Tag Archives: customer satisfaction

When You Don’t Have What the Customer Wants

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When You Don't Have What the Customer Wants

GUEST POST from Shep Hyken

I recently responded to a question on LinkedIn: A customer is furious about an out-of-stock item. How do you turn their frustration into satisfaction?

I added a second part to that question. What if what the customer wants is something you’ve never had in stock? Some customers might still be angry that you do not have what they want. And even if they aren’t, whether the item is out of stock or you just don’t carry it, that doesn’t mean you can’t make the customer happy.

Before we go further, let me do a very quick recap of how to deal with any upset or complaining customer. This is my five-step process for handling complaints:

  1. Apologize for the problem.
  2. Acknowledge what the problem is.
  3. Discuss the resolution. (In a moment, I’ll cover this in detail.)
  4. Accept ownership. It may not be your fault, but now you own taking care of the customer.
  5. Act with urgency.

So, back to #3, the resolution. Is the item the customer wants temporarily out of stock? If so, when will it be in, and when can the customer expect to receive it? Giving customers information gives them a sense of control.

Shep Hyken Empty Shelves Cartoon

What if you’re out of the item and won’t get any more back in inventory? This is an opportunity to shine. If you can’t suggest a reasonable alternative, does a competitor have what the customer wants? Yes, I’m suggesting sending the customer to a competitor. Even if the sale goes to a competitor, the customer will realize you’re more interested in getting them what they want and need versus making a sale, which can go a long way in building trust that takes the relationship to a higher level.

One of my favorite examples comes from an Ace Hardware store. It was a very cold winter, and a customer was upset to find out the store was out of space heaters. Rather than say, “Sorry,” and send the customer away, the associate called a competitor, confirmed they had a space heater, and asked them to hold it for his customer. And who do you think the customer loved after that experience? (It’s a rhetorical question, but just in case you can’t figure it out … Ace Hardware!)

Any time a customer is unhappy or has a complaint, it’s an opportunity to resolve the problem and turn a Moment of Misery™ into a Moment of Magic®. For inventory issues, it’s an easy fix. Always think to yourself, even if you have to give up the sale to a competitor, “Is what I’m doing right now going to get the customer to come back?” When you have the customer’s best interest in mind, they will!

Image Credits: Unsplash, Shep Hyken

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Turning Around Declining Customer Satisfaction

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Turning Around Declining Customer Satisfaction

GUEST POST from Shep Hyken

One of our subscribers asked, “How can I reverse our company’s declining customer satisfaction ratings?”

Not knowing specifics about the company, its customer feedback, how long the scores have declined, and other details makes it a difficult question to answer. Still, I felt compelled to share something that could help. What I came up with is a list of three “to-dos” that any company should use to find out what’s causing a downward trend.

As I was writing down my ideas, I realized that this list could also be used to find out what is causing customer satisfaction to go up. After all, don’t you want to know why customers are happy – and then do more of the same? Think about that as you read my short list. With that in mind, we’ll focus on the question of declining customer satisfaction.

Feedback Collection Cartoon Shep Hyken

My first response was three words: Find the friction!

Often, there are specific places in the customer’s journey that cause a drop in satisfaction. I refer to those as friction points. We want to eliminate or at least mitigate them. So how do you find these places? Three ideas:

  1. 1. Mystery shop your company. If you want to find out what customers experience, become a customer of your own company. Find out what customers experience during busy times, how long they have to wait on hold, how long it takes for someone to respond to an email and more.
  2. 2. Ask your customers. Get feedback through surveys and direct communication. When you hear about a complaint, follow up directly with the customer to learn more. Don’t assume it’s a one-off situation. If it’s happening to one customer, it could happen to many.
  3. 3. Ask your employees. The people working the front line, which includes the customer support team, salespeople and anyone else who interacts directly with customers, hear customer comments, both good and bad. Have ongoing conversations with front liners to learn what they are hearing.

Learning what customers are experiencing firsthand and having conversations with customers and employees is far different than reading a report. There’s nothing wrong with a report, and I advocate for that as well, but why not both? And once you have the information, don’t just talk about it. Do something about it. Find where there’s friction. Learn what makes customers unhappy. Change what needs to be changed. Then, watch for a trend of declining complaints and start to reap the benefits of rising customer satisfaction.

