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In a global marketplace, competition is stiff. It's hard enough to get the attention of your prospective customer, but once you have it, you don't want to lose it. This kind of drain can mean the end of your business. Any small business owner knows that the life's blood of their business is loyal customers. It is well worth the trouble to keep your customers happy and have them continue to give you their business. When they are satisfied, they naturally tell others about you. This is business growth.
So if you find that you're losing customers, also known as customer attrition, alarm bells should be ringing. This is a matter for immediate attention.
It is known that small businesses in the U.S. lose up to 25% of their customers every year. That's a significant percentage for any business, but especially for small businesses. Of course, many of those losses are being replaced by new customers, but if you can't keep customers, your business can't grow at a significant rate.
No matter how fantastic your goods or services are, you can't afford to have poor customer service. Here are a few things you may not have known about customer service.
Related: 15 Ways to Streamline and Improve Your Customer Support
Maintaining your customer base is less expensive to your business than going out and getting new customers. Repeat customers spend more with you than do new customers - 67% more! Investing in customer service will pay off in happy customers who tell their friends and colleagues about you.
Your customers are willing to pay more for your goods or services if they know that customer satisfaction is a priority to you. After a good customer service experience, customers will spend more on that business. We found that 86% of customers will pay 25% more for a positive customer service experience.
Every business needs to stand out and be seen among the competition. Excellent customer service is a great way to differentiate your company from the rest. After only one bad customer service experience, 60% of customerswill leave and not return. If you can master customer service, you will not only keep your customers, but you can also draw away your competitors' customers.
Simplify your customer experience and operations with StartingPoint. Contact us today!
Proactive customer service is when you reach out to your customers with solutions they didn't request. For instance, your customer orders something from you, but it isn't in stock. Instead of just telling them you don't have it, you locate the exact item in another location and get it to them. This action will delight your customers and provide you with marketing opportunities.
Getting ahead of your customers' issues before they arise (or after the fact) is an excellent way to introduce and promote new goods or services. For instance, you have developed a solution for a past issue with your product or service. Your customer service team can locate (via your CRM or ticketing system) customers who had this particular problem and tell them all about the solution.
We have established how important good customer service is to your business. Here are a few things to consider, beyond customer service, to keep loyal customers.
Related: 15 Best Practices For Improving Customer Support
It's natural that setting prices for goods and services is a primary focus as a small business. But being the 'cheap option' isn't always a sound strategy for business. If you keep your prices very low to be more competitive, it will squeeze your margins and make it hard to increase prices when you inevitably need to.
A better strategy is to focus on providing value to your customers. Value comes from consistency, service, accessibility, schedule and opening hours, and quality.
Give your customers incentives to stick with you. Discounts and promotions are great ways to inspire loyalty, but so is showing appreciation. Think about sending out birthday cards to your customers, holiday greeting cards, the occasional feedback card, or even feature them in your newsletter. Making people feel seen and appreciated will go a long way in making them loyal to you.
Today, the technology you employ in your business is a reflection of how innovative and imaginative you are. Customers will not appreciate slow checkout processes or limited options for payments - on and offline. Your customers have high expectations and a low tolerance for inefficiencies.
Using old technology will leave them thinking that you are behind the times in your thinking, and they will lose faith in you and your business. There are so many options for people searching for goods or services. Don't do yourself the disservice of thinking you're the only game in town.
Research new technologies and use them to make your business better, your service more efficient, and give your customers' a more fulfilling experience. Have a social media presence, and make sure your website is up to date and easy to navigate across mobile devices, as well as PCs.
There is a relationship between customer satisfaction and employee satisfaction. If your staff isn't happy, likely, your customers aren't either. It's crucial to your business that your staff is motivated to do a great job every day. You can incentivize this by offering sales rewards and bonuses. Your staff will also feel energized to make sales and provide good customer service when they are appropriately equipped for the job, well informed of the products or services they offer, and have your backing to resolve customer issues.
Related: The Pros and Cons of 7 Types of Customer Service
Not every customer will stay with you for life. That's normal and to be expected. But that doesn't mean you shouldn't do all you can to keep them. It costs less to keep your current customer base, they will bring their friends and colleagues to your business, and they will spend more on your goods or services - especially if the customer service experience is an excellent one. Customer loyalty is worth the investment.
Our customer service solutions can be deployed and customized in an hour and are simplified for non-tech companies. Contact StartingPoint.
