Retaining customers is less expensive than acquiring new ones, and customer experience management is the most cost-effective way to drive customer satisfaction. Loyal customers ensure sales, reduce costs associated with consumer education, and recommend you to their friends.
However, not every customer who regularly purchases your products is loyal to your company. There are many reasons why they repeat purchasing from you:
- You are currently the low cost provider;
- It takes too many efforts or it is to expensive to change suppliers;
- They are used to using your products, and habits are hard to break;
- They may have relationships with one of your employees;
- Your location is currently the most convenient to them;
- You are currently the only available supplier to them;
- There is a contractual arrangement with your company.
All these reasons mean that as soon as a desirable competitor comes around, they may switch to them easily. On the contrary, loyal customers believe that your products and services are superior to those of the competition. They do not seek for alternatives, even when they have options.
Customer loyalty does not mean, that customers are loyal to your company alone. In the real world, customers are more often loyal to several companies, when it is possible. That means that they may tend to purchase brand A 60 percent of the time, brand B 30 percent, and brand C 10 percent of the time. They are loyal to these brands, but not to others, and yet 100% loyal to none. In this case the objective of companies is to make customers as loyal as possible, to maximize customer share of wallet.
Loyal customers may represent no more than 20 percent of your customer base, but make up more that 50 percent of your sales. You need to be communicating with these customers on a regular basis. These people are the ones who can and should influence your marketing decisions. Nothing will make a loyal customer feel better than soliciting their input and showing them how much you value it. Still you need to consider the fact, that not all regular customers are loyal to your company (see the reasons above). You need to be able to classify your customers and identify the loyal ones correctly if you plan to make marketing decisions based on their interests.
Customer service is perhaps one of the most vital parts of conducting business, because every interaction the company has with a customer can affect the business’ bottom line. Establishing a successful customer service program in your business requires commitment from yourself and your staff.
Customer service training for your employees do not just add value for the customer, it can drive sales and give you a competitive advantage. Training on customer service provides higher employee motivation and engagement, improves customer service skills, increases customer satisfaction, reduces employee turnover and increases sales.
To create an effective training program, first of all you need to identify customer’s needs. You need to know what customers expect from your company and your staff. This can be accomplished by setting up a feedback section on your website. Live chat tools also allow customers to leave a feedback, or rate the service. Another method to learn customer’s needs is to conduct a survey.
At the second step you need to evaluate each employee’s skills. The most effective training program should be based on the employee’s current skills. It will allow to fill in the gaps and strengthen weak points.
It is important to communicate the value of the training with your employees. They must be willing to apply the new skills they learned in training. No training program will bring significant results when trainees do not understand the importance and the aim of training.
There are many training methods that may work for your company. You can create a customer service manual, use video and audio records, purchase books on customer service for your corporate library. You can have experienced employees or supervisors shadow new employees. You can also have a professional business consultant or training agency conduct training classes.
Customer service training should not necessarily cost you a fortune. You can start with little things and gain results step by step. It is only important to have a plan to follow.
It is essential that you support your employees’ learning, provide feedback and track progress. Many training programs fail when employers do not show interest in the training results and do not encourage employees to apply their training.
Investing in a customer service training program improves business performance, profit and staff morale. This is what all companies need.
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Today there are almost no industries with no competition. In the highly competitive environment companies have to consider many aspects of their business to survive.
Some companies focus on low price as their main competitive advantage. Now when consumers can easily browse internet for the cheapest offers, companies have to pay attention to their price policy more than ever. When you compete on price alone, you have to dramatically reduce costs. And at some points margins approach zero. E-commerce businesses also have to not only offer low prices but also offer free or low-cost shipping. This definitely does not help to develop your business.
When the price bottom is reached you realize that there should be something else to attract customers. And it is better to realize that before it is too late.
The second step is to offer better value for money. Better product quality may help you win more customers, but even if you sell the best product in the world, this does not guarantee you success.
53 percent of United Kingdom-based retailers surveyed for a recent Econsultancy report, said customer service and customer experience would be the primary way retail organizations will differentiate from competitors over the next five years. That means that price and product are not enough to win the competition race.
Customer experience is now one of the most important aspects of competition, and you need to clearly understand what customer service and customer experience mean.
According to Adam Richardson, a customer experience innovation strategist, “to be really successful on a long-term basis, customer experience needs to be seen as all these things, and more. It is the sum-totality of how customers engage with your company and brand, not just in a snapshot in time, but throughout the entire arc of being a customer.”
Focus on customer experience means that you care about every contact with your customers, no matter when, where and how they happen. Opposite to the price competition, customer service gives you endless opportunities to improve your competitive advantage.
When visiting a retailer’s website, shoppers search for warranty information, pricing, specs/model information, payment/financing information, sales/discounts, availability and shipping information. You can provide all this information in details, and still customers will want to contact you before making a purchase, or after it. Make sure that you are able to assist your customers via all the channels below.
1. Phone support. It is the most popular way of contact. If you offer phone support, make sure that the phone is always answered during business hours, and use voice-mail for off-hours. You need to decide if you want to use a local telephone number, or a toll-free number, depending on the nature of your business.
2. Live chat support. It is the second most popular of contact for offline business. You can provide 24/7 chat support or use a virtual agent for offline hours. Live chat is more convenient when customers need to pass account details, links, screenshots and other information that can be hardly passed over the phone.
3. Email support works when an issue requires time for investigation, or when a case is not urgent. Still the sooner you reply, the better.
4. Facebook and Twitter. Many customers nowadays prefer using social media channels to contact a company. Since public messages are available, you must monitor these messages daily, and provide timely replies. Otherwise your potential customers may think that you do not care about customers inquiries.
5. Forums. It is good to have your own forum where customers may share their experience, but not every business really needs a forum on their website. There are a lot of independent forums dedicated to various topics. You need to find those that are related to your business, and become their contributor. This way you will be able to assist your customers, and also attract new clients.
Providing great customer service means being available for customers when and where they need you.
Statistics says that selling to and old client costs less, than selling to a new client. Though keeping old customers should be one of the main priorities of any business, customers happen to leave.
There are many reasons why customers leave, and sometimes the reasons are not even related to a company’s products or services. But there are a few things that you can do in any case to improve their customer experience.
1. Ask if there is anything that you can do to resolve the situation. Sometimes customers are very emotional about their bad experience, and it may seem that they hate your company and they will never want to come back. But when they calm down, it may turn out that there is a simple solution of the problem, and the customer only wants you to apologize and take measures ASAP. Before your customers leave, make sure if you can do anything or not to change their mind.
2. Do not make it hard. If there is nothing that you can do right now, let them go, and leave the door open. The situation may change and customers may want to come back. You should make it easy for them. Show that they are always welcome.
3. Listen to your customers. Unhappy customers are likely to leave your business, so it is important to know what their concerns are. You may have your own vision of your business, but if your customers are unhappy, you have to be flexible. The best way to keep customers is to constantly improve your products and service, according to customers’ expectations. Even if you have lost a customer, they may come back in the future, when you get the right offer for them.
4. Some customers must leave. Sometimes you do not need to take efforts to keep a customer. Some customers do not belong to your target audience, and they may drain your time and resources, with no profit for you. Do not be afraid to lose them. Still you should be friendly and helpful, and they should not feel unwanted. Recommend some other company, that may suit them better, and they will be grateful. There is a chance that they may become your target audience in the future, or they will recommend you to other clients. Positive impression and friendly relations with your ex-customers are equally important as your relations with current customers.
Customers leave businesses every day, and you need to make sure, that you do not push your customers to leave, intentionally or not.
Extraordinary customer service is not a myth, but it is something that every company can deliver. It does not matter, if it is a large well-known company, or a small local business, what matters most is how you care about your customers.
Here is a couple of popular stories of personal touch in customer service.
This one may turn out to be apocryphal, but the story was all over the place after the launch of the iPad 2. Apparently a man bought an iPad online, then returned it to the company almost immediately, affixing a Post-It to the front of the device that simply read, “Wife said no.” Returns processors must have gotten a kick out of it, because the story eventually made its way to a couple of Apple VPs, who refunded the customer and returned the iPad with an attached Post-It that said, “Apple said yes.”
A family vacationing at the Ritz-Carlton, Bali, was always careful to bring their own supply of specialized eggs and milk because of their son’s food allergies. In this particular instance, however, the food was ruined en route. The Ritz-Carlton manager couldn’t find any of the special items in town, but his executive chef recalled that a store in Singapore sold them. The chef contacted his mother-in-law, who lived there, and had her purchase the items, then fly to Bali (about 2.5 hours) to deliver them.
You can say that big companies can afford that, and small business is not able to give away iPads and deliver food from Singapore. Now take a look at the following example, found on Digital Spy forums.
When I had my wisdom teeth out, I had to get some antibiotics to prevent infection. My dad went and picked them up for me, but I didn’t look in the bag all day because I wasn’t up to it. Seven o clock that (Saturday) evening, and there’s a knock at the door. It’s the pharmacist, who has driven all the way across town to drop off some extra medication that she thought she’d forgotten to give me. Turns out I didn’t need it, but it was really, really nice of her to do that on a Saturday night, when she really had to go out of her way.
Personal attitude and attention to customers make customer service exceptional, not a company size.
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Emotion influence purchase decision six times more than rational. This is why customer service is important. Many consumers will pay a higher price just to receive great customer service. To deliver it, you need to focus on various aspects of your business.
Every employee who gets in touch with your customers should understand the importance of making good impression. It does not matter if it is a frontline associate or an employee who is not supposed to contact customers, they must be friendly, polite and supportive every time they negotiate with customers.
Make sure that your employees are knowledgable and well-trained, and they support company’s values. Loyal employees have better chances to win loyal customers.
