The keys to customer retention
There are two main reasons an organization is likely to lose customers; the competition has a better offer or the customer is unhappy. Even the smallest interruption on a day a customer is stressed, in a bad mood, or just in a hurry could mean the difference whether he returns as a client at a later time. Today’s economy and sharp competition therefore demands excellence and consistency. Even though a company might offer the best price around town, if service is shoddy the customer is likely to leave. A business can not compensate in one area for another area of weakness, or rather who wants to buy a product even if it’s a great deal if there is no one at the company to help if something goes wrong?
Customer retention relies on two distinct platforms. First there is the relationship with the client. We need to understand and know our clients, which includes their expectations, what satisfies them, their geographic locations, and their likes and dislikes. The easiest way to figure this out is through surveys which analyzes a customer; builds a profile, builds models of their preferences, and often can predict problems before they even happen.
Customers of service industries will buy more from year to year, thus reducing costs because the repeat business of the client continues to help a business grow. Loyal, happy clients often will pay more; overnight stays at the Ritz Carlton. In addition, there is the benefit of good publicity, social media, and word of mouth. Here are some suggestions to improve client relationships:
- Always keep your promises. Deliver on time, call back, email back, and solve problems.
- Make sure all levels of management have the same customer-centric attitudes.
- Acknowledge a customer’s intelligence, and respect them. Customers don’t want to be embarrassed, lectured, corrected, or have an agent express a “know it all” attitude.
- Be educated about your products and services through lectures and training sessions so you can be a competent source of information.
- Perform better than your competition.
- Don’t let any customer just walk away, and look for the warning signs. Track customer purchases and note when the customer has reduced their business. Find out why, and fix it.
- Reward sales people for client retention.
- Value client opinion.
The second platform is the expectation of the product or the service itself. Even the best customer service isn’t going to build client retention without outstanding goods. Here are some of the expectations:
- The quality of the products or services must live up to the expectations promised by the organization.
- Every department has to be involved in the presentation, delivery,and function of the product. From explaining everything starting with turning the product on to trouble shooting,each department and customer service has to be made available.
- Every department has to be available for follow-up. Most things go wrong at the very beginning, and rapid assistance can make all the difference in the world to customer retention. Generous warranties, easy return policies, and money-back guarantees build customer confidence.
- Correct design mistakes or service interruptions.
It’s much more expensive to find new clients rather than maintain the valued customers already happy and satisfied. There’s no shortage of competition, so striving for the best can make a profound positive effect in customer bonding.
photo credit: zoetnet
According to Strativity Group Customer Experience Management, which provides customer experience services, a recent Sydney, Australia study found 48 percent of executives increasing their investments in customer experience over the past three years by at least ten percent. This acknowledges the benefits of building positive and meaningful experiences around the customer; in other words developing the customer-centric approach.
According to US News and World Report Travel, Atlanta-based Delta Airlines scored the worst of major airlines with the dubious honor of ranking first in delays. It had the largest drop in customer satisfaction in a twelve-month period when only 78 percent of their flights arrived on time. Trailing with similar complaints were United, Alaska Airlines, American, and US Airway.
The typical customer training course teaches agents what a customer wants or doesn’t want and highlights the common mistakes committed by new and experienced agents. The course traditionally goes on to warn agents about the possible negative impact on the company and business. It highlights the need to smile, help fellow workers, delegate projects as a team player, and have a positive outlook. Many agents politely listen, but consider the training course just a supplement to common sense. How do we then make it more interesting and applicable?
Coffee giant Starbucks is changing its hiring, recruiting, and training methods to encourage employees to become more involved in their careers and their communities. Applicants who want to volunteer and work on their personal development which shares a commitment to community work will more likely be offered new careers as “partners.” Prospects will also be judged on their conversational skills as well as their coffee skills.
Every company needs a motivational vision; what you want your company to ultimately become. Training customer service representatives to understand and value what the organization is seeking will provide that sense of purpose, enthusiasm, and commitment; it just requires a meaningful platform to be used in a successful training program.
For the last 30 years, traditional customer service recruiting, training, core skills, and performance management have not changed dramatically. Service professionals and their management teams have been able to hone the delivery of customer needs through various channels. But are the same attributes that make a great traditional customer service representative applicable for Social Customer Service?
I was pulling into my office this morning when I heard a Zappos commercial on the radio. The purchaser told the customer service representative she had to return merchandise she received yesterday because she was “emotionally unable to handle” the new dress she just purchased and had not touched the box, and had left it lying in the garage. The pleasant voice on the Zappos end assured her that she could return the dress, and there would be no delivery or return charges; just that the customer would have to “touch” the box to return it.