One of the key advantages small businesses have over larger businesses is the
. While larger businesses often leave customers with the feeling of being a “number instead of a name,” the opposite is often true of small businesses, who usually get to know their customers fairly well. This rapport builds customer loyalty, an important advantage small businesses need to compete with the lower prices or wider selection a larger business can often offer.
Customers are willing to pay a premium for good service. According to recent research, nearly 70 percent of consumers are willing to spend about 13 percent more with businesses that excel in providing customer service. While customers are willing to spend more for a better experience, businesses don’t seem to be getting the message. The same research, conducted by American Express Global Customer Service Barometer, finds that nearly six in ten consumers say businesses are not improving customer service, and more than a quarter feel that businesses have actually reduced their focus on customer service in recent years.
Because of the disconnect between the public’s desire for good customer service and business’ production of it, there’s an opportunity for small businesses to create first class customer service experiences and reap the benefits of a loyal customer base that doesn’t mind paying a premium for products or services.
Here’s a few ways you can create a culture of first class customer service at your small business:
1. Listening. Customers will feel more valued by your business if they feel like their comments, questions and criticisms are valued. Encourage your employees to be active listeners, making eye contact and responding to customers when they speak. Even if they can’t directly address a customer’s question or complaint, the customers will have a more favorable opinion of your business if they feel your people are listening to them.
2. Show some empathy. If a customer is frustrated or angry, encourage your employees not to automatically become defensive. Encourage employees to show empathy for the customer and a desire to help them resolve their problem or issue. Also teach your employees how to resolve customer issues or deal with customer anger without becoming combative or upset themselves.
3. Create a customer first culture. Encourage employees always to put customer needs first in everything they do. From the stockroom to the store floor, from top management to back room office help, everyone in your organization should make providing customers with an excellent business experience their first priority.
4. Communication. If you’re running a service-based business, it’s important to communicate with your customers about the progress of your work. Fill them in on any changes, problems or delays. Customers are more likely to be forgiving of delays or other glitches if you keep them informed. Don’t bombard your customers with minutae, but do keep them abreast of how their project is going and informed of any beneficial or disadvantagous developments.
5. Be prompt. In today’s world of email and instant communication, people just don’t have the patience they used to. Companies that can’t quickly respond to their customers’ questions, complaints and concerns are quickly abandoned for those that can. The lesson here? Make sure that your employees get back to customers as quickly as possible when they call or write your business to prevent a more agile competitor from poaching your customers.
6. Be available. If customers can’t reach you, you can’t help them. Be sure you have enough staff to answer the phones, make one-on-one contact with customers in your stores, etc. Not having the necessary staff to field customer requests and needs can convince customers that your company is not serious about providing good service.
7. Enforce customer service policies. If you make a policy about providing great customer service and fail to take action when it is not followed, or fail to make the changes necessary to make the policy work, you send a message to your employees that your company isn’t serious about providing good customer service. As a result, many employees may cut corners or ignore the policies you’ve set forward. As a business owner, you must set policies that are actually feasible with the resources available to you, and ensure that those policies are followed. Start with the carrot, rewarding employees who provide exceptional customer service, but don’t be afraid of using the stick when unacceptable customer service occurs.
9. Hire people people. If your customer service reps aren’t friendly or polite, they shouldn’t be customer service reps. When hiring employees to deal with the public, it’s important to hire people who enjoy engaging with the public and who won’t immediately become defensive or hostile when confronted with an irate customer. Many small businesses use pre-employment screening questionairres to help determine whether job candidates have the interpersonal skills they’re looking for. Consider using one of these in your hiring process to ensure you hire the right staff for your customer service operation.
By creating a customer first culture in your business, you can reap the rewards of a loyal customer base who are willing to pay a premium for the high quality service you provide. Instilling this culture takes a
