If you need to restore customer satisfaction, it’s likely that you may have unfortunately failed your customers in some way. Show
It may be that your company’s customer service has failed to meet the expectations of your customer, and they feel mistreated or unappreciated. Or could it be your service or product simply not doing what you’ve advertised? An issue with billing? costing customers time and/or money? or implementation failing to go smoothly? McKinsey found that customers who are unhappy will tell between 9 and 15 people about their bad experience, and 13% of these unhappy customers will talk about this experience with more than 20 people. It also takes 12 positive experiences for companies to make up for one negative experience. A survey by American Express found that a huge 78% of customers have backed out of a purchase they were intending to make due to a negative customer experience. This can greatly affect the reputation of your business, and since customer satisfaction is linked to repeat purchases and increased revenue, it should be your top priority. It’s also important to note that a typical business will only hear from 4% of the customers who are disappointed. People are busy, and 96% won’t say anything, while 91% will simply never come back. Turn that frown upside down The good news? It’s possible to resolve the problem and make a customer feel appreciated if handled the right way. In fact, 70% of unhappy customers who have their issues resolved in their favour say they will return. This means that you can use the customer’s negative experience to build customer loyalty and show them you care. Here are some ways to restore customer satisfaction and turn a negative experience into an opportunity to create a happy and loyal customer: 1. Be courteousThe first step is to ensure that your employees are treating all customers with dignity and respect. There’s little point in solving a customer’s problem if they’re being treated rudely or indifferently, since the relationship will still be negatively impacted in the process. Business owners don’t redeem themselves in the eyes of their customers simply by fixing a problem, but instead do so by taking the customer’s emotional needs into account throughout the resolution process. 2. ApologiseThis seems obvious, but many businesses fail to apologise to their customers for the bad experience that they’ve had. A simple “I’m very sorry that this has happened to you Mrs Smith, and I’m going to make sure this is quickly sorted out”, will go a long way to rebuilding trust. Research by Gallup found that genuine apologies can strengthen the emotional bond that a customer has with a company, meaning they’re actually more emotionally connected with the business than customers who never had a negative experience. Even when your business isn’t at fault, and the problem is because of a misunderstanding on the customer’s part, it’s important to still apologise so that the customer can feel that your company cares. 3. Acknowledge the problemCustomers who have had a problem with your company are naturally frustrated, and often want an opportunity to vent and tell you or your employees how this problem has made their life harder. It’s crucial that you teach staff to give customers this opportunity and actively listen to what the customer is saying, putting themselves in the customer’s shoes. Giving customers a believable, clear explanation about why the problem happened can also go a long way towards mollifying them. 4. Immediately handle the issueCustomers who have their problems resolved the first time they contact a company will improve their perception of that company. A study by TARP, Inc. found that when it came to customer complaints, 95% of those customers would stay loyal if their complaint was dealt with sufficiently during the first contact. This dropped to 70% if it took more than one contact for the complaint to be resolved. If the customer service team can’t give customers a resolution immediately, it’s important that they let the customer know that they’re handling the situation and advise them of the steps they’re taking to get it sorted. The longer it takes for issues to be resolved, the more annoyed customers get, and the greater their perception of unfair treatment. 5. Provide compensationWhen your company is at fault, providing some compensation in the form of product samples, coupons, gift cards, refunds, free merchandise, discounts or something similar, can delight your customer and increase the chances that they’ll tell others about this positive experience. A gift voucher can also ensure that the customer returns again, ensuring that you have another opportunity to wow them with excellent customer service. Customer goodwill is borne from having a “customer first” mentality. It helps companies expand their customer base and retain their most loyal customers. Here's how to get started.By Halona Black, Contributing Writer Published July 13, 2021
Doing business with a company that misses the mark on providing a high-quality customer service experience goes a step further than leaving a bad impression; it can keep the customer from ever giving your business a second chance. According to recent research, roughly 73 percent of customers will stop patronizing a company after only three (or fewer) bad customer service experiences. What’s worse is that companies are losing revenue without a chance to find out why. Less than half (44 percent) of survey participants make a formal complaint with the company because leaving feedback is too much of a hassle. In general, it’s only those customers who have the strongest complaints that go through a formal process to speak to a customer service representative. This is why fostering customer goodwill should be at the top of your management team’s list of priorities. What is customer goodwill?Customer goodwill is borne from having a “customer first” mentality. When you put the customer at the center of the experience, it creates a return on investment that is sometimes an intangible, yet strategic part of a company’s success. Examples of customer goodwillIn business, your reputation is everything. And if you have a reputation for creating customer goodwill at all costs, then you’ve started to develop a foundation that will build strong customer relationships over the long term. Of course, not every company is able to go as far as legendary brands like the Ritz-Carlton, whose employee famously returned a forgotten stuffed giraffe to a guest’s son. In practice, customer goodwill can be fostered through customer appreciation programs that go above and beyond to please your ideal client. Some notable customer loyalty programs include the points program at Marriott, tier-based programs at DSW, and mission-driven programs at Ben & Jerry’s. While customer goodwill can be difficult to measure, it is often reflected in the way a customer feels when they interact with your employees, visible in a smile, or by the “thank you” at the end of an interaction. It can be heard in the language customers use to describe their experiences with your brand in testimonials, on social media, or when a customer refers your business to a friend. In this way, customer goodwill is often an intangible asset, something seen and felt whenever present.
