customer service

Here is Why Customer Service is so Important (and how to do it well)

Reading Time: approx. 3:30 minutes

We all know “The customer is King” (or Queen). While they are not always right in their opinions and demands, they should nevertheless receive a white-glove level of service. So, what is one to do to ensure your customers want to keep coming back?

At a workshop by business coach Jayne Huhtanen, of FocalPoint Coaching Toronto, I picked up a few tips on how to propel your customer service to a whole new level. But first, why is customer service so important?

An unhappy customer is a company's worst enemy! While we can and should learn from critical customer feedback and complaints, if they are very vocal and unrestrained on social media they can undermine and damage our reputation, whether it is a justified complaint or not. It doesn't take much for them to dish the dirt via Facebook, Twitter or a Google rating. We know we can't please everybody all the time, though we surely want to.  

According to Jayne, customer service can be broken down into four areas: Service, Satisfaction, Staying, and Success.  Firstly, you want to provide not just a ‘good’ service, you want to exceed customer satisfaction, which is more likely for them to stay with your product or service. For most businesses, the 80/20 rule holds true, i.e. the top 20% of your clients generate 80% of your sales. This makes repeat customers essential for long-term success.

Know your Customer

To provide excellent customer satisfaction you need to know their wants and needs, their why, and what their expectations are in terms of your product or service. One way to find out is by asking directly, requesting feedback or conducting customer satisfaction surveys.

You could apply the Net Promoter Score (NPS) method, which asks just one question: How likely are you [the customer] to recommend this company to a friend or colleague?  The resulting scores fall into one of three categories:

  1. Promoters: Rate you 9-10 in customer service. They are loyal enthusiasts, who will keep buying and referring others.

  2. Passives: Rate you 7-8. They are satisfied enough customers but unenthusiastic, and vulnerable to competitors and better deals.

  3. Detractors: Rate you 0-6. These are unhappy customers, who can damage your brand and hinder growth.

Turn your Customers into Promoters

The best promotion of your business or product comes from existing clients or customers. To turn more of them into promoters (aka your unofficial sales team), ensure you meet one or all three of these extras for amazing customer service:

  1. Exceed expectations: It builds customer loyalty, helps lead to increased profitability, customers are more likely to pay more for this better service, and helps avoid customers going elsewhere for a similar product or service.

  2. Delight customers: Do your best to touch customers on an emotional or personal level; this shows them you truly care, increases client retention and makes it harder for competitors to pull them away.

  3. Amaze customers: Finding that sweet spot can propel your business to a whole new level! Treat your customers like gold, and your amazed customers will be keen to refer you actively.

Additionally, you can make your business stand out from the crowd when you always follow-up with your clients, offer solutions immediately, provide incentives, have personal interactions (by telephone or in person), be accountable, send thank you cards or small appreciation gifts, and maybe offer a finder’s fee or other incentive for direct referrals.

If you are always sincere in your client interactions and over-deliver on their expectations and experiences, your customer service is sure to excel and get noticed.

Sources:

Additional reading: