Author Archives: Shep Hyken

About Shep Hyken

Shep Hyken is a customer service expert, keynote speaker, and New York Times, bestselling business author. For information on The Customer Focus™ customer service training programs, go to www.thecustomerfocus.com. Follow on Twitter: @Hyken

Paying Your Employees More Can Save You Money

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Paying Your Employees More Can Save You Money

GUEST POST from Shep Hyken

What’s the secret to keeping employees, getting them to work hard and provide a more engaging experience with your customers? There are two answers. The first is one word: Money.

Many years ago, I worked with a well-known fast casual restaurant chain. I was impressed by its low turnover and high customer engagement and satisfaction ratings. Its secret was higher starting pay, generous raises and a reasonable benefits package. All of that compensation led to attracting the best candidates, and more importantly, keeping them.

A recent RetailWire article covered the higher wages Costco pays its employees. Typical hourly employees (Costco refers to them as “assistants”) include cashiers, stockers, warehouse personnel and people running the Costco food courts. With a tighter labor market, it is tougher to find people to fill these roles (and others). It is reported that Costco’s wages are at the high end of the industry. A memo from Costco’s CEO Ron Vachris stated, “We believe our hourly wages and benefits will continue to far outpace others in the retail industry.”

While wages are higher, employee retention in retail has gone down. According to an article in The Economist, the average employee turnover rate in the retail industry is 60%. Costco’s turnover is 8%, which is an incredible 86.67% lower than the industry.

Does this mean the higher wages are being paid by consumers? The simple answer is no. The longer answer is why. Just because a company pays employees more, a resulting benefit, such as lower turnover, actually reduces the cost of the higher wage. Lower turnover results in lower hiring costs, which also includes the cost of on-boarding and training. The full cost of the higher wage is dramatically reduced to a point that might pay for itself.

But higher wages aren’t the only reason employees stick around, work harder and better engage with customers. As mentioned at the top of the article, there is also a second reason, and that is culture.

While some employees will stick around for the paycheck, if you want the most out of any employee, they must like their job, and that goes beyond the job description. It also includes who they work with and work for. The culture of a company helps retain the best talent.

Regardless of what you pay your employees, if they don’t like the company, the way they are treated, their boss or leadership, paying them more may not be enough. I won’t go into creating company culture, but you can check out a Forbes article from last year that covered the Employee Hierarchy of Needs with a focus on building a fulfilling workplace culture.

Happy employees mean happier customers. All the benefits mentioned translate to higher NPS and customer satisfaction scores. If you compare the highest-rated companies and brands for customer service and experience posted by the American Customer Satisfaction Institute (ACSI) and the highest-rated companies and brands by employees at www.Glassdoor.com, you’ll find many of the same names. This is further backed up by an excellent article in the Harvard Business Review titled “The Key to Happy Customers? Happy Employees” by Andrew Chamberlain and Daniel Zhao. Even though it was written just over five years ago, the insights are more relevant than ever.

Companies like Costco prove that investing in employees through both compensation and culture isn’t just good for employees. It’s good for business. Employee happiness is contagious. Customers pick up on it. And when customers are happy, they come back, spend more and tell others. And, that makes the leadership and investors happy too!

Image Credit: Wikimedia Commons

This article was originally published on Forbes.com

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Doing Personalization Correctly

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Doing Personalization Correctly

GUEST POST from Shep Hyken

Companies today face three critical marketing and Customer Experience (CX) challenges:

  1. How can you keep customers coming back?
  2. How can you get your customers’ attention so they don’t consider switching to the competition?
  3. How do you create an experience that makes price less relevant?

These questions and others can be answered in one word: Personalization.

It used to be that personalization was a marketing tactic. Simply using the customer’s name in the salutation of an email or letter, such as “Dear Shep,” was personalization in its most basic form. Include a reference in the body of the message, for example, what city the customer lives in, and you had what many considered to be a more sophisticated personalization program.

Today, the concept of personalization has blended into part of the customer experience. Using a name is barely a personalized experience. Using information about the customer that feels like the company or brand knows them takes marketing from promotional to customer experience.

For example, if I call a company that I’ve done business with and have questions about a new product I’m interested in purchasing or a customer service question, the company representative should have enough information about me to know how long I’ve done business with them, what products or services I’ve purchased, what problems, questions, or complaints I’ve called about and more. Using that information the right way is the beginning of a more powerful personalized experience. Customers like it when you know them.