Image Credits: Pexels, Shep Hyken

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Satisfied Customers Could Ruin Your Business

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Satisfied Customers Could Ruin Your Business

GUEST POST from Shep Hyken

What if I told you that satisfied customers could ruin your business? Most people think satisfied customers are happy and will come back. At least, it appears that way.

Many years ago, I used to begin my customer service keynote speeches with a question:

By a show of hands, how many of you believe it’s important to satisfy your customers?

As you might imagine, just about everyone raised their hand. Then, I shared the findings from a study by Vanderbilt University professors Anthony J. Zohorik and Roland T. Rust. They found that up to 40% of satisfied customers don’t come back – even though they are satisfied! And the reason is that they are just satisfied. The experience was average – not bad, but not great either.

In the competitive world we are in, this makes sense. So many companies and brands are trying to win customers over by delivering a better service experience. It makes sense that “average” or “satisfactory” doesn’t cut it.

In my recent customer service and CX research (sponsored by RingCentral), I included a question that would give us an updated number for this concept. We asked:

If you were to rate a customer experience on a scale of 1 to 5 – where 1 is bad, 2 is fair, 3 is average or satisfactory, 4 is good, and 5 is excellent – how likely are you to return to this company or brand if you rated them a 3?

There were five possible answers: Never, Not Likely, Not Sure, Likely, and Very Likely.

The survey results are worth paying close attention to. In 2024, almost one in four American consumers (23%) will not likely or never return if the experience is just satisfactory.

If you search synonyms for satisfactory, you’ll find words like acceptable, adequate, bearable, and more. By today’s standards, satisfactory is mediocre. And most customers won’t put up with a mediocre experience.

I’ve said this many times before. Our customers are smarter than ever when it comes to customer service and experience. They have learned from the best. Companies like Amazon, Chick-fil-A, Apple, and other customer experience luminaries promise great service, deliver on their promises, and set the bar higher for others.

You don’t have to be an Amazon or an Apple to deliver amazing service. But you do have to meet expectations. If you do that consistently, customers will positively describe their experience with you. They will say your people are always helpful, friendly and knowledgeable. None of that is over the top, but when you put the word always in front of those words, you’re operating at a level beyond average or satisfactory. That’s a big part of what gets your customers to say, “I’ll be back!”

(To get the full report, download The 2024 State of Customer Service and CX Research.)

Image Credits: Pexels, Shep Hyken

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Are Your Customers Actually Happy?

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Are Your Customers Actually Happy?

GUEST POST from Shep Hyken

Are your customers happy, or not? How do you know? How often do you ask them? If you do ask them, and they tell you, what do you do with that information?

This is all about customer feedback. If a customer is willing to take the time to give you feedback, good or bad, it’s a gift. Treat it as such. It’s an opportunity to know what’s working and what’s not. And there are many ways to get that information.

A common way to seek feedback today is through a survey emailed after the customer interacts with the company or brand. Unfortunately, some companies go to the expense of designing and sending the survey, asking the customer to spend their precious time completing the survey, and then don’t act on the customer’s suggestions. Our annual customer experience research found that 57% of customers assume the company won’t make any changes based on their responses to a customer satisfaction survey. And some customers will stop doing business with a company or brand because of their surveys. Our research found that 20% of customers stopped because they sent too many surveys, and 18% stopped because the surveys were too long.

Recently I had my car in for its annual service, which included an oil change, fluid checks, filter replacements and more. Within an hour after I picked up my car, I received an email requesting feedback. From past experiences, I knew this would take five to 10 minutes to complete. I chose not to respond, because I had many other things to do in the short time I had left in the office that day. I don’t know what percentage of customers complete the survey, but maybe there is a different way to get feedback.

Notice I said a different, not necessarily better, although I’ll let you decide whether it is better. When I picked up my car, there could have been a tablet with four buttons to select from, asking me if I was very happy, somewhat happy, somewhat not happy or not happy. It would have taken me three seconds—probably less—to tap on one of those buttons. By the way, there could also be an option for me to leave feedback if I wanted to take a moment to do so. Regardless, the quick press of a button is much easier than a 10-question emailed survey with quantitative and qualitative feedback questions.

