Customer Experience News and Advice | ASBN Small Business Network https://www.asbn.com/manage-your-business/customer-experience/ Your #1 Resource for Small Business News, Trends, and Analysis Thu, 29 Feb 2024 15:26:09 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.1 Harnessing ‘Talk Triggers’ to boost customer retention – Jay Baer https://www.asbn.com/small-business-shows/atlanta-small-business-show/harnessing-talk-triggers-to-boost-customer-retention-jay-baer/ Tue, 20 Feb 2024 11:00:02 +0000 https://www.asbn.com/?p=70307

On today’s episode of The Small Business Show, we are joined by Jay Baer, an author, advisor, Hall of Fame keynote speaker, and customer experience researcher. ASBN anchor Shyann Malone joins Baer to discuss how businesses can utilize “Talk Triggers” to their advantage.

What are Talk Triggers? Well, according to Baer, this concept refers to the popular phrase, “Word of Mouth will help organizations attract and keep customers.” However, Word of Mouth is dynamically more important than people realize; some forms influence more than 50% of purchases. Despite this, many businesses lack an actual Word of Mouth strategy.

Key Takeaways 

1. By Baer’s definition, Talk Triggers are a strategic, proactive system designed to create conversations among customers. The first step to implementing a strategy is to understand that what’s average is ignored, and what’s different is discussed. Therefore, businesses must identify something customers don’t expect, which makes sense contextually regarding who they are and what they’re about.

2. For example, a hamburger restaurant in Sacramento, California, has spent $0 on advertising, yet they have a line out the door daily. At this restaurant, every customer has a chance to order food and select a card out of a 52-card deck. If that customer selects the Joker, then their whole meal is free. The restaurant typically has four winners a day. 

3. Oftentimes, most organizations don’t lean into what makes them different enough. Yes, more businesses have impeccable customer service, but every business strives for that level of success. So, Baer suggests companies’ talk triggers must be repeatable. 

4. Small businesses can implement talk triggers faster than larger businesses because they can tweak operations faster. Baer also advises entrepreneurs to understand the four truths of talk triggers in order for them to work, along with the five types of triggers described in his book Talk Triggers: The Complete Guide to Creating Customers with Word of Mouth. 

5. Businesses should take Word of Mouth seriously, as it has a massive impact on customer acquisition and retention. Yet, fewer than 1% of companies have a Word of Mouth strategy, presenting a massive opportunity for those who do.

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."

Did you know? ASBN America’s Small Business Network is now available to stream in over 70 million broadcasting households for users with Roku, Firestick, AppleTV, and mobile Android [download] and Apple IOS [download] devices.

]]>
Shep Hyken’s Customer Hierarchy of Needs: how to improve the buying experience https://www.asbn.com/small-business-shows/atlanta-small-business-show/shep-hykens-customer-hierarchy-of-needs-how-to-improve-the-buying-experience/ Mon, 19 Feb 2024 11:00:38 +0000 https://www.asbn.com/?p=70291

Welcome to The Small Business Show! In today’s episode, we’re diving into a fascinating discussion about “The Customer Hierarchy of Needs.” And we’re in for a treat because we have a special guest, Shep Hyken – an esteemed Author, Speaker, and Customer Service and Experience Expert who has written extensively on this topic. Get ready to learn some valuable insights from the best in the business!

Key Takeaways

1. As we all know, Maslow’s hierarchy of needs is a psychological theory that humans have two sets of needs. Hyken elaborates on this idea and proposes that customers expect the same from businesses. At the bottom of his pyramid is “Products should work as intended.” This focuses on the intent that customers expect their products to work properly after purchase. 

2. Next comes “Alignment.” Organizations should ask themself, is the company aligned with what we promised? If they claim to have great service, do customers agree? Often, alignment takes time to achieve. “So if you don’t get it right the first time, try again until you do,” asserts Hyken. Alignment then leads to the third part of the pyramid – Trust. Trust and safety come from comfortable experiences.

3. Hyken says, “More than ever, with AI, companies must protect your information and earn your trust, which goes back to alignment.” Moreover, the fourth tier is devoted to appreciation. Do businesses show enough appreciation for customers? In other words, do customers feel valued and thanked appropriately? 

4. Finally, at the top is “Emotional connection.” Organizations cannot establish loyalty without an emotional connection. Moreover, Hykne believes repeat business comes from customers saying, “I like them; they’re always friendly and nice,” As soon as that happens again and again, why would a customer risk doing business elsewhere?