And this concept goes beyond live interactions between a customer and an employee. A modern-day personalization messaging campaign is powerful and turns traditional email or text message marketing into a highly personalized experience.

This same experience can be used in email or text messages, either as part of customer support when customers “write in” with a question or for marketing when you want to push a message to the customer. Used the right way, you’re showing your customers that you know them.

On a recent Amazing Business Radio episode, I interviewed Ronn Nicolli, chief marketing officer of Resorts World Las Vegas. He talked about how storytelling can hit an emotional chord with a customer, helping to create and maintain an image that customers embrace and look forward to. And when the customer can relate to the story—or maybe they are part of the story—you connect at a different level. A higher level.

Nicolli said, “Ten years ago, email marketing was like fishing with dynamite. Throw the dynamite in the water—in the form of a big email campaign—and see what floats to the surface.” It was a mass marketing campaign, and the extent of personalization was the customer’s name. Today, because of advances in technology, Nicolli says, “AI gives us the ability to market in mass, but on a one-to-one basis.”

What you’re selling may be the same for everyone, but the message is highly personalized by merging the customer’s name, dates they did business, comments they made and more into the message. Nicolli referred to the AI program as an intelligent learning program.

Curating personalized messaging and visuals in mass that speak to each individual is going to resonate far better than a general message with no personalization other than the customer’s name. Nicolli shared that he can send out a million emails, and the messages are all re-curated to ensure they are meaningful and speak directly to the customer. For example, the resort may want to promote a seasonal package to its database. A message to a customer/guest who comes in with a group of friends for college basketball’s March Madness tournament weekend will receive a different email than a customer who frequents the hotel with a spouse or loved one for the occasional romantic weekend—even if the promotion is asking for the same call to action.

So, whether you’re personalizing the experience for customer support or a marketing message, it’s now all part of the customer experience. Our latest customer experience research finds that eight out of 10 customers prefer a personalized experience. They will even pay more for it, making price less relevant. They want to do business with or go to the place, like the title of the theme song from the hit 1980s TV sitcom Cheers implies, ‘Where Everybody Knows Your Name’.

This is what your customers want and expect. So, take your customer experience efforts to the next level with a personalization strategy that creates an emotional connection and gets customers to say, “I’ll be back.”

Image Credit: Shep Hyken, Pexels

This article was originally published on Forbes.com

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The Enemy of Customer Service is …

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The Enemy of Customer Service is ...

GUEST POST from Shep Hyken

I recently had the wonderful opportunity to interview Brian Hamilton on Amazing Business Radio. Brian is the chairman of LiveSwitch and an entrepreneur who has started, built up, and sold numerous businesses. At the end of every show, I ask, “What last nugget of wisdom can you share with our listeners?” He shared an amazing answer:

“The enemy of customer service is pride.”

As he shared what he meant by this profound statement, I knew it was going to be something I would write and talk about.

If you’ve been following my work, you know one of my favorite concepts is The Customer Is NOT Always Right! Let’s use that as a starting point to understand how pride can be the enemy of customer service.

When we’re taught (or told) by the boss that the customer IS always right, and one day a customer makes a statement that isn’t right or accurate, we have conflict. Or maybe the customer is argumentative. We have been taught and told – maybe even ordered – to treat that customer as if they are right. But they are not. For example, what happens if you have a liberal 30-day return policy and the customer comes to return the item on day 60, insisting they were told the store had a 90-day return policy? Can you see the conflict? They are clearly wrong, and that conflict is where pride kicks in and gets in the way of good customer service.

Enemy of Customer Service is Pride

For some, it’s hard to put pride aside and empathize and sympathize with the customer’s errant point of view. While we may not directly tell the customer they are wrong, we say something that is combative or argumentative – even if we say it nicely. When pride gets in the way, we might find ourselves thinking:

  • “I know more than this customer.”
  • “They clearly don’t understand how our system works.”
  • “If they just listened to reason, they would realize they’re wrong.”

Those types of thoughts are our pride getting in the way of serving our customers at the highest level. Instead, consider this:

  1. Listen without interrupting, even if you know they’re wrong.
  2. When you do finally talk, choose the right words to avoid escalating the situation.
  3. Empathize and acknowledge their frustration or concern.
  4. Focus on finding a solution rather than proving who’s right.