I recently interviewed Miika Mäkitalo, the CEO of HappyOrNot, one of the leading customer feedback solutions used by more than 4,000 brands in over 100 countries, on Amazing Business Radio. There’s a good chance you’ve seen HappyOrNot feedback technology in a store, restaurant, stadium or airport. It is a small tablet or kiosk with four large buttons as I just described in my auto repair center example. This simple technology gives you fast and actionable feedback that can be used and taken advantage of almost immediately—and at the same time, it respects your customers’ time.

And as powerful as that instant feedback is for customers, Makitalo suggests his HappyOrNot technology is also a perfect solution for employee feedback. Imagine a terminal or tablet in the breakroom where employees can anonymously (unless they want to share their names) leave a simple “I’m happy or not” message with the quick push of a button. Consider all the feedback you could gather, such as, “How happy are you with the new personal time (PT) policy?” Or, “How happy are you with the new food vendor in the cafeteria?” You get the idea. Get feedback from employees. Their happiness will be felt by customers. And the opposite is true. Unhappy employees will taint the customer experience. As I often say, “What’s happening on the inside of an organization is felt on the outside by customers.”

So, if you want to know what your customers—and employees—are thinking but aren’t sure where to start, this simple solution could be the answer. Ask one question at a time … and don’t forget to act on the feedback!

This article originally appeared on Forbes.com

Image Credits: Shep Hyken

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The Impact of Omnichannel Experiences on Customer Satisfaction

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The Impact of Omnichannel Experiences on Customer Satisfaction

GUEST POST from Chateau G Pato

In our increasingly digitally connected world, consumers are no longer limited to a single channel for interacting with brands. The rise of multiple touchpoints – online, offline, mobile applications, social media, and more – has given birth to the omnichannel customer experience. This new paradigm has drastically changed customer expectations, prompting brands to adopt a cohesive and holistic approach to engage, assist, and delight customers. In this thought leadership article, we explore the impact of omnichannel experiences on customer satisfaction, using case studies to highlight its transformative power.

Case Study 1: Sephora

Sephora, a renowned beauty retailer, recognized the importance of embracing omnichannel experiences to enhance customer satisfaction. They strategically integrated physical stores, an e-commerce website, mobile applications, and a robust loyalty program, seamlessly connecting every touchpoint of the customer journey.

Sephora’s “Beauty Insider” program exemplifies the success of their omnichannel approach. Customers can sign up for free and accumulate points across all channels. Regardless of whether they shop in-store, online, or through the mobile app, customers always receive personalized recommendations, exclusive offers, and tailored rewards. This cohesion and convenience are major contributors to customer satisfaction.

According to a Harvard Business Review study, Sephora’s Beauty Insider members spend an average of three and a half times more compared to non-members. By embracing an omnichannel mindset and valuing customer satisfaction, Sephora fosters loyalty, drives sales, and inspires customer advocacy.

Case Study 2: Nike

Another prime example of the impact of omnichannel experiences on customer satisfaction is Nike, the global sportswear giant. Nike leverages technology to create a seamless and personalized experience that surpasses customers’ expectations.

In 2018, Nike launched its NikePlus membership program, which allows customers to connect their in-store, online, and mobile app interactions under a single account. This integration enables customers to browse products, reserving them for in-store try-ons, receiving personalized training programs, and accessing exclusive events. Nike’s omnichannel strategy is explicitly designed to enhance their customers’ satisfaction by making interactions effortless and tailored.

As a result, NikePlus members spend almost triple the amount per year compared to non-members. This success demonstrates that by providing an omnichannel experience centered around customer satisfaction, brands can significantly impact their customers’ buying habits and generate long-term loyalty.

Conclusion

The impact of omnichannel experiences on customer satisfaction cannot be understated. Brands that embrace a cohesive and holistic approach, integrating all touchpoints across the customer journey, stand to gain numerous benefits. Sephora and Nike’s case studies demonstrate how an omnichannel mindset can lead to increased customer spending, improved loyalty, and enhanced satisfaction. By putting the customer at the heart of their strategies and leveraging technology to create seamless experiences, brands can thrive in today’s customer-centric landscape.

SPECIAL BONUS: Braden Kelley’s Problem Finding Canvas can be a super useful starting point for doing design thinking or human-centered design.

“The Problem Finding Canvas should help you investigate a handful of areas to explore, choose the one most important to you, extract all of the potential challenges and opportunities and choose one to prioritize.”

Image credit: Pixabay

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