Why customer goodwill is importantFailing to create a system that emphasizes customer goodwill puts a revenue strain on a business. No matter the industry, it takes a company ten times the amount of effort to attract new customers than it does to tend to the customers who are already being serviced. Having a reputation of customer goodwill can override a customer’s tendency to run elsewhere and encourage them to buy more from you, even when your product or service does not meet expectations. In fact, 2021 research from Zendesk shows that 75 percent of customers are willing to spend more to buy from companies that give them a good customer experience. Simple solutions to the top CX challenges of 2020Dive deeper into delivering an excellent customer experience. Get the report 3 ways to build goodwill with customersSo, how can your company build a reputation for customer goodwill? Let’s dive into the different ways you can foster positive customer relations that will benefit your business’ bottom line.
How can you measure customer goodwill?Due to the intangibility of the concept, you may not tend to think of ‘goodwill’ as a viable asset or as directly impacting your revenue and profit margins. But customer goodwill needs to be a foundational element of your long-term strategic business plan. While there really is no universal way to measure what customer goodwill should look like, what you can do is steadily measure customer satisfaction after each service interaction and consistently gauge brand sentiment through a Net Promoter Score. You can also take stock of whether you have Voice of the Customer listening programs in place, loyalty programs, or other means through which you’re collecting—and more importantly, acting on—customer feedback. Building goodwill takes time, but the good news is that your business can decide how best to foster and expand customer goodwill with your clients. And it often starts with your team of customer service agents who are actively tracking the satisfaction of the customers with each interaction. Simple solutions to the top CX challenges of 2020Dive deeper into delivering an excellent customer experience. Get the report Related storiesArticle | 4 min read Retain your customer base through a recessionDuring an economic slowdown, there are steps you can take to maintain, and even grow, your existing customer base. Deepen customer relationships by delivering seamless, personalized CX on all channels.
Article | 4 min read Make the holiday shopping season merry with great retail CXThe holiday season is upon us, and consumers are ready to spend. Here's what retailers need to consider to create better CX during the busiest time of the year. White Paper 5 things you can do now to create better retail CXAfter a holiday season that was challenged by excess inventory, supply chain issues, and staffing shortages, retailers are taking stock of last year’s sales—and looking for ways to improve the outlook for 2023. Article | 5 min read 5 top reasons why retailers need an endless aisle solution nowAn endless aisle can turn a frustrating shopping experience into a positive one. Here's how retailers can use it to boost brand loyalty and drive business growth. What is the best way to gain the goodwill of customers?3 ways to build goodwill with customers. Establish customer loyalty. ... . Use data to meet customer expectations. ... . Improve the long-term value of your business with quality customer service training.. How can a company recover customer goodwill?Here are some ways to restore customer satisfaction and turn a negative experience into an opportunity to create a happy and loyal customer:. Be courteous. ... . Apologise. ... . Acknowledge the problem. ... . Immediately handle the issue. ... . Provide compensation.. What are the 4 steps to service recovery?The 4 Basic Steps to Customer Service Recovery. Apologize. Go beyond an apology and ask for genuine forgiveness. ... . Review. Before solving the problem, make a collaborative review of it with the help of the complainant. ... . Fix and Follow Up. This crucial step is where the action really starts to take place. ... . Document.. What are the 4 steps to service recovery quizlet?Service performance that falls below a customers expectations in such a way that leads to customer dissatisfaction.. Encourage and Track Complaints.. Learning from Recovery Experiences.. Learn from Lost Customers.. Make the Service Fail-Safe - Do it right the first time!. |