Terry Corbell, The Biz Coach
By Terry Corbell
Business Consultant

Why Your Customers Stay or Leave – Insights from Study



Despite all the emphasis on speed in customer service, it’s not the salient factor in keeping customers happy.

A study confirms that the power of emotion is most important, according to a January 2013 published report in QSRweb.com.

“Understanding that emotion – the human connection – is at the heart of the customer experience is key to building customer loyalty and advocacy in today’s socially-connected and ever-evolving world,” the publication quoted Sharon Daniels, CEO of AchieveGlobal.

ID-100363294 nenetus“While slashed prices and special promotions may get consumers in the door, an inability to connect on an emotional and human level while delivering service will hamper any business’ customer engagement efforts,” Ms. Daniels explained.

The study, “Why Your Customers Stay or Stray: Insight from Global Customer Experience Research,” indicated 33 percent of customers prefer being treated well over problems being solved fast.

“No matter where you are in the world, a positive customer experience is marked by respect, simplicity, solutions and responsibilities,” Ms. Daniels asserted.

“Delivering on these simple but critical expectations should be central to any company’s business strategy,” she added. “Consumers are emotional beings, and training customer-facing employees to recognize emotions and respond in a concerned, effective and professional manner is essential to owning the customer experience.”

Irritating behaviors cited by customers

— Abrupt, unhelpful behavior cited as biggest mistake by customers – 46 percent

— Employees uttering the word, “no” – 17 percent

— Employees saying, “I don’t know” – 16 percent

Social Media

— Customers who say they post negative reviews online – 40 percent

— Customers who shop at a competitor after one bad experience – 50 percent

— Customers leave altogether after three or more poor experiences – 93 percent

Conclusion

AchieveGlobal’s findings coincide with what I’ve long maintained. Even if you must tell customers what they don’t want to hear, there are positive ways to do it.

Customers go elsewhere 70 percent of the time because they feel taken for granted.

From the Coach’s Corner, additional tips:

Want More Business? Build Trust with Consumers…Here’s How — With consumers trying to cope with information overload – you will increase sales with long-term customer loyalty – if you build trust by using best practices. It may be an obvious approach, but it’s confirmed by a 2012 study that shows 84 percent of the respondents declared trust must be warranted before they buy.

Your Supply Chain Can Meet the Expected Standards of Customers, If…— A company that fails to meet customer expectations on store inventory and delivery has problems in supply chain management. Such a company minimizes its profits. Worse, it’s a red flag about competitiveness and long-term sustainability.

Profits: Size Doesn’t Matter but Image, Professionalism Count — Appearances and professionalism can make your small business seem huge. If you look as though you’re substantial and that you can handle anything thrown your way – your odds for success improve dramatically.

How Retailers Can Improve Operations for Profits — Many retailers could turn their operations into higher profits, if they do a better job of utilizing their customers’ data according to a study. That includes adequately learning insights by better engaging their employees who deal with customers on a regular basis.

Why Companies Are High Maintenance to Customers (but Don’t Know It) — Businesses are losing more than they know because they inconvenience customers. Such negative customer perceptions result in lost opportunities in revenue growth, tarnished branding and smaller profit margins, according to a study.

The reason a dog has so many friends is that he wags his tail instead of his tongue.


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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.





Photo courtesy nenetus at www.freedigitalphotos.net

Seattle business consultant Terry Corbell provides high-performance management services and strategies.