Remember, the goal isn’t to win an argument. It’s to win the customer. (Another concept I’ve preached for years.) When we let go of pride and focus on helping, we create better outcomes for everyone involved. So, the next time you find yourself in a situation where you know the customer is wrong, ask yourself, “What’s more important, being right or being helpful?” The answer will guide you toward better customer service. Don’t let pride get in the way of good customer service!

Image Credit: Shep Hyken, Pexels

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Loyalty Programs Are More Than Just Repeat Business

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The Hidden Revenue Engine

Loyalty Programs Are More Than Just Repeat Business

GUEST POST from Shep Hyken

Loyalty programs have evolved far beyond their humble beginnings as simple “earn and burn” points systems. While many still view them primarily as marketing tools to drive repeat business, today’s loyalty programs have become sophisticated revenue engines that can significantly impact a company’s bottom line.

Consider this surprising statistic from our annual customer service research: 46% of U.S. consumers are willing to pay more for companies that have good loyalty programs. Even more telling, 39% have chosen one brand over another, even if it is more expensive, simply to earn more points in a loyalty program.

The transformation of loyalty programs into revenue generators became especially apparent during the Covid-19 pandemic. While airlines were grounding their fleets, their loyalty programs were still generating substantial revenue through partnerships with credit card companies and other businesses. If you use a credit card tied to your favorite airline, you have experienced this firsthand. You don’t have to fly on the airline to continue to earn points and awards. This revelation led to some interesting valuations of these programs, sometimes worth more than the core business itself.

I had a chance to do an Amazing Business Radio interview with Aleksander Kaczmarek, the vice president of loyalty at CarTrawler. CarTrawler offers a technology solution that connects car rentals to brands such as American Airlines, Uber, Emirates, American Express, Hilton and many other brands you are familiar with. If you’ve ever bought an airline ticket or booked a hotel and were asked if you needed a rental car, you may have experienced CarTrawler.

According to Kaczmarek, modern loyalty programs are far more powerful than the points and awards most people think of. They’ve evolved from simple point-collection systems into sophisticated customer engagement platforms. Today’s programs leverage technology to create seamless experiences that encourage customers to interact with brands in multiple ways. For example, many retailers’ loyalty apps now include features like mobile payments, personalized recommendations and exclusive access to products or services.

Kaczmarek says revenue potential comes from three key areas:

  1. Direct Program Revenue: This includes membership fees (think Amazon Prime or Walmart+) and partnership revenues from other businesses that want access to the program’s member base.
  2. Increased Customer Spending: Loyalty program members typically spend more than non-members, partly because they’re trying to earn rewards and partly because the program makes it easier to do business with the company. (This is reflected in our research and the findings mentioned at the top of the article.)
  3. Data Monetization: The insights gained from loyalty program data can help companies make better inventory decisions, create more effective marketing campaigns and identify new business opportunities.

According to Kaczmarek, the most successful programs share several characteristics that drive both customer engagement and revenue:

  • More than Points: They offer immediate value beyond points accumulation, such as priority service or exclusive access.
  • Emotional Connection: They create emotional connections through experiential rewards rather than just transactional benefits.
  • Partnerships with Other Businesses and Brands: They leverage partnerships to expand their value proposition beyond their core business.
  • Using Technology for a Better CX: They use technology to deliver a seamless customer experience across all touchpoints

However, companies need to strike a careful balance. Kaczmarek says, “There’s often debate about whether loyalty programs should focus on generating revenue or enhancing customer experience. The truth is, they need to do both.”

This dual focus is crucial because customers aren’t loyal to the program—they’re loyal to the experience the company provides. A great loyalty program can enhance that experience and drive revenue, but it can’t compensate for poor service or products.

Kaczmarek notes that the future of loyalty programs goes beyond anything we’re seeing today, especially in the travel industry. “Looking ahead, we’re seeing innovative approaches to loyalty programs emerge. Some cities and business districts are exploring ‘destination loyalty’ programs that reward customers for engaging with multiple local businesses. Others are creating coalition programs where complementary businesses share a single loyalty platform.”

So, whether you’re a small local business or a major corporation, loyalty programs can be more than just a customer retention tool. When properly designed and executed, they can become a significant source of revenue while strengthening customer relationships.

Just remember, the typical loyalty program doesn’t actually create loyalty. It is a marketing program that simply rewards and reinforces repeat business. True loyalty still comes from consistently delivering great experiences that make customers want to say, “I’ll be back!”

