Finding viable clients is one of the most important issues of a new company. But in the pursuit of building a customer base, we shouldn’t forget the importance of customer satisfaction. Getting people to buy is critical. But getting people to buy, and then buy again, and to encourage friends to buy is fundamental to long-term success.
As your company grows, it is important to measure customer satisfaction and recognize how high customer satisfaction which results in customer retention puts you on the path towards profitability. Customer satisfaction through customer service is not a vague or abstract concept—it is tangible and measurable. When products are recommended by friends or family, people are 4 times more likely to buy it. Customer satisfaction is essential for referrals so in order to ensure a high-level of customer service in your organization, make it an integral part of your company culture.
The cost of acquiring a new customer vs. retaining a customer varies between 4 to 10 times. However you’d like to look at it, it always costs more to get a new customer than to keep one. The right balance needs to be struck between the two and it is worth looking into what works for your company. Measuring and allocating the appropriate resources and implementing customer satisfaction strategies will save you money in the long-term by increasing customer loyalty while decreasing customer turnover.
6 customer service essentials
It starts with your company culture. If you don’t make top-quality customer service a part of your culture, you won’t get the customer satisfaction you’re looking for. It’s as simple as that. If you’re looking to improve your customer service, it’s important to do the following 6 things.
- Ensure that you’re clearly conveying the value you provide customers. Make sure that your employees understand and can accurately describe the benefits your company offers to current and future customers.
- Talk to your customers after the sale. Check in with one of the most important parts of your business and create a feedback loop. Get on the phone and ask them about their customer service experience and whether they are satisfied. Did you meet or exceed expectations? Use what you learn to optimize the relationship.
- Take your customer relationship to the next level. Be the solution to not just one of your customer’s problems, but all of them. Work with them to understand their goals and try to align your products accordingly. If you can become integral to their business strategy, they will be a lifetime customer and they will open new opportunities through referrals and organic promotion. Their success will be your success.
- Invest in your employees. It’s not just about the customers. This Harvard Business Review study said it best: “Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, and productive employees.”
- Go beyond culture and make it a key performance indicator. Evaluate customer satisfaction at least once per quarter. Get feedback through surveys and interviews instead of just reacting to problems. Be proactive instead of reactive. Set clear goals on how to consistently improve customer satisfaction and make it part of your growth strategy.
- Conduct an exit interview. Not every customer stays onboard. They leave for all kinds of reasons but it is important that you understand why. Can you identify any trends from leaving customers? Is it a cost issue or something you overlooked? This may be the best time to get critical and honest feedback. It may be difficult, but don’t miss this opportunity to improve your business.
It’s never too early or too late measure and improve customer service and customer satisfaction. Following these steps will allow you to reap the rewards of high customer satisfaction. It is essential to the long-term viability and success of your company. Remember, acquiring new customers is a skill. Retaining them is an art.