5. Companies who aim to fulfill their customers’ hierarchy needs can learn from Amazon’s strategy. According to Hyken, Amazon falls on the pyramid because it prioritizes customer satisfaction over selling products that don’t work, even though they don’t manufacture their own products. However, the company stands behind its offerings and cares for customers who face any issues. This is due to Amazon’s commitment to fulfilling its promises, and it has gained the trust of its customers through its frequent outreach and updates.

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."

Did you know? ASBN America’s Small Business Network is now available to stream in over 70 million broadcasting households for users with Roku, Firestick, AppleTV, and mobile Android [download] and Apple IOS [download] devices.

]]>
Maximize your brand through effective media training – Lynn Smith https://www.asbn.com/small-business-shows/atlanta-small-business-show/maximize-your-brand-through-effective-media-training-lynn-smith/ Mon, 08 Jan 2024 11:00:10 +0000 https://www.asbn.com/?p=67910

Public perception can make or break any company, so media training is a strategic necessity for entrepreneurs. On the latest episode of The Small Business Show, we’re pleased to welcome back Lynn Smith. Smith is the CEO and Founder of Rylan Media, a keynote speaker, and podcast host.

Media training is beyond vital in today’s world of marketing and branding. However, Smith asserts to entrepreneurs, “You can be good on television, but if you’re not good at television, it can do more harm than good to your brand.” 

Key Takeaways:

1. Entrepreneurs typically have a very short time to create a positive impression on their consumers. For instance, entrepreneurs usually have three seconds for their consumers to like them. Within those three seconds, businesses have 30 seconds to get clients to trust them, “That’s how quick communication has to be to brand themselves effectively.” For example, with the social media platform TikTok, if people aren’t catching other’s attention fast enough, they’ll scroll right past your content. 

2. Entrepreneurs must have a clear message and a unique personality when branding a company. Smith invites leaders to consider the following:

  • Who do you want to be, 
  • What is your persona, 
  • How can you do that in the most authentic way possible—that’s how you’ll be effective. 

3. Entrepreneurs can overcome their “brain bully” (the voice inside your head) by simply giving it a name. Tell it to sit down and “Watch this.” This helps entrepreneurs to exude confidence and positive energy. “Confidence is contagious,” but it’s also believing that one can do anything despite any circumstances, while arrogance is believing that one is good at everything. 

4. If entrepreneurs are looking to attract investors, they need to simplify their message. The key is to focus on the headline, explain how it impacts people, provide validation from their experience, and discuss their future plans. 

5. Everyone who has been media trained by Smith accounts for better performance in Zoom meetings, have their notes in front of them, or during presentations. Still, Smith assures them that her company offers media training via “The Green Room,” and now they also offer “The Boardroom,” which is communications training. 

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."

Did you know? ASBN America’s Small Business Network is now available to stream in over 70 million broadcasting households for users with Roku, Firestick, AppleTV, and mobile Android [download] and Apple IOS [download] devices.

]]>
How entrepreneurs can attract and retain loyal customers – David Avrin https://www.asbn.com/small-business-shows/atlanta-small-business-show/how-entrepreneurs-can-attract-and-retain-loyal-customers-david-avrin/ Fri, 05 Jan 2024 11:00:20 +0000 https://www.asbn.com/?p=67903

In the wake of the pandemic, customers have become accustomed to convenience. However, not all businesses have adapted to this trend. In the latest episode of The Small Business Show, David Avrin, author, keynote speaker, and chairman of The Sounding Board, joins us to discuss how small businesses and entrepreneurs can gain a better understanding of their clients.

Avrin’s line of work is simple: to help organizations better understand and connect with their changing customers. Early in his career, he focused on branding and marketing. Back then, branding was centered around how entrepreneurs could more effectively describe what they did and how they crafted the words and imagery that differentiated them from the competition. Yet, with many changes in buying behavior and social media, branding has changed.

Key Takeaways:

1. Avrin emphasizes that firms looking to attract more consumers must understand that customers have more options than ever. The pandemic has, for the most part, accelerated the changes he has observed in the market. “What I’m seeing today is that it is more credible for others to write or review your brand rather than you describe your brand yourself,” says Avrin. 

2. Thus, he counsels business owners to consider the following when seeking consumers: Who are the clients with resources? Take a step back and evaluate how accessible your business is to work with and reimagine what your customers’ journey should be. Ultimately, “never take your eye off the ball,” be the greatest at what you do, and be preferable to consumers.

