A recent study from CB Insights found that seventy percent of start-up tech companies fail. How did this happen?
Although there are so many reasons why these companies shutter, the analysts noted that 9 of the top 20 reasons for start-up failures were customer-related: not meeting customers’ demands or even ignoring them.
As defined by Business Dictionary, a customer is “a party that receives or consumes products and has the ability to choose between different products and suppliers”. Customers can jump from one brand to another or from one company to another. They have all this freedom in the world. But what can make them really stay with a company? It’s when they know that they are being heard, understood, and prioritised.
Loyal Customers Are Crucial
“Loyalty cannot be blueprinted. It cannot be produced on an assembly line. In fact, it cannot be manufactured at all, for its origin is the human heart-the centre of self-respect and human dignity. It is a force which leaps into being only when conditions are exactly right for it-and it is a force very sensitive to betrayal.” – Maurice Franks
Did you know that loyal customers are worth 10x as much as their first purchase?
Think of your customers like your best assets, your indestructible foundation. Without them, a company would be nothing! Loyal customers are crucial to the success of any business, big or small.
If you want your customers to repurchase again and again for over a long period of time, give them what they want and make them feel appreciated. And how do you do this? Make sure you care about them, you address their needs, and you deliver your promises.
According to Microsoft, 96% of consumers worldwide say customer service is an important factor in their choice of loyalty to a brand. Also, some research says that acquiring a new customer is 6 to 7 times more expensive than it is to keep an existing one. So if you want to obtain lifetime customers, do all your best to look after them and don’t get tired in satisfying their needs.
Poor Customer Service Can Negatively Impact the Business
“Merely satisfying customers will not be enough to earn their loyalty. Instead, they must experience exceptional service worthy of their repeat business and referral. Understand the factors that drive this customer revolution.” – Rick Tate
First impression lasts. This is absolutely true with customers who had previous good or bad experiences with a certain product or company. Customer service experiences have a long-lasting effect, and the more negative the experience is, the longer it will stay to a person’s memory and share the story with other people.
So, if you think poor customer service won’t greatly affect your business, think again! Here are some customer service statistics you can’t afford to ignore:
- Customers with past good experiences are 3.5x more likely to repurchase and 5x more likely to recommend the company to other people than if they have previous bad experiences. (Temkin, 2018)
- 95% of customers tell their friends or relatives about a past negative experience and 87% share positive experiences. (Zendesk, 2013)
- 89% of consumers switch to a competitor because of a poor customer service experience. (Harris Interactive)
- Globally, 59% of consumers have stopped doing business with a company following a poor customer service experience. (Microsoft, 2017)
With the information above, it’s easy to see why customer service experience can make or break your business. With an amazing experience, customers will stick with you no matter what. But with a poor one, you can lose them in a snap of a finger.
Difficult Customers Hones Customer Service Skills
In business, encountering a problematic customer can happen anytime. Every customer is different, and this is expected. Some are understanding while others are just, let’s face it, rude and very hard to please.
Whether the customer is angry or rude, the company should not ignore them. Solve the issue in a timely and appropriate manner to avoid damaging backlash. Know that unhappy customers can spread negative reviews in just one click of the mouse and damage the company’s reputation.
The good news is that company owners and leaders can take advantage of the situation and use it as an inspiration to improve their customer service department. As Bill Gates said, “Your most unhappy customers are your greatest source of learning.”
Customer Satisfaction is a Competitive Advantage
Recent surveys of top managers show that customer satisfaction is the number one priority, with 89% of company leaders seeing customer experience as a key competitive differentiator. Customer Expert Prof. Steven Van Belleghem noted that business leaders must view customer relationships as a fundamental factor in their company’s future success.
According to the management consulting firm CX Solutions, the formula for achieving customer satisfaction is:
Doing the job right the first time + Effective Customer Service = Satisfaction
Doing the job right the first time is only achievable when you know what your customers want in the first place. One of the best ways to accomplish this is by creating a detailed buyer persona. A persona is a fictional representation of your ideal target buyer, which includes thorough research, online surveys and customer interviews. This helps you analyse what your customers are looking for in your product/company and what areas need to be improved.
To learn more about creating your Buyer Persona, READ: Why Personas Are Important to Your Products
Effective Customer Service results from addressing customers’ needs and providing them with useful information or recommendations for new products and services. CX Solutions added that once this is achieved, it can have a huge impact on the customer’s overall service experience.
When these two factors are successfully combined and implemented, you can expect more new customers to come as old ones continue to stick around. Your support team is happy. Customers are happy. Everything is doing well.
Strengthening Customer Relationships is Key to a Successful Business
Customer-centric companies stand out in competitive industries. Do you know why? It’s because they go above and beyond to identify and fulfill the needs of their customers with the products and services they offer. They excel in providing great customer care and service. For these companies, customers are the heart and soul of their business. This isn’t part of a strategy, it’s a culture.
Your business can also do the same!
If you want to improve your customer care knowledge, we at Life Intelligence Group can help. We use advanced Agile techniques to help you identify the best strategies to achieve great customer experience and satisfaction. Visit our website: https://www.lifeintelligencegroup.com/ to learn more!