In a fiercely competitive business environment, clients are often fickle. Marketing studies show that the percentage of customers who have a high level of satisfaction with companies and are likely to remain loyal to them is around 40%, at best. Customers with lower levels of satisfaction usually aren't repeat buyers and are more likely to switch to your competition.
It's crucial then that you take steps to improve customer satisfaction and give your clients a reason to stay with you. After all, the cost of acquiring new customers is significantly higher than developing new business with existing clients. It makes good business sense that you get to know your customers and better satisfy their needs.
Naturally, customer service excellence starts at the frontline. So how do you know if your sales staff are handling customer service poorly?
Here are some examples:
- Your callers are frequently put on hold and return calls are often delayed.
- Your sales staff aren't taking the initiative to resolve problems and you have no policy to resolve complaints.
- You are defending poor sales policies.
- Your sales records are poorly managed.
Customer satisfaction musts
- Train your customer service people and audit what they do.
- Ask your customers what they think of your products. Find out what they like about your products and what changes they would like to see.
- Don't limit yourself to conventional means such as customer surveys; be sure you're using simple alternatives such as personal contact. People want a personal reason to be your client.
- Respond to complaints promptly; develop a good policy to process complaints and resolve problems. Consider strategies such as discounts, free services or other perks to win back your customer's confidence.
- Offer a product-return service that is simple and effective. Include comprehensive and useful information about how to use your products, in this way, you'll have fewer returns.
- Think of yourself as more of a counsellor than a salesperson; your role is to make your customers feel that you can help them solve their problems.
- Make it easier for your clients to buy, get delivery of, and pay for your products. Even if you have high-quality products, you will lose customers if they have to go through a complex process to get them. Simplicity is vital.
- Pay particular attention to your most loyal customers, especially local clients. Give your customers an incentive to stay around. Use creative ways to show your customers that you care with attractive leave-behinds. Make sure that the gesture reflects your business and avoid giving people low-quality gifts that break easily.
- Focus on more follow-up with clients and educating them about your products or services.
Put Customer Relationship Management on your side
Customer expectations are higher today, and the statistics tell the story. Studies confirm that 85% of Canadian consumers expect to have access to a service responding to complaints and questions (88% would like to have this on the Internet), and 65% would consider switching suppliers to get this access.
So how do you meet tougher customer service demands? An increasingly popular means is what is known as Customer Service Relationship or CRM. Basically, it's determining who your best customers are, keeping their trust and loyalty and ultimately maximizing your profits. CRM embraces the idea that every customer contact should be handled with personable, efficient and knowledgeable service and expertise. A BDC consultant can help you determine the feasibility of such an initiative.
At the base CRM uses technology to manage relationships. For example, some companies use it to create personalized call centres where technology recognizes in-coming phone numbers and automatically calls up customer information for the representative taking the call. A CRM system could also allow travelling sales and repair personnel to use mobile wireless transfers to punch up information about a customer being visited.
Put the principles into practice
If CRM technology is not within your budget, then you can at least apply the basic practices. For example, in most businesses, entrepreneurs contact and deal with customers through a variety of different means including e-mail, faxes, phone calls and letters.
- Keep track of how you're dealing with your customers (who said what to whom and when) with a simple spreadsheet.
- Monitor how you prospect customers and generate reports.
- Keep an eye on their credit worthiness and generate reports.
- Coordinate your customer contact efforts through a single person.
