Saturday, June 22, 2013

Is Customer Satisfaction Enough for Your Small Business???

I was recently working on a presentation about customer service and while doing my normal research  I found some very interesting information. Probably the most profound statistic I found was about customer satisfaction:

"86% of customers who go with a competitor express total satisfaction with the previous company"

This got me thinking. If great customer service is what we are always talking about in small business,  yet 86% of our customers are willing to try someone else, is customer satisfaction what we are really looking for?

Lets take a look at really good companies such as Southwest Airlines, Amazon.com, Nordstrom, Zappos and even Starbucks. Do they have satisfied customers?  Yes, but their customers are not only satisfied, they are "Devoted Customers".  The customers only shop at their stores unless they really can not get what they want, another business is always a second choice.  They are also the "Brand Advocates", who talk up your brand to other people.  These are the customers you want.

In my research I also discovered 44% of customers state their buying experience as Bland, Boring and Impersonal.  And we wonder why 86% will try someone else.

These are 8 steps you need to take to get these "Devoted Customers"!!

1) Create Excitement! Not only about your products but your brand, your people, etc.

2) Listen to your customers! Really be sure you are giving your customers exactly what they want and asking them for their input. Make them feel part of the "Team"

3) WOW them! You have to WOW people so when a customer shops at your business, they go "WOW, that was an awesome experience!"  How many times have you been WOW'd by a business??  I know it is rare for me to be WOW'd by a business, but when I am, I am committed to them.

4) Go Beyond Expectations! Many businesses talk about their great customers service, but the ones that really stand out are the ones that deliver to their customers much more than they ever expected.  Give the customers something they did not expect.

5) Build Relationships! Customers really like doing business with friends, or people they like.  You and your employees need to get to know your customers.  Know your customers by name, know where they work, their families, and make note of when something exciting happens. This isn't just about sending a birthday card, it is about telling customers you heard their child just made the honor roll, or just came in first place, or they just got a promotion, etc.

6) Make sure every experience a customer has is positive! Don't every let  a customer have a negative experience about your company.  This applies not only when they are buying, but also your accounting department, your website, your marketing and even your delivery person.  Make sure every touch point is a positive one.

7) Reward Your Best Customers! Don't you just hate it when you see a great special being offered to new customers for the company you have been loyal to for years.  Nothing wrong with giving enticements to new customers for signing up, but don't forget about the loyal customers who help you get where you are at. Award them from time to time something special and unexpected, these gifts will pay you back in more loyal customers.

8) Hire, Train and Keep Motivated Employees! A book I read many years ago was 'The Customer Comes Second."  This is a great book about in order to treat customers right, you have to have a good motivated staff who wants to provide and knows the importance of providing great service.  To accomplish this you should setup systems that allow customers to easily comment about employees, and then have reward systems in place for great service.

As a small business owner, or new entrepreneur, you have a big advantage over larger competitors.  You can really get to know your customers, you are a member of the community, you can really listen to your customers and thus respond quicker to what they want.  Be sure you use this to your advantage as a small business owner.

In the next post I will discuss the importance of really understanding your customers.  Stay tuned!

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