Avoid the 3 Common Customer Loyalty Mistakes

Customer Loyalty Survey Mistakes

As we previously discussed in our blog post, customer-loyaltyDo You Know the Difference Between Customer Satisfaction and Customer Loyalty?, customer loyalty consists of two main factors, including: loyalty behavior and loyalty attitudes. Loyalty behavior is when customers make repeat purchases of current brands, rather than buy from competitor brands (customer retention). And, loyalty attitudes are opinions and feelings about products, services, brands, or businesses that are associated with repeat purchases.

Customer loyalty is a critical component of maintaining a successful, long-term business. Customers that are frequent users of your products or services are more likely to be repeat customers and recommend your business to others – keeping the business relationship alive and away from your competition.

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Satisfied Employees Leads to Satisfied Customers

Employee Satisfaction Produces Customer Loyalty

satisfied-customersSatisfied employees help produce satisfied customers. Satisfied employees are likely to assist customers with a more pleasant demeanor and a higher level of customer service. This creates a more satisfying customer experience, increases customer loyalty, and ultimately drives increased profitability.  Conversely, low employee satisfaction and overall low employee morale can negatively effect company operations greatly, causing dissatisfied customers and hurt profitability.

Any business, including your business, needs to focus efforts on front-line service staff – those employees that have direct, daily contact with customers. The connection between front-line employees and customers should be at the center of management attention. Managers need to take into consideration the additional factors that yield profitability at every level in the organization, including: investment in good, quality workers; technology that supports front-line employees; concrete recruiting and training practices; and compensation linked to employee performance.

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Measure Customer Satisfaction from Current and Past Customers

Measuring customer satisfaction not only from current customers, but also from past customers

customer-satisfactionAdministering customer satisfaction surveys is one of the best ways to uncover data about how customers feel about your products, services, customer service, business and marketing programs, events, and  your company’s overall ability to remain successful. Customer satisfaction surveys produce data that can help your company solve any current customer issues and help prevent potential customer problems.  Collected data can also help gauge your company’s current success with business and marketing strategies, so that you can be assured that your company is staying on target. Customer satisfaction surveys provide your business with an immense amount of valuable data.

What is the Value of Customer Retention?

Understand the value of customer retention

customer-retentionMany companies realize that customer retention is extremely important. They recognize that losing valued, loyal customers is bad for the company’s long term revenue potential and overall success. Even though this is understood on a basic level, few companies – especially those companies providing a service – seem to misunderstand what losing a single customer can mean to their business.

Example:  Sandra took her car to an auto maintenance facility for trouble with her oil gauge. Sandra knows very little about cars, so she decided it would be wise to have her car towed to the closest auto maintenance facility to be serviced. The mechanic on duty treated Sandra with absolute condescension.  He acted as if Sandra should know much more about cars and how to check her own oil. Upon completion of service, the mechanic charged Sandra for 2 hours of service even though Sandra had only waited an hour for her oil to be checked and changed.  It was obviously a bad experience for Sandra, and she had no intention of returning to that auto maintenance facility for future services, nor would she recommend their services to friends and family.

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Customer Satisfaction Surveys – Advantages and Disadvantages

Take customer satisfaction into consideration when developing strategic business decisions. 

customer-satisfactionThe most efficient way to measure customer satisfaction is to develop customer satisfaction surveys with the help of a good survey software solution. An advanced survey software solution can manage multi-mode survey research methods – produce the same survey in different formats; including online surveys, mobile surveys,  paper surveys, and more – depending on the best method to reach your target customer base. Customer satisfaction surveys are designed to give you anonymous and unambiguous insight into your customers’ thoughts and perceptions pertaining to your products, services, programs, and your organization as a whole. They can also provide valuable information leading to what needs to be changed in order to retain lasting customer relationships.

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The Key to Effectively Market to Customers is to Know Customers

Use online customer surveys to gather information to create effective marketing plans

customer-service-customer-surveyThe key to effectively marketing to customers is to know your customers. Your customers are your target audience and knowing your target audience inside and out gives you insight into their needs and wants. If you know what they need and want, you can develop marketing strategies that clearly communicate your important marketing messages. It seems like pretty simple, basic stuss, right? But the hard part is figuring out exactly what your customers want and expect from your products and services. How do you gather that information? Continue reading

Blog Series: 10 Issues to Consider when Designing Online Surveys, Issue #6

10 Issues to Consider when Designing Online Surveys, Issue #6

We are into week two in the Snap Survey Software blog series concerning the 10 issues that can occur in online survey design. We move on to issue #6.

Issue #6: Information accuracy 

As mentioned previously, some survey questions yield more accurate results than others. information accuracySurvey respondents can easily and accurately answer straightforward demographic questions about their gender and age, however, when it comes to attitudes and opinions on a particular subject, some respondents may not have a clear answer.

Attitudes and opinion questions should be phrased in a way that best represents how survey respondents think and speak about a particular subject. In some cases, certain online survey questions need to be skipped when they do not apply to the respondents’ experiences or they are irrelevant to the respondent. Continue reading

Is Customer Service a Significant Success Strategy for Business?

As National Customer Service Week comes to a close, we leave you with this question to ponder: Is customer service the most significant success strategy for business?

Is the face of customer service changing to become a defining business strategy for success? customer-serviceMany can argue this case. But what is true is that technology has changed all aspects of business, especially in the ways in which we communicate. Research has shown that social media has elevated customer service from a supporting role to a key business driver. More specifically, it is the growing consumer use of social media that has elevated customer service to such prominence in the business model. Continue reading

Do You Really Know What Your Customers See?

What do your customers see and experience?

As we continue to recognize National Customer Service Week, we invite you to view an interesting blog post by Sam Fiorella, Chief Strategist at Sensei Marketing. Do you know what your customer doesn’t see? Sam gives us an interesting customer perspective – what they really see and experience.

Your customer does not see how unrealistic their demands are. They see how you respond.

Your customer does not see your profit and loss statement, nor do they care. They see their shrinking wallet and what you plan on doing to help them with that.

Customer-Experience-SurveysYour customer does not see the price of a product. They see the value it gives them.

Your customer does not see the volumes of transactional and demographic data you’re collecting. They see that you’ve offered a product that you’re overstocked on rather than a product they need.

Your customer does not see the 754 unread emails in your inbox. They see your attempt to reach out and just say “hello”. Continue reading

How Are You Celebrating National Customer Service Week?

National Customer Service Week, October 1 – 5, 2012

The first week of October marks National Customer Service Week. National Customer Service Week was established by the International Customer Service Association (ICSA) in 1984 and proclaimed a national event by the U.S. Congress in 1992.

A business built on customer service understands and anticipates the customer’s needs. It designs goods and services to meet those needs and builds products that perform to customer expectations.” – George H. Bush

customer-serviceNational Customer Service Week is a time for everyone to increase awareness of the importance of treating your customers well in order to maintain business relationships and increase business interactions. It is also a way to recognize the people who work in customer service to let them know their efforts are valuable and well respected.

Recently, we ran a free webinar titled, How Customer Experience Can Drive Your Organization. On this week of recognition, we invite you watch this fantastic free webinar. Continue reading