Image Credit: Shep Hyken

This article originally appeared on Forbes.com

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Six Revolutionary AI CX and Customer Service Strategies

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Six Revolutionary AI CX and Customer Service Strategies

GUEST POST from Shep Hyken

Artificial Intelligence (AI) is reshaping customer service and customer experience faster than we could ever imagine. But some are getting it wrong. While everyone’s racing to implement AI, many are missing the most important part – keeping the human element alive. Smart companies have found the balance between the human touch and the digital experience.

One of my favorite AI and marketing experts is Ford Saeks, who recently released his latest book, AI Mindshift: Unleash the Power of AI, Avoid the Pitfalls, and Keep the Human Experience. The book is filled with practical strategies and tactics to help organizations leverage AI while maintaining the personal touch. The book isn’t about which specific AI tools to use. Many of those will be obsolete in a very short time. It’s about how to think about AI, hence the title, AI Mindshift. With that in mind, here are some of my top takeaways from the book:

  1. The Human-AI Balance Is Essential: This is the book’s central theme. Don’t fall into the trap of thinking AI can replace your customer service team. Instead, let AI handle the routine questions and problems while keeping your people focused on what they do best – building relationships and handling more complicated issues. This creates efficiency without sacrificing the personal touch customers value.
  2. Speed Matters: Your customers want answers now, not later. AI can deliver immediate first responses through chatbots, but here’s the key – make sure your customers can seamlessly transition to a human agent when needed. I refer to this as Time to Happiness – how quickly you can move a customer from frustrated to satisfied. The faster, the better.
  3. Feedback Is Your Friend: Create processes to continuously gather both customer and employee feedback about AI interactions. Consistently use this data to refine and improve your AI systems. If customers are frustrated with certain AI responses, fix them quickly. Otherwise, your faulty systems may frustrate your customers and drive them to the competition.

  1. Practice “Ethical AI” in Customer Service: Saeks emphasizes two big areas: transparency about when customers interact with AI versus humans and making sure your AI technology protects your customers’ privacy and data.
  2. Proactive Support: If you want to impress your customers, identify issues or problems before the customer finds them. Then, tell them you did. AI can help identify these issues.
  3. Think Big, but Start Small: Begin AI implementation with specific, manageable customer service tasks rather than trying to overhaul everything at once. For example, start with AI handling basic FAQs, then gradually expand to more complex customer interactions as you learn what works. Remember the old saying, “Rome wasn’t built in a day.”

The bottom line is this: AI isn’t about replacing your customer service team. It’s about making them more amazing at what they do. Saeks’ book reminds us that the future of customer service and CX isn’t about choosing between AI and humans. It’s about combining both to create experiences that get your customers to say, “I’ll be back!”

Image Credit: Pexels, Shep Hyken

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The Importance of Real-Time Feedback

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The Importance of Real-Time Feedback

GUEST POST from Shep Hyken

I love talking to other Customer Experience (CX) experts, especially when they are “in the trenches,” working for companies and organizations that practice what they preach. I recently talked with one of those experts, Gabriel Masili of Granicus, a company that provides government agencies worldwide with technology and support that creates a better citizen experience. Not only does Granicus create a good CX for its customers, but it also helps its customers create a great experience for their customers. G, as he likes to be called, shared a great idea in our recent interview on Amazing Business Radio. He talked about collecting feedback during the experience in addition to asking for it after the experience.

Asking for Feedback during the Process

If this topic sounds familiar, it might be because I covered the concept of real-time feedback after interviewing Adam Alfia, whose company is called Realtime Feedback. G’s take on the concept is a little different, especially as it relates to the government’s efforts to create a better experience.

In our interview, G mentioned that asking for feedback during the process is a way to capture the customer’s general sentiment about the experience they are having. For example, if there is a digital process you’re taking the customer through, you might ask, “Do you understand what we’ve shared so far?” A simple option of yes or no will give you insight. If everyone answers “Yes,” you know you have a good process. If many customers answer “No,” you now recognize there is an opportunity to improve. But what if just a few people answer, “No”? That is when you escalate the customer to someone who can help in real time. In G’s words, “You extract the customer from the experience” and help them at that moment rather than force them to go through a process that, for them, could be confusing, cumbersome, or just not pleasant.

