10 fundamentals for creating customer confidence and driving loyalty.
In this world of ubiquitous and constantly evolving information, I believe that having a roadmap or a set of business fundamentals is essential—a document that is agreed upon, shared and lived by whenever policy or procedure changes arise, or when making decisions to support your brand on a daily basis.
During the last Execs In The Know—Customer Response Summit, Shep Hyken, one of my favorite authorities on customer service, gave a keynote address that summarized the roadmap to creating customer service loyalty for your brand. The roadmap was built based on insights from the Execs In The Know and COPC Inc. “Customer Experience Benchmark Series” findings.
In a question that was first included last year, corporations were asked, “Aside from resolving the issue, what factor do you feel most drives customer service satisfaction for consumers?” There was a surge in the number of respondents who pegged “Ease and Convenience” as the top driver of Csat (aside from issue resolution), now edging out “Knowledgeable Advisors.” This represents a year-over-year increase of more than 75%, with all gains coming at the expense of “Knowledgeable Advisors” (-38%). (See the chart Below.)
Customer satisfaction with the ultimate goal of loyalty, however, will never be built on one attribute. An emphasis needs to be placed on the journey a customer experiences with a brand and the many touchpoints. At each touchpoint, companies must strive to build cornerstones of service.
For those of you who don’t know recognize Shep’s name, I encourage you to get to know him. Shep Hyken, CSP, CPAE, is the Chief Amazement Officer of Shepard Presentations. As a professional speaker and author, Shep works with companies and individuals who want to build loyal relationships with their customers and employees. Shep authors the Customer Service Blog ( www.CustomerServiceBlog.com ) where you will find over 400 articles that pertain to the concepts and strategies discussed in this article, and other concepts related to customer service and loyalty.
10 Keys to Driving Loyalty
The following 10 fundamentals from Shep are key to creating customer confidence and driving loyalty.
1. Create an Easy Experience.
Customers want an easy, frictionless experience. No problems and no hassle. It’s a good idea to journey-map your customer experience, so that you are aware of any major touchpoints and possible friction points. Quick note for when things don’t go the way they should: A Moment of Misery™ (complaint) is an opportunity to prove the customer made the right decision to do business with you. When there is a problem, this five-step process helps in many situations: (1) Acknowledge the problem; (2) Apologize; (3) Discuss the resolution or fix it on the spot; (4) The right attitude counts; and (5) Act with urgency. Handling a problem the right way can build confidence to a higher level than if the problem hadn’t happened at all.
2. Knowledgeable People.
Customers will ask us questions and we must know the answers—or know where to go, or who to go to—to find the answers. Our customers ask us questions because they have confidence in us and we don’t want to let them down. Some companies have used knowledge as a competitive differentiator, as knowledge creates confidence. When customers gain that confidence, they buy more, buy more frequently and ideally become loyal customers.
3. Deliver a Friendly Experience.
People want to be treated like people, not as an account or a number. Build a relationship with a little rapport. This isn’t about having a long conversation—a quick comment might be what you need to help “break the ice.”
4. Speed.
We must value our customers’ time: on hold, field service, speed of delivery, time spent in lines, etc. Years ago, two to four weeks for delivery was acceptable. Today, it’s two to four hours. Amazon is a leader in speedy delivery and in some markets even has one-hour delivery as an option. How fast do you respond to customers’ questions or complaints? Facts from Eptica: For email, the average response time was 7 hours and 51 minutes! For Facebook, the average response time was one day, 3 hours and 7 minutes! For Twitter, the average response time was one day, 7 hours and 12 minutes! Do any of these response times seem reasonable? (Rhetorical question, but I don’t think so!)
5. Consistency.
Human beings have always craved consistency from one another and this does not change in the business to customer relationship. When inconsistency is removed, trust begins to form and puts us on the path to customer loyalty. Focus on building consistency in every aspect of your service experience.
6. Personalization.
The customer wants a customized or personalized experience. Data is key. You must be able to collect it, analyze it and utilize it effectively. The goal is to create the personal touch or engagement at a higher level.
7. Data Analytics.
Data gives us incredible information. We know what customers want, when they want it and buy it, what time of day, what the temperature is outside and more. Using this data to create a better experience is powerful.
8. Self-Service.
Customers are asking for self-service solutions, especially millennials. Phone is still the most popular method of communication, but the concept of self-service is catching on. The key is to train the customers to use this solution. Examples: In its most simplistic form, you can have FAQs on your website. How-to videos are powerful, either on the website or on YouTube. A forum for crowdsourcing customer service is also popular.
9. Social Customer Service/Care.
Customers are now social. They have a way to voice their opinions, both good and bad. In 2012, 69% of companies were on the social media bandwagon. In 2016, that grew to 83%. (I worry about the 17%.) Don’t just react to comments, both negative and positive. Proactively engage the customer community by pushing value-added content. CS has become a spectator sport, thanks to social media. Customers amplify their experiences to the world. Jay Baer says, “Negative reviews aren’t the problem. Ignoring them is.” Don’t ignore negative reviews—respond to them.
10. Focus On Your Employees.
The employee wants to be appreciated. This is an ongoing trend, more so with the millennial generation growing in the workforce.
- Herb Kelleher of Southwest Airlines knew this. Treat employees right and they treat the passengers right. The happy passengers will fly again, and that makes stakeholders happy.
- Look what REI did on Black Friday—closed their doors and encouraged employees to enjoy time outside with their friends and families. By disrupting the status quo, and living their values, they gave employees something to be proud of.
- Practice the Employee Golden Rule: Treat employees the way you want your customers treated—if not even better.
BONUS: The “Lazy” Economy is coming. Set it and forget it. Predictive consumption (Dollar Shave Club and A/C filters) and just-in time refills (Amazon’s Dash Button on steroids) are enhancing the customer experience.
Is a Satisfied Customer a Loyal Customer?
The roadmap is essentially about creating confidence, which can potentially lead to loyalty. Strive to create Moments of Magic® with your customers, or in other words, be above average all of the time. Customers like (and want) a consistent and predictable experience. They want, as the old saying goes, “…To do business with people we know, like and trust.” The trust part of the sentence is the most important. We must earn the customer’s trust, and in turn, hopefully drive customer loyalty.
As for the term “satisfied customer,” satisfactory is a rating. Loyalty is an emotion that ties the customer to the company. The goal is to be better than OK, better than average and better than just satisfactory. The best (amazing) companies are really just a little better than average. However, they are consistently better than average. That’s what makes the difference; the consistency. Customers can predict their experience. The company is always better than average. That’s what makes the company amazing.