3. From the customer’s perspective, business-to-business (B2B) transactions typically start at the point of sale. However, from a business perspective, logistics, tracking, and shipping go on behind the scenes. Thus, the B2B experience for customers has become more profound due to how they receive and order, the transparency it provides, and the ability to track goods. The plague of convenience has led customers to anticipate simplicity, adaptability, and speed. 

4. The key to retaining loyal customers, according to Avrin:

  1. Be more accommodating. 
  2. Say yes more.
  3. Walk alongside the consumers on their journeys. 

However, in the event saying no is inevitable, Avrin advises entrepreneurs to say, “Let me tell you what I can do,” instead.

5. If businesses can expedite, reduce, or simplify the friction in their customers’ process, they become competitively advantageous. Avrin notes, “When businesses set their competitive advantage towards price, then it’s a race to the bottom, and you’ll have to make it up in volume.”

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."

Did you know? ASBN America’s Small Business Network is now available to stream in over 70 million broadcasting households for users with Roku, Firestick, AppleTV, and mobile Android [download] and Apple IOS [download] devices.

]]>
Powerful questions that positively influence buying decisions – Matt Easton | Easton University https://www.asbn.com/small-business-shows/atlanta-small-business-show/powerful-questions-that-positively-influence-buying-decisions-matt-easton-easton-university/ Thu, 04 Jan 2024 11:00:50 +0000 https://www.asbn.com/?p=67868

In business and in life, oftentimes what we ASK someone is far more powerful than what we TELL them. Matt Easton, founder of the Easton University sales coaching system, joins Jim Fitzpatrick on the latest episode of The Small Business Show to share a few of his “power questions” to help you have better conversations, get what you want, and succeed in business and life.

Key Takeaways:

1. Easton emphasizes that asking questions is often more powerful than telling then what you assume they want to hear during any given interaction. He notes how utilizing this approach can lead to better conversations and more successful outcomes.

2. In addition, Easton introduces the concept of three voices present in every conversation: the speaker’s voice, the listener’s internal monologue, and the voice of the listener. Recognizing these can significantly improve how one engages in conversations, especially in sales.

3. The specific “power questions” to drive a conversation forward, increase credibility, and uncover crucial information are designed to encourage the other person to speak more, revealing their intentions, needs, and decision-making processes. Here are some examples:

  • “What can I get you information on?”
  • “What research have you done on us?”
  • “Exactly what’s the most important thing we must accomplish on this call today?”
  • “What’s your biggest reason for needing [a specific product or service]?”
  • “What makes [a specific date] important?”
  • “What do you want to see first?”
  • “Does it make sense to [take a specific action]?”
  • “What’s a good next step?”

4. Easton and Fitzpatrick discuss the common mistake of talking more than listening in sales situations. They stress that listening and allowing others to express themselves can more effectively achieve desired outcomes, whether in sales or personal relationships.

5. Easton advises against making assumptions based on appearance or perceived status in sales interactions. He advocates for treating every customer with the same level of respect and dignity, following the same sales process, as this approach can lead to unexpected successes and improve one’s skills.

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."

Did you know? ASBN America’s Small Business Network is now available to stream in over 70 million broadcasting households for users with Roku, Firestick, AppleTV, and mobile Android [download] and Apple IOS [download] devices.

]]>
8 client onboarding tips that build trust https://www.asbn.com/manage-your-business/customer-experience/8-client-onboarding-tips-that-build-trust/ Mon, 20 Nov 2023 11:00:02 +0000 https://www.asbn.com/?p=56122 Congrats! You’ve finally landed that big client.

But before you can dive in and start working your magic, you need to build trust with your new client. After all, they’re entrusting you with a significant part of their business.

Building trust begins before you start working together and continues long after. Here are some tips for onboarding new clients and building that all-important trust.

1. Thank them for their business

A vital part of the trust-building process is expressing gratitude for the opportunity to work together. Thanking your client for their business shows that you value their trust and are committed to providing the best possible service. It’s a small gesture that can go a long way in building rapport and laying the groundwork for a successful partnership.

2. Let them know what to expect

When you’re first getting to know someone, it’s essential to be upfront about your expectations. Otherwise, you run the risk of setting yourself up for disappointment. The same is true when onboarding new clients. By being clear about what you expect from them, you can help to build trust and avoid misunderstandings down the road.

Of course, every client is different, so there’s no one-size-fits-all approach. But in general, it’s a good idea to let new clients know what your process looks like, what kind of feedback you need from them, and what timeline they can expect. By being clear about your expectations from the outset, you can help to ensure a smooth and successful working relationship with your new clients.