Real-time Feedback Cartoon Shep Hyken

‘In the Moment’ Feedback

This reminded me of an experience I am having more and more after checking into a hotel. About five or ten minutes after I’m in my room, the phone rings. It’s the person at the front desk checking with me to make sure the room is as expected. If it’s not, this “in the moment” feedback will fix any problems long before my experience is over.

The simplest example I can think of happens at a restaurant when the server comes back to our table a few minutes after the food was brought to us. He asked if everything was cooked to our satisfaction. If not, the entrée can be taken back to the kitchen. The alternative is to wait until the meal is over to find out about any problems, and by then, it’s too late.

The point is that there is a right time – even a better time – to ask for feedback, and sometimes, it is in the middle of the experience, not at the end. So here’s your homework. Sit down with your team and brainstorm how you can get feedback during the experience, not just after it. It may or may not be something you can do in your organization, but it is a conversation that is definitely worth having.

Image Credit: Pixabay, Shep Hyken

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Why Customers Don’t Trust Five-Star Reviews

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Why Customers Don't Trust Five-Star Reviews

GUEST POST from Shep Hyken

How important are online ratings and reviews? Our annual customer experience research found that 85% of U.S. customers say ratings and reviews help them decide if they want to make a purchase. That’s almost nine out of 10 customers!

However, that same number of customers (85%) also believe that some ratings and reviews are fake. While not all ratings and reviews are fake, the number of dishonest reviews has become a problem. RetailWire’s recent article about how Amazon is fighting back against fake reviews with strict policies and technology is an important place to learn how top online brands deal with the problem. The article also cites research from Fakespot estimating that 42% of Amazon reviews are fake.

It’s important to note that the fake reviews are not Amazon’s attempt to persuade consumers. On the contrary, the company is waging a war against fake reviews with stricter policies and proactive detection.

I recently made a purchase from a retailer selling through the Amazon Marketplace, which allows third-party sellers to list and sell products on Amazon. About two weeks after the purchase, I received a postcard asking me to leave a five-star review. A request to leave an honest review is acceptable, but that’s not what happened. This “third-party” seller offered a bribe for the positive review in the form of a $20 Amazon gift card or a payment directly to my PayPal account. All I had to do was send a screenshot or link to the review.

Fake reviews come in several different forms:

  1. Friends, company employees or others—not customers—are asked to leave reviews.
  2. Customers are bribed, like I was, to leave a positive review.
  3. Companies take down negative reviews and only leave the good ones.

And, not all fake reviews are positive. Negative reviews left by competitors—not customers—that lie about a company’s products or customer service to make them look bad can impact the reputation of a company or brand.

But having 100% five-star ratings and/or reviews isn’t good either. Our annual research found that 76% of customers are skeptical about the authenticity of reviews if they are all positive, and 30% of customers say they won’t purchase from a company that doesn’t have any negative reviews.

So, what’s a company to do?

  1. Make It Easy for Customers to Leave Reviews: If you want reviews, it’s okay to ask for them. Send an email with a link to leave the review.
  2. Respond to Negative Reviews: If most reviews are good, having a bad one isn’t going to hurt, especially if the company responds to it. A good response from a company can actually improve customer trust. Use negative reviews as opportunities to demonstrate good customer service.
  3. Respond to Positive Reviews: We coach our clients to respond to all reviews, not just negative ones. Depending on how many you get, this can seem like a daunting task. But if someone takes the time to leave a lengthy message of positive feedback, give them the respect of a simple response.
  4. Identify Verified Customers: If you look at Amazon reviews, you’ll see the notation of “Verified Purchase” next to the review. This is credibility.
  5. Don’t Game the System: Offering bribes and incentives for positive reviews crosses an ethical line. And, taking down negative reviews is, in effect, lying to your customers.

Almost every industry, not just B2C, has the opportunity for customers to leave reviews. Depending on the company (and industry), the review sites may not be public like a retailer’s website or a review platform like Google Reviews. Many industries in the B2B world have forums where customers can share experiences about companies and suppliers they do business with. With a shift in the importance of reviews, the company that practices the five tactics mentioned above will build trust. It’s not realistic to have 100% perfect reviews. As the research shows, customers don’t trust the “perfect” company. But they do trust and appreciate the authentic company. The best way to get excellent reviews isn’t to buy them or game the system. It’s to earn them!

