How To Build Customer Loyalty Through Good Customer Service [VIDEO]
Outstanding customer service is absolutely imperative for business success in today’s highly competitive business climate. If you don’t put your customer above everything else, you stand to lose them and this could be detrimental to your business. However, if you provide your customers with the best service you possibly can, you will build customer loyalty and they won’t have any reason to look to one of your competitors.
Why is customer loyalty so important?
- Customer Acquisition is Far More Costly than Customer Retention.
“It costs 5 times as much to attract a new customer than it does to keep an existing one” (Invespcro). Therefore, it’s in your best interests to keep them happy and win their loyalty.
- Word of Mouth
The power of word of mouth cannot be underestimated. Loyal customers will talk about how impressed they are with your service to the people around them. Prospects trust the word of people they know far more than reviews written by strangers, therefore leading to more customers at no cost.
- The Probability of Selling to a New Customer is Lower than that of Selling to an Existing Customer
“The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5-20%” (Invespcro). Therefore, customer loyalty can improve your bottom line because existing customers are more likely to buy from you again and again.
How can you build customer loyalty through good customer service?
Click play on the video below or keep reading!
1. Be Transparent
Being open and honest is a key way to build customer loyalty. According to a survey by Label Insight, up to 94 percent of consumers surveyed indicated that they were more likely to be loyal to a brand that offers transparency, while 73 percent said they were willing to pay more for a product that offers complete transparency.
To become more transparent as a business, share your history, goals and values, be open about your pricing, ask for your customer’s opinions and listen to and implement them where you can.
2. Do What You Say You Will Do
There is nothing that will break your customer’s trust and ruin your own credibility quicker than not delivering on the promises you make. However, if you do what you say you will do, it can be a really effective way to build customer loyalty. It’s small actions like this that go a long way with your customers. So, if you make a promise, make sure you deliver on that promise.
3. Under Promise & Over Deliver
Leading on from the previous point, it’s important not to promise something you may not be able to deliver. However, under promising and over delivering on that promise is a great way of wowing your customers with outstanding service and winning their loyalty. For example, say you will deliver a piece of work on a Thursday but actually deliver it a day early. By doing this, they’ll be pleasantly surprised and it’ll cement their trust in you.
Communication is vital in our personal lives and our business lives. Without communication, relationships cannot be formed or sustained. In business, you can never communicate with your customers too much when you’re completing work for them. Ensure that you keep them updated as to the status of the job, when they should expect it to be completed and any changes to the schedule. Going back to our 2nd point- if you can’t fulfill a promise you previously made, tell your customer as soon as possible. Customers know that mistakes happen and if they know about a delay in the progress of their work, they can deal with it. However, leaving them in the dark, wondering why they haven’t heard from you can be extremely damaging to your reputation and relationship with your customer.
5. Use The Right Language
The final way to build customer loyalty through good customer service is to use the right language. Using positive language with your customer as opposed to negative language, whilst subtle, can make a huge difference to their experience.
Here are a few examples:
Say “How can I help you today?” as opposed to “What’s the problem today?”
– Mentioning a ‘problem’ implies that there is a problem.
Say “It’s a good question, let me find out for you” instead of “I don’t know the answer to that.”
– This shows you’re willing to go out of your way to answer your customer’s question.
Say “I’ll do my best to resolve this as soon as possible” as opposed to “I’ll try and fix this as soon as possible.”
– The term ‘I’ll try’ implies that you may not be successful and the word ‘fix’ implies there is something that needs fixing.
You may think that the differences between the above comparisons are minimal and you’re right, they are. However, subtle changes in your language can make a huge psychological difference to how your customer feels and responds to you.
The way in which you handle complaints and problems will be a huge factor in determining the kind of relationship you build with your customers. Handling them in the right way and offering your customer a solution will help you to build customer loyalty.
So, there’s our tips to help you build customer loyalty through good customer service. Customer service is vital in achieving business success so take these tips on board and always put your customers first.