3. Be transparent and honest

Onboarding a new client can be a delicate process. They’re entrusting you with their business, and they need to know that they can trust you. That’s why it’s so important to be transparent and honest with them from the very beginning. That means being upfront about your capabilities, experience, and limitations. It also means being honest about your fees and what the client can expect in terms of results. The more open and truthful you are, the easier it will be for them to trust you.

4. Be responsive to their needs

In today’s digital age, clients expect to be able to reach out to us at any time, day or night. It’s necessary to be responsive to your client’s needs to build trust. Being responsive shows that you’re invested in their relationship and care about their needs. It also makes them feel like they’re a priority, shows that you’re invested in their success, and take their business seriously.

5. Give them a sense of control

Control can be tricky because you want to be in charge and steer the conversation, but at the same time, you need to be sensitive to your client’s needs and feelings.

An excellent way to strike this balance is to start by asking your client some questions about their goals and objectives. These questions will help you get a sense of what they’re looking for, and it will also give them a chance to provide input from the very beginning. Once you understand what your client is hoping to achieve, you can begin to develop a plan that will help them reach those goals. 

6. Address any concerns promptly

New clients are always slightly concerned when they start working with someone new. They wonder whether you’re going to be responsive to their needs or if you’re going to be able to meet their expectations. That’s why it’s so important to address their concerns promptly and efficiently. If you can show them that you’re responsive and care about their needs, it will go a long way. Be sure that your clients know that they can rely on you, and addressing their concerns is one of the best ways to build that trust.

7. Follow through on your promises

Follow-through is essential in any new relationship, especially when business is involved. Clients need to trust that you will do what you say you’re going to do, or they’ll take their business elsewhere. That’s why it’s essential to make sure you follow through on your promises during the onboarding process.

It may seem like common sense, but following through on promises is one of the easiest ways to build trust with new clients. If you tell them you’re going to provide a level of service, make sure you deliver. If you say you will be available at a particular time, make sure you’re available. The little things matter here – if you give your word, make sure you keep it.

8. Stay focused on the relationship

Listen to your clients, understand their needs, and respond to their questions and concerns. By taking the time to nurture your relationship from the start, you’ll lay the groundwork for a robust and long-lasting partnership.

Final Thoughts

Building trust with new clients is an art form in itself. But one of the most crucial steps to take when onboarding a client for the first time is being transparent and honest about your capabilities, experience, and limitations (among other things). Be responsive to their needs, give them a sense of control over the process by asking questions that will help you understand their goals, and address any concerns promptly. Most importantly, follow through on your promises. 

These simple steps will help you build a foundation of trust that can be relied on throughout the lifespan of your business relationship.

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."
]]>
Why customer experience is the ultimate marketing tool for small businesses https://www.asbn.com/manage-your-business/customer-experience/why-customer-experience-is-the-ultimate-marketing-tool-for-small-businesses/ Thu, 09 Nov 2023 11:00:34 +0000 https://www.asbn.com/?p=66952 Customer experience is how consumers feel about a business after interacting with them. Whether just visiting the business’ website or purchasing from a store, it all falls into the customer experience.

This phenomenon plays a crucial role in shaping the customer’s perception and satisfaction regarding the business. It is also essential for attracting new buyers and retaining the existing ones.

A positive customer experience increases loyalty, while a negative one can lead to dissatisfaction and damage to the reputation. Businesses must understand the impact of customer services to build trust, drive customer retention, and ultimately contribute to their success. 

Hence, we will look at the benefits of customer experience and ways to enhance it in the following paragraphs.

Benefits of Customer Experience

Heightened Brand Loyalty and Retention Rates: Exceptional customer experiences create a strong emotional connection between small businesses and their customers. 

When companies show attentiveness and are committed to meeting customer needs, they tend to earn more loyal customers. Satisfied customers are more likely to return, leading to higher retention rates and a steady income stream from repetitive business.

Positive Word-of-Mouth and Referrals: Customers naturally become enthusiastic brand advocates when they are delighted. Many share their positive experiences with friends, family, and colleagues. Through word-of-mouth and referrals, small businesses (SMBs) can use an extensive network of potential new customers.

Differentiation and Competitive Advantage: In a crowded marketplace where products and services are often similar, exceptional customer experiences can be the point of distinction. 

SMBs prioritizing customer experience stand out because they provide an emotional connection that distinguishes them from competitors. This differentiation becomes a powerful tool for attracting and retaining customers.

