With mounting competition in today’s markets, I noticed that every small business owner is focused on offering great customer service. This is something in common to all the small business owners that I am friends with and connect regularly with.
Making customers happy is a sure fire way to keep a business up and running successfully.
Smart business owners know that nurturing and caring for customers can significantly increase resell, cross-sell, and up-sell opportunities.
It also helps turn buyers into repeat customers who will bring their family and friends. This way, businesses can achieve their customer volume, marketing, and revenue goals.
There are 7 small business secrets that I uncovered by speaking to 6 business owners in my family as well as business owners who are my close friends and people who I have worked with in the past and its all about how your customers feel.
But designing a strategy to make customers fall in love with your brand can be challenging. It doesn’t rely on offering quality products or simply closing a sale.
I received some valuable insights from my interactions that I believe will be useful for all small business owners.
Create a Friendly Customer Service process
Providing top-notch customer service is crucial for the long-term success of the business. Making customers feel relaxed, secure, and fairly treated will enhance their buying experience.
Accessibility, politeness, sincerity, and lack of condescension are the most important qualities that customers look for in a brand.
When questioned about their strategy for encouraging repeat purchases, all business owners I spoke to unanimously agreed that friendly service is the cornerstone of their competitive advantage.
Here are some staggering statistics that underscore why all business owners prioritize the quality of customer service:
In a survey conducted by Salesforce, a whopping 94% of customers say that a good customer service experience encourages them to buy again from the same brand.
While baseball abides by the ‘three strikes and you’re out’ mantra, customer service is a little less forgiving. As per Zendesk’s CX Trends 2022 report, about 61% of customers would switch to a competitor after just one bad customer service experience.
And I wonder what is the best way to ensure this does not happen?
Well, my own experience and experience from other small business owners has taught me that cultivating a good, caring and nurturing workplace culture can go a long way in creating friendly customer service. Here’s a brilliant formula I abide by:
Happy Agents = Happy Customers.
Your small business has to be Customer-Centric
Most business owners I spoke to have shifted from a product-centric business to a customer-centric business. They mainly focus on two things:
- Why customers might need their product or service?
- This is where the key customer pain-point you are solving for becomes critical in your business success
- How can they make their customer’s life more convenient?
- This is how you are making you your customer’s life easy by removing a source of frustration or something that is unpleasant for the customer.
Below are some customer-centric strategies adopted by one of the business owners to reduce customer churn rate:
- Removing unnecessary friction in customer interactions with their business.
- Building a strong customer-centric culture by rewarding employees for meeting customer needs.
By focusing on customers’ specific needs, businesses can better serve and retain customers. This leads to better customer relationships, driving repeat purchases and increasing profits.
There is a related article here on how many small business owners are improving their customer retention by adopting various strategies.
Listen and act on your customer’s feedback
Many negative customer experiences can be traced back to unfulfilled customer expectations.
The customer expected something, but we failed to deliver. It’s possible that we didn’t even anticipate those expectations. This is a common occurrence for all small business owners.
The good news is that businesses can easily solve this issue by asking for customer input and capturing feedback. Here’s what a friend did with her small business to manage customer expectations.
Whenever her business had events, updates, or news, she would actively seek out her existing and potential customers and learn their opinions and thoughts about her company, the event or anything related. She gathers customer feedback by asking open-ended questions such as:
- How does our product/service align with your goals?
- What specific outcomes are you anticipating?
- What’s your preferred timeline for achieving these goals?
She then understood the voice of her core customers, which enabled her better design her offerings. She was able to improve customer life and increase retention rates and she manages to grow her business well over 25% in quarterly revenues.
Personalize your offering, communication and your brand
I believe that one of the best ways for a business owner to establish and build a connect with customers is by being personal with them. This is one of the main reasons why my uncle uses customer names directly in emails and engages with them through social media.
If the question, “Why is personalization important ?” has ever crossed your mind, here’s an important statistic you should pay attention to.
Need more convincing? Here’s another report by Mckinsey & Company:
These statistics unmistakably highlight that brands neglecting personalized experiences are at risk of losing both revenue and customers.
Customers are not a stat or a number but people with unique personalities and desires. I feel that we, as small business owners, need to anticipate small business customers’ wishes and understand them on a deeper level.
This can make all the difference when it comes to building a full-blown relationship with customers.
Be transparent in customer dealings
One of my mantras for my small business is that in customer care, just like in love, honesty is the key.
I believe that a brand that is forthcoming about the less presentable aspects of its services always wins customers’ trust.
Most business owners I spoke to firmly believe that customers appreciate transparency and honesty. They always keep customers informed about the positives as well as the negatives of the products and services they offer. According to them, customers get excited when good things occur and are understanding when things go downhill.
Here’s what Stackla’s 2021 report on Shifts in Consumer Habits says:
Honesty and authenticity are eternal drivers of trust, and small businesses have to get real to establish a meaningful connection with their customers.
From data retention policies and customer wait times to order fulfilment, it’s essential to be honest about everything happening within the business.
Celebrate Your Customers and Show Gratitude
I believe that the most successful businesses are the ones that express gratitude towards customers. When customers feel valued and appreciated, they’re more likely to come back. In one of my earlier articles, I had described how a friend who runs a boutique business randomly thanks her customers.
While researching the ideal small business customers, I stumbled upon a useful article that further emphasised this.
According to Forrester’s US 2022 CX Index, over 54% of customers who experience positive emotions such as happiness and a sense of appreciation are more willing to forgive brands for their mistakes.
This information demonstrates that appreciating customers is a worthwhile investment that leads to their long-term loyalty. Most business owners go the extra mile to recognize, honor, and celebrate their customers.
- I’ve seen other small businesses send handwritten notes to thank customers.
- Some leave thankful voicemails to let customers know they care.
This is the perfect way to show gratitude to customers and make the brand stand out.
When it comes to customer service, this popular quote from the world-renowned author, poet, and activist Dr. Maya Angelou is so fitting to me.
Create a meaningful customer Loyalty Program
I’ve seen many businesses offer discounts or free items to attract new customers, but very few incentivize old ones. This stands out as an omission frequently committed by businesses.
What makes me say so?
Before I get to that, let’s take a look at some infomation first.
According to a Merkle Report, 79% of customers are more likely to make a repeat purchase due to a reward or loyalty program.
Another survey by Yotpo revealed similar results.
What do you infer from these numbers?
Adding a loyalty program to a business helps in customer retention. It gives customers an incentive to keep coming back to the business.
Satisfy your customers’ desires. Provide what they crave!
When customers earn incentives, they feel good. It’s the easiest way to make existing customers feel cared for.
The question here is what is the best loyalty program that can be created? In short it must answer the following questions.
- What is the value the customer gets from this?
- Does this value far exceed the cost of suffering the customer has today?
The above tips unveil the hidden formula that successful small business owners use to captivate customers and foster long-term relationships.
From my own research and experience of working with many small business owners, I can say that only customer love and delight can give you a competitive edge in today’s economic climate.
The bottom line is customers are kings and queens in the world of small business. We must treat them accordingly to thrive and win market share