Since the birth of the social web, customers have turned to the web and the social platforms to seek for help, support and guidance regarding products they are using or interested in purchasing.
The millennials are early adopters of the social web and they know how to embrace it & work it to their needs. The rest of the world is also turning to the internet for much quicker responses and support.
This is a good indication for businesses to start adopting the social web to offer enhanced customer satisfaction to their customers and future customers.
7 Common Problems That Impede Customers Loyalty
- It takes too long to resolve an issue.
- Over promising, under delivering.
- Customers treated rudely or with suspicion.
- Constant redirection from person to person, and having to repeat the issue each time.
- Customers having to follow up to check if issue is resolved.
- Being pushed to buy something—even before a support issue is resolved.
- Not able to find or finding the FAQ unhelpful, incomplete, or outdated.
Businesses are still not able to build a solid product or a service model around the principles of the web to improve customer satisfaction.
Customers turn to Facebook, Twitter, even Google for answers hoping that some blogger out there would have some solution to their problem. Sometimes customers get lucky and sometimes they don’t and in those scenarios the customer either gets frustrated and stops using the product altogether or starts to vent it out with negative reviews on the web.
This sort of negative review has a huge impact on your brand on the social web and its important for businesses to keep it under control.
This articles focuses on the key problems customers face and how they use the social web to get their solutions. This will also help businesses find out optimal ways to improve customer satisfaction and maintain their brand value.
Table of Content
- What Is Customer Satisfaction?
- Importance Of Customer Satisfaction
- Deflate Consumer Repurchase Intentions and Loyalty
- Be a Point of Differentiation
- Reduce Customer Churn
- Decrease Customer Lifetime Value
- Increase Negative Word Of Mouth
- Expensive To Retain Customers & Acquire New Ones
- Customer Satisfaction Survey
What Is Customer Satisfaction?
Customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. – Wikipedia
Importance Of Customer Satisfaction
If you do not keep your customer satisfaction in check, it can explode on the web in a negative way and ruin your brand reputation. To avoid this negative impact that is created by the customer, businesses need to work hard to first satisfy their customers. They need to understand the importance and value of customer satisfaction.
Customer satisfaction is important for businesses because they can:
- Deflate consumer repurchase intentions and loyalty
- Be a point of differentiation
- Reduce customer churn
- Decrease customer lifetime value
- Increase negative word of mouth
- Expensive to retain customers and acquire new ones
These six customer satisfaction issues can be addressed by business by using the social web. Lets take a look at the issues in detail and what businesses can do to keep the customer happy and delighted.
Deflate Consumer Repurchase Intentions and Loyalty
The first thing the lack of customer satisfaction impact is the customer re-purchasability and customer loyalty. As the saying goes its easier to retain a customer than to get a new one.
If you cannot improve or maintain customer satisfaction, customers would quickly shift their focus to other companies and products.
In order to maintain customer repurchase intentions and loyalty, its a good practice to offer improved customer service than the regular 1800 number and email options.
Offer customer services in the place where the customer is so that the customer does not have to go anywhere to be satisfied.
In order to achieve this you need to first identify where your customers are the web and then set up shop.
On the social web its most likely that they are on Twitter and Facebook. By encouraging your customers to reach out to you via these platforms you gain partial control over what the customer does.
Instead of ranting on social platforms they start to reach out to you before they do so.
This gives you an excellent opportunity to improve customer satisfaction.
Be a Point of Differentiation
Online customer satisfaction can be a point of differentiation for your business on the social web. By improving your customer service to include the web you are standing out from what your competition is doing.
In order to stand out from your competitors you can perform some simple competitor research to get insights into how your customers are doing on the social web to satisfy their customers.
With this data you can try and offer better services to satisfy your customers.
By being better than your competitor your customers even if unhappy with you they can see your competition is much worse. This does not mean that you should be content with what you do. Always strive to improve customer satisfaction on the social web.
Reduce Customer Churn
Customer churn refers to when a customer ceases his or her relationship with a company. When it comes to online businesses a customer is considered as churned once a particular amount of time has elapsed since the customer’s last interaction with the site or business.
The best way online businesses can reduce customer churn is to focus on three key aspects of customer satisfaction. They are:
- Meet customer expectations
- First impression
- Always add value
Address these pointers and step forward in the right direction to not just creating customer satisfaction, but creating customer delight.
Decrease Customer Lifetime Value
Online businesses are continuing to struggle with policies and strategies resulting to losing the lifetime value of customers.
With the growing competition and the birth of businesses that are purely online, customers are quickly shifting companies and who offers them the best services as businesses lack to maintain a good relationship.
Failing to address customer concerns on the web and offline is resulting in the decrease of customer value.
As opposed to that if only online businesses can add value and delight customers they can increase customer lifetime value and it is important for businesses to pay importance if they want to keep their existing customers.
Increase Negative Word Of Mouth
Even if you are an online business offering online services purely, it can still create a ripple of negative offline word of mouth. Online networking has only strengthened offline networking. As a matter of fact it has improved the connections a person has.
Stay focused to keep your customers happy no matter what type of business you are. Satisfy your customers online and keep them happy and the world of mouth will turn out to be positive and boost sales and new customer sign ups.
Expensive To Retain Customers & Acquire New Ones
The lack of customer satisfaction or the lack of offering customer service to your customers can hinder you business in the long run.
It can become too expensive for you to retain customers as you spend more on value added offerings. Winning new customers can become more of a challenge because of the negative impact existing customers have created about you on the social web.
Its important to give heed to both aspects and maintain a balance between the two in order to retain and win new customers.
Customer Satisfaction Survey
A simple customer satisfaction survey using tools like Survey Monkey can help you understand how satisfied your customers are and how effective your strategies have been working.
When I say customer satisfaction survey, I’m talking more about surveying to measure your online businesses net promoter score. Try this pre made template to make things easy for you – Net Promoter Score Survey Template.
If you do not know what NPS – Net Promoter Score is, let me tell you. Its a popular way of measuring your customers loyalty. It measures the likeliness of a customer referring you to someone else. The customer is asked how likely he would recommend you on a scale from 1 to 10.
Traditional customer satisfaction measures typically omitted willingness to recommend, instead focusing on aspects like perceived value, customer satisfaction, corporate image, and rational and emotional commitment.
From the image above you can easily understand and assess your NPS score. Take the percentage of all the respondents who are standing as promoters of your brand and subtracts by the percentage of detractors. This is an simple benchmarking metric to help you get started with measuring your success online.
I’ve taken a very different approach to this article, even though I’ve titled it as how online businesses can increase customer satisfaction, I have focused more on the negative aspects or issues that result in customer dissatisfaction.
I’ve taken this approach because, if you acknowledge your problems you can address them and if you address them you can solve them.