The way we think customers want to be treated affects how we do business, but sometimes, our assumptions are a little off. Here are 5 myths about customer service–and why they’re busted–that can help reveal the best customer experience possible.

 

  1. A satisfied customer is a loyal customer.

Studies show that if customers are “satisfied” with a product or service, they are still likely to leave for a better price from a similar business. If you want customers to stake their reputations on referring your business and stick with you through pricing changes, you’ll have to far exceed their expectations.

  1. The fewer the complaints, the better.

Anywhere from 70-90% of dissatisfied customers don’t voice complaints before leaving a business. If you aren’t actively monitoring how customers are feeling, you may just be turning a blind eye. Complaints can reveal behavioral problems that would otherwise go unnoticed at the front line. Recognizing and changing specific habits can help retain current customers and create more loyal ones in the future.

  1. A company’s commitment to service will get the attention of customers.

Actually, there’s a huge gap here. While 80% of business leaders say they’re providing superior customer service, only 8% of their customers agree. It’s crucial to monitor customer feedback to see how customers really feel about your efforts.

  1. New sales are more important than customer service.

This is where we get into the idea of “good profits” vs. “bad profits.” A dollar from an angry customer is just as green as a dollar from a happy customer, but that first dollar represents poor reviews and a bad reputation. Studies show that a customer who had a poor experience will tell 17 people about it while a customer who had a good experience only tells 11. Profits from unhappy customers may look good in the short term, but eventually, that negativity will poison growth and overtake positive reviews and referrals.

  1. Invest more in marketing and advertising than in training or customer service.

According to various studies, it can cost anywhere from 5 to 25 times more to win a new customer from ads and marketing efforts than it does to retain an existing one. Customer retention is vital to growth, and the proper training and customer service measures will go a long way. Tracking those efforts and their effects on your business is the best way to move forward.

 

 

In a blacksmith’s home, there are only wooden spoons.

The plumber’s house always has a dripping tap.

Proverbs such as these are scattered throughout cultures around the globe. The phenomenon is quite universal: sometimes we become so consumed by our profession, so preoccupied with projecting our talents outward, that we forget to look inward long enough to provide for our own families.

Rapidly growing businesses often have impressive and proven strategies for customer acquisition. An influx of new customers is an exciting statistic glimmering with the promise of revenue and growth. It is so exciting that it can dominate all of our efforts and resources. But what about the customers we already have?

When customers choose to buy your product or service, they become part of your brand family. Whether it is reluctantly or enthusiastically, they take up your banner in some fashion. Nurture and respect a cohesive family unit, and it can bolster the brand’s image, value, and future prospects. Consumers see a proud and happy brand family and jump at the chance to join. Neglect or mistreat that family, however, and you may quickly find frustration and disillusionment that could lead to an exodus.

Retention is an integral aspect of growth. It is exhilarating to look outward towards prospects with an appetite to conquer new territory. Fail to take care of the folks at home, though, and you might have a revolt on your hands. Slowing down to make sure customers have proper care and attention will greatly improve a business’ odds of survival. A high retention rate ultimately drives profitability and increases the value of a customer lifetime.

Just like customer acquisition, customer retention needs carefully planned programs. For some insight, take a look at this webinar with John Schroeder of Nova Foresight and Angela Bossie of Listen360. Tune in to follow along as these two experts map out the path to higher retention rates with 3 essential strategies.


Watch the recording here.