Image Credit: Pixabay

This article was originally published on Forbes.com

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10 Business Mythstakes Some Leaders Believe

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10 Business Mythstakes Some Leaders Believe

GUEST POST from Shep Hyken

Some very popular business sayings are potentially detrimental to your organization. Last week I shared one of my weekly Forbes.com columns titled Five Business Myths You Cannot Afford to Believe. It met with plenty of positive feedback, so I’m going to share those five myths with you, plus five more. I’ve written full articles about some of these topics in the past. I now share this compilation of ten popular business myths. Don’t make the mythstake of believing them!

  1. A Repeat Customer Is a Loyal Customer: No, they are just a repeat customer. You must understand why they keep coming back. Maybe your location is more convenient. Maybe you have a lower price. As soon as a competitor has a better location or a lower price, don’t be surprised to see the “loyal” customer disappear.
  2. We Want Satisfied Customers: Our annual customer service research found that one in four (23%) don’t return to a business that just satisfies them. Satisfactory is average. We need to be better than that.
  3. Only the Front Line Needs Customer Service Training: Everybody in an organization is responsible for their role in customer service. If they aren’t dealing directly with customers, they are supporting someone who is, or they are part of the process that impacts the overall service and experience.
  4. Customer Loyalty Programs Create Loyal Customers: Loyalty programs are usually about points, perks and discounts. In reality, they are marketing programs that do a great job of bringing customers back. We love repeat customers, but don’t get caught believing your repeat customers are truly loyal.
  5. All Customers Should Be Treated the Same: All customers must be treated with similar levels of respect. However, today’s customers want a personalized experience. That means an individualized experience.

Shep Hyken Mythstakes Cartoon

  1. Technology Can Replace Human Interaction: Companies have tried, and it doesn’t work. Even Amazon has live customer support. I stand by something I said years ago: “The greatest technology in the world can’t replace the ultimate relationship-building tool between a customer and a business: the human touch.”
  2. A Quality Product Will Ensure Success: It helps, but it’s not a guarantee. Studies have proven that even if you have the best product but treat the customer poorly, they will find another place to buy what you sell, even if the product is not quite as good. And the opposite is true. The best service won’t get your customers to come back if the product doesn’t do what it is supposed to do. It takes the combination of a quality product and quality service.
  3. Customer Training Is a One-Time Event: Many companies include a customer service training module in their on-boarding. That’s a great start, but it needs to be sustainable. I like to say, “Customer service training isn’t something you did. It’s something you do.” Ongoing training and/or reminders are the key to a successful customer-focused culture.
  4. Customer Service Is What Happens When Customer Experience Fails: Customer service is not a department. It’s a philosophy to be embraced by everyone in the company. However, customer support is a department. Don’t confuse the two. One is about your culture. The other is about handling complaints and helping customers with their problems or questions.
  5. The Customer Is Always Right: We’ll end with my favorite. No, the customer is NOT always right, but they are always the customer. So, if they are wrong, let them be wrong with dignity and respect!

Image Credit: 1 of 850+ FREE quote slides at misterinnovation.com

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5 Business Myths You Cannot Afford to Believe

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5 Business Myths You Cannot Afford To Believe

GUEST POST from Shep Hyken

Sometimes a business idea or strategy seems to make total sense. Yet once it is implemented, it turns out to be a mistake. We rely upon research, stories and data to help us formulate what might work best. It’s okay to fail. But if you already know something is wrong, don’t make it worse by relying on a flawed business strategy.

I’ve taken some of my favorite topics I’ve researched and written about over the years and uncovered five myths that, while seeming to make sense, could cost you money, customers and maybe even your business. So, with that in mind, here are my five favorite business myths and the explanations behind why believing them cost your organization dearly.

