Keep customers satisfied
These days “Customer Care and Satisfaction” are the buzz words and is a very popular concept, especially in the retail environment.
Customer care is what makes a business a sustainable, profitable and a growing enterprise.
But what is customer satisfaction and how does a business take care of their customers? Why is customer satisfaction and customer care important for both the business and the customer?
If you consider the well known fact that 80% of all new business or new transactions that take place are the direct result of existing business, then I wonder why customer service is not the most important focus of management and business owners.
The value of loyal customers to the business can easily be recognized when you consider the following: Loyal customers buy more products more often; Loyal customers are more forgiving when problems occur; Loyal customers are less focused on price; Loyal customers refer other potential customers
In general, customers are prepared to pay a fair price for most products they purchase. They understand that a business must be entitled to make a fair profit but in return customers expect to be treated in a fair and honest manner. It is very interesting that according to certain available statistics, price is only 30% of the reason why customers support a particular business.
Relationships and loyalty are the most important reasons why customers will support a particular business. How often does it happen that you purchase goods and services form a business that you have been referred to? I buy my meat from a particular butcher, not because of the prices, but simply due to the relationship I have with the staff behind the counter. As a result I often refer friends, family and colleagues to the same butcher.
The other side of the coin is that 68% of customers who do not continue to support a particular business refrain due to the attitude of a single employee or staff member.
It is true that customers seldom complain. They will simply stay away.
We often hear that the customer is king. But how do I, as a business owner or manager, know that I'm providing the kind of service and customer care that is needed? The answer is simple: If you measure you can manage.
In today's world the very important action of measuring customer satisfaction is becoming non negotiable. The information gathered is priceless and once this measurement takes place, the owner is given a management tool that will, if utilised in a correct manner, have an important influence on the sustainability of the business and ultimately the profitability.
Customer care is simply making sure that the staff in any business understand and are provided with the necessary tools and skills to perform their duty to perfection.
Owners and managers of businesses should then ensure that staff members are trained in customer care and relationships. Everyone in the business should understand that this is the lifeline of a business.
In future articles I will discuss the expectations of customers as well as businesses.
Nico Venter is the MD of Ralindo 24(Pty)Ltd. (www.ralindo.co.za), a company that has been involved in the measurement of customer satisfaction and customer care training throughout sub-Saharan Africa.
Articles