The Customer Care Rule

Rule #1
If we don’t take care of the customer, Somebody else will!

I saw this on a poster years ago. I love it! And it really is “rule 1”. Customers are loyal to good serve, but very swift to move on to your competition if they feel they are not valued. I saw a similar sign on the inside of the deli door at the New Frontiers Natural Marketplace in Flagstaff, AZ. It said:

“When you see, hear or meet a customer, all other duties are put on hold. First and Foremost, serve the Customer! “ (Their bold ï )

I like to say that if all businesses ran this way, I’d be out of a job. Unfortunately for us as consumers, many businesses (or the people that work in them) just don’t get it. When you make the customer the most important part of your day, you are not only facilitating a sale “today”, but are ensuring that that person will come back – and tell their friends.

A study done by American Express Global Customer Service Barometer in August 2010 showed that a majority (61%) of Americans report that quality customer service is more important to them in today's economic environment and will spend an average of 9% more when they believe a company provides excellent service. How much would 9% more on each purchase add to your bottom line?

Here is another statistic that I love, from the White House Office of Consumer Affairs: It costs about five times as much to attract a new customer as it costs to keep an old one. All that money spent attracting new customers and clients…spend half of it on employee training and motivation and see what the returns are.

Another fact to keep in mind is that happy customers tell their friends. There is no cost to referrals, but the return is tremendous. However, don’t lose sight of the flip side of this equation. Each of your clients has a sphere of influence of 250 people (also from the White House Office of Consumer Affairs). So if they are unhappy with you – that can be devastating to your bottom line. And it seems to be an aspect of human nature – we like to complain. Consequently we tell many more people about a ‘bad’ experience than we do a good one. I’m sure you’ve seen the statistic that happy clients tell 3 to 5 people and unhappy ones tell 10 to 15. And as I like to add – those statistics are pre social media. One negative comment on Facebook, Twitter or YouTube can go viral and reach literally millions of consumers. See United Breaks Guitars by musicia
Dave Carroll if you don’t believe me: http://www.youtube.com/watch?v=5YGc4zOqozo (Over 10 million views as of this writing….)

So, the goal is maximize positive customer experiences and minimize the bad ones. However, since we are human, even the best customer care employee can have a bad day (or just a bad customer that there is no pleasing). So the next rule, should be on how we recover from a bad experience. 70% of complaining customers will continue to do business with you, if you resolve the complaint promptly, positively and professionally. (Heidi’s 3 P’s ï) What policies and procedures do you have in place for addressing problems? How much leeway do you give to your staff to make a decision in the best interest of the customer (and therefore the company)?

Please, don’t be “pound wise but penny foolish”. A happy customer is worth their weight in gold!