  1. A Repeat Customer Is a Loyal Customer – The customer keeps coming back, so they must be loyal … wrong! Just because a customer comes back doesn’t always mean they love you. You must find out why they keep coming back. Maybe you have a physical location that is two miles closer than your competitor’s location. What if a competitor builds a store between you and your customer? You may find out they were loyal to your location and not to you. Or maybe your price is the lowest. If that’s what the customer loves, guess what happens when your competition offers a lower price? It turns out they were loyal to their wallet, not your store. There are a number of reasons customers come back that have nothing to do with how much they love the experience of doing business with you. But when you find someone who is truly loyal, keep doing what they love about you, and you may have them forever.
  2. We Want Satisfied Customers – This is a perfect follow-up to A Repeat Customer Is a Loyal Customer. No, you don’t want satisfied customers. You want loyal customers. In my customer service and CX research (sponsored by RingCentral), we asked more than 1,000 U.S. consumers if they were to rate an experience as “average” or “satisfactory,” how likely would they be to come back. Almost one in four (23%) said if they had a satisfactory experience, they would not be likely to or would never come back. Satisfactory is average, and the first opportunity the customer has to do business with a place that’s even slightly better than average, it’s a good possibility that they will move on.
  3. Only the Front Line Needs Customer Service Training – Customer service is not a department. It’s a philosophy that everyone in an organization must embrace. Everyone either deals directly with a customer, supports someone who does or is part of the process that drives or supports the customer experience. Someone in the warehouse may never see a customer, but if they fail to pack merchandise properly, they will negatively impact the experience, causing the customer to call and complain and make the company double its effort to send a product that isn’t damaged. Once the employees in the warehouse realize their impact on the experience, they will view their job in a new way and be focused on creating a better customer experience.
  4. Customer Loyalty Programs Create Loyal Customers – Customer loyalty programs are often about points, perks and discounts. An important question to consider is, “If you take those perks away, would the customer still be loyal to you?” That doesn’t mean you should do away with the program. While these types of programs may not drive true loyalty, what they will do is drive repeat business. So, recognize a loyalty program for what it is: a repeat business and marketing program. And if the customer keeps coming back, each and every time is an opportunity (beyond the points and perks) to validate their decision to do so with an experience that will keep them from even considering switching to your competition.
  5. The Customer Is Always Right – No, the customer is NOT always right, but they are always the customer. This is one of my favorite myths. Ten years ago, I wrote an entire article (Your Customers Are Not Always Right) devoted to this concept. For today, I’ll summarize it in one sentence: If the customer is wrong, let them be wrong with dignity and respect.

Don’t make the mistake of believing any of these myths. Rather than clinging to conventional wisdom that sounds good but potentially fails in practice, focus on understanding what’s behind these myths and what will work. Brainstorm with your team how you can “bust” these myths and create the experience that customers love and come back for.

Image Credit: Unsplash

This article was originally published on Forbes.com.

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The Journey Shapes Customer Perception

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The Journey Shapes Customer Perception

GUEST POST from Shep Hyken

Ralph Waldo Emerson, the American philosopher, is often credited with saying, “It’s not the destination, it’s the journey.” The idea is that the journey is just as important—maybe even more so—than arriving at the destination.

I recently attended a lecture by a magician who shared his “secrets” for creating a show that people want to come back and experience again and again.

The message was clear. No matter how amazing the tricks are, it’s the personality and patter (the words used throughout the show) that make people laugh and entertain them along the way—as in the journey created on the way to the end of a trick.

The concept of the “destination, not the journey,” not only applies in life and magic shows but also in customer service. Have you ever had a disagreement with someone in a company? (Of course, you have.) You knew you were right. You pleaded your case, asked to speak to a manager or supervisor, and after spending more time than necessary, the wrong was righted. The destination, as in the resolution, was what you wanted. The journey, as in what it took to get there, was a disaster.

Not all that long ago, I wrote an article about a parking lot that had open spaces. Everyone could see them, but the employee at the gate claimed there were none. He dug his heels into the ground and refused to let me park in one of the half-dozen spaces we could both see. I asked to speak to the manager. He made a call, and five minutes later—even though it seemed like more—he begrudgingly let me in. Did it have to be that hard? Of course, not!

The Journey Taints the Destination

Was this a fight where I won, and he lost? That’s what it felt like, but it shouldn’t have been like that. Too many times, a customer has an unnecessary “fight” with a customer service rep to resolve an issue. If the end result is what makes the customer happy, don’t make them fight to get there. That journey taints the destination, sometimes to the point where the customer, even if they get what they want, won’t come back.

In customer service, the journey is what truly shapes the customer’s perceptions. Businesses should strive to create a seamless, easy, and enjoyable experience at every touchpoint, just like a good magician’s show delights the audience from start to finish. By prioritizing the journey, companies can ensure that the resolution not only meets the expectations but also enhances the overall experience, encouraging repeat business and fostering trust and confidence, which leads to repeat business. Remember, it’s the memorable journey that will get your customers to say, “I’ll be back!”

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