A contact point is the method a customer uses to communicate with a company. For online business the most popular points of contact are a company’s website, live chat, telephone and email.
A company’s website should be convenient for self-service. Customers should be able to easily find required products, get full product description and understand a purchase process, as well as return policy. Website usability is the most important aspect of online sales.
Phone support, live chat and email support involve communication with companies’ representatives. There are some general rules of great customer service for these contact points.
- Time of pick-up and replies. Everyone hates 5-minute wait on hold, long queues in chat and unanswered emails. It is polite to pick up the phone and chat on the third ring, and reply to emails within one day. The shorter time that takes you to reply to the customer’s email, the more pleased your customer will be. The WOW-time is five to thirty minutes.
- The right person to contact. Make sure that your customers are able to contact the right person on the first try, or at least on the second. The more times customers get transferred to another person, the more your chances are to lose them.
- Solve the issue on the first contact. Timely support allows to make more sales prevent customers from leaving.
Allow customers to leave their feedback. Listen to what they say and act accordingly. Successfully utilizing customer feedback is a must for any business looking to deliver great customer service.
The most of online shoppers prefer to contact a real person before making a purchase. Email support is too slow for this purpose, and phone calls may be inconvenient. Live chat service is the best way to communicate with customers on a website, and live chat is essential for e-Commerce.
Customers always hesitate about online purchases. “Is it the right size for me?” “Do they have it in blue?” “Can I have a discount?” “How can I return it if it does not fit?” These are only a few questions that customers have, and there are several times more. Just one unanswered question can become a reason for a customer not to buy. Unanswered questions lead to abandoned carts and lost sales.
Live chat is a must for online business. It is not a competitive advantage, but an essential part of e-Commerce websites. People do not like waiting. If they are not able to get answers to their questions immediately, they will go shopping to another website. Live chat allows to provide instant assistance. It shows customers that they are buying from real people, who care about customers’ needs and worries.
Live chat is a great opportunity for up-sell. Online assistants can offer customers better value for a little additional cost, or offer a discount for a bulk purchase. Live chat also allows to cross-sell. Customers may need accessories for their purchase, delivery service or additional insurance. Online assistants have better chances to sell extra products and services, than website information. Researchers say that customers who chat with a store representative during purchase process have 40% higher check on average.
Studies from Forrester Research show that live chat for e-Commerce can push up average order values (AOV), conversion rates and CSAT scores. It can also help reduce abandonment and encourage a transaction to take place where previously it was unlikely.
Color is the most powerful branding tool, that greatly affects website conversion. Customizable design is a must for any software, including live chat tools. In the first place it means the ability to choose color schemes, because live chat widget design should correspond to your website design. Let’s have a look at the psychology of color and its influence on online sales.
Researchers have found that there is no single best color for conversions. A principle known as “Isolation effect” states that an item that “stands out like a sore thumb” is more likely to be remembered. While a large majority of consumers prefer color patterns with similar hues, they favor palettes with a highly contrasting accent color.
Consider this example of a boost in conversions due to a change in button color:
The button change to red boosted conversion by 21 percent, but that does not mean that red holds same sort of magic power to get people to take action.
Take a closer look at the image: It’s obvious that the rest of the page is geared toward a green palette, which means a green call to action simply blends in with the surroundings. Red, meanwhile, provides a stark visual contrast (and is a complementary color to green).
Color tips that may improve your conversions.
- Women don’t like grey, orange and brown. They like blue, purple and green. In a survey on color and gender, 35% of women said blue was their favorite color, followed by purple (23%) and green (14%). 33% of women confessed that orange was their least favorite color, followed by brown (33%) and gray (17%).
- Men don’t like purple, orange and brown. Men like blue, green and black. These colors are traditionally associated with maleness.
- Use blue in order to cultivate user’s trust. Both men and women like blue, and it is one of the most used colors. The color of trust, peace, order and loyalty.
- Yellow is for warnings, but some color psychologists declare yellow to be the color of happiness. Brands use yellow to show that they are fun and friendly.
- Green is ideal for environmental and outdoor products. If the focus of your website has anything to do with nature, environment, organic, or outdoor, green should be your color of choice. Green also is a good call to action color, especially when used in combination with the “Isolation effect”.
- Orange is a fun color that can create a sense of haste or impulse. The color suggests urgency, which makes the message more noticeable and actionable. Sometimes, orange is interpreted as “cheap.”
- Black adds a sense of luxury and value. If you are selling high-value luxury consumer items on your website, black probably would be a good choice.
- Use bright primary colors for your call to action. In strict testing environments, the highest-converting colors for calls to action are bright primary and secondary colors – red, green, orange, yellow. Darker colors like black, dark gray, brown, or purple have very low conversion rates. Brighter ones have higher conversion rates.
There are no strict rules for using colors, but you may still consider them while choosing colors for your website.
Sources: http://www.entrepreneur.com/article/233843; http://www.entrepreneur.com/article/232741