that it ignores the vital role that
customer service plays in generating continued consumer loyalty, and,
as a result, revenue.
Concentrating on sales may bring in more revenue in the short term,
but if you lack the resources to service these new customers correctly,
they probably won’t stay with you for very long. Furthermore, existing
customers may feel undervalued and subsequently move to your
competitors, forcing you to put even more costs and resources into
customer acquisition to replace them.
Business research company Gartner estimates that it’s around five
times as expensive to acquire a new customer than it is to retain an
existing one, so it makes clear financial sense to concentrate your
efforts on keeping the customers you already have. Happy customers also
provide an invaluable asset in promoting your business through word of
mouth, helping you increase revenue without increasing your acquisition
costs.
Retaining customers does not have to be an expensive process, and
there are several simple methods you can employ to keep customers happy
and generate long-term loyalty.
Firstly, don’t make claims about your product that you can’t back up.
You will only serve to heighten expectations to a level that you cannot
service, resulting in your customers feeling frustrated and
disillusioned. Investing in the resources to ensure complaints or
questions are quickly resolved is also hugely important. The longer it
takes you to answer a customer’s query, the longer you give them to find
an alternate company to do business with.
Simple acts like sending your existing customers rewards or
incentives to shop with you again is a great way of generating sales and
increasing loyalty. This can be done through regular email
communication, creating another touch-point with your customers. Asking
for feedback is also a great way to show your customers that their
opinions matter to your business, and that you’re listening to their
concerns. It also allows you to see your business through their eyes, so
you can examine where your company is meeting expectations, and where
it has potential to grow in the future.