Enhanced Employee Satisfaction and Productivity: Customer experience is not just about the customer; it also positively impacts employees. 

When employees witness the positive effects of their work on customer satisfaction, they feel more connected and get higher job satisfaction. Happy employees are more engaged, motivated, and efficient.

Data-Driven Insights and Continuous Improvement: If small businesses want to prioritize customer experience, they need to have a thorough understanding of customer preferences, behaviors, and pain points.

So, SMBs that actively engage with their customers can collect valuable data and feedback. This data can help them improve various aspects of the business, not just customer experience.

Improved Risk Management:  Focusing on improving customer experiences can significantly boost risk management for small businesses. To guarantee top-notch customer experience, companies need to maintain transparent communication and ensure regulatory compliance. 

So in this way, companies can enhance customer satisfaction and prevent negative impacts on their reputation and potential legal complications. 

Moreover, building a loyal customer base through these efforts offers stability during uncertain market conditions, which reduces financial risks.

Reduced Costs of Service and Marketing: When small businesses focus on what their customers like, it helps them spend less on services and marketing; instead of guessing, they can listen to their customers and make marketing plans that match what customers want. 

It means they do not waste resources on things that do not matter to customers. By doing this, businesses can use their money more wisely, improving their services and marketing more effectively.

Ways to Enhance Customer Experience

  • Quick Responses: Businesses should be prompt in responding to customer queries; this will ensure that you genuinely care about their concerns.
  • Personalized Interactions: You can use their names and offer deals based on their preferences, giving them a sense of individuality and implying that the business pays excellent attention to detail.
  • Accessible Communication: Provide easy and cost-free communication with your customers. You can put a chat box on your website or ask them to write an email to you.
  • Post-Purchase Follow-ups: Check in with customers after they buy. Ask if they are satisfied and need assistance; this shows you value their feedback.
  • Easy Transactions: Make the buying process smooth and hassle-free. Minimize steps, simplify forms, and offer secure payment options. It can significantly reduce the cart abandonment rate.
  • Take Feedback: Listen to customer feedback, both positive and negative, and make sure to act on suggestions for improvement to show that you value their opinions.
  • Employee Training: Train your staff to provide excellent customer service. Friendly and knowledgeable employees create a positive atmosphere. Teach them about the balance between being forcible and persuasive.
  • Rewards and Loyalty Programs: Offer incentives for repeat purchases, like discounts or loyalty cards. It can encourage customers to come back.
  • Clear Policies: Have transparent return, refund, and exchange policies. Clarity in policies builds trust and minimizes uncertainty.
  • Data Security: Assure customers that their data is safe with you. Prioritize cybersecurity to protect their personal information.

Bottom line

In business, customers are like the strong pillars that hold everything up. Treating them with respect and showing gratitude is critical. This article has shown how important it is to make customers happy. Businesses can make customers stick around and help the company grow by doing these things.

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."

Did you know? ASBN America’s Small Business Network is now available to stream in over 70 million broadcasting households for users with Roku, Firestick, AppleTV, and mobile Android [download] and Apple IOS [download] devices.

]]>
How to properly conduct customer surveys https://www.asbn.com/manage-your-business/customer-experience/how-to-properly-conduct-customer-surveys/ Tue, 31 Oct 2023 10:00:58 +0000 https://www.asbn.com/?p=41673 Customer satisfaction is essential to the success of your business. It is important to understand what your customers are thinking, and how you can better serve them. The conventional method to understanding customer perception is to just ask them. Customer surveys have been around as long as the concept of customer service has. But how do you conduct a proper survey?

Ask the Right Questions

Customer surveys are only as valuable as the questions asked. Too many times, a business will be looking for quantifiable answers from survey questions and will ask leading A/B/C, or T/F questions to get to the presumed answers. The problem with this approach is that customers are forced to answer what the administrator of the survey wants them to answer, and not how they might answer if asked candidly.

That’s not to say that leading questions should never be asked, but the most revealing types of answers come from open-ended questions.

Instead of asking…

“How satisfied were you with your last visit to ABC Business? A – Very Satisfied, B – It was okay, C – Not at all”

Try asking…

“What did you like (or not like) about your last visit to ABC Business?”

…and allow the customer to tell you in their own words, instead of picking a canned answer. While this creates a bit of a nightmare in reviewing survey results, it will be extremely eye-opening to hear exactly what customers have to say.

Evaluate Responses

If you choose to ask open-ended questions, take the time to read through the results. It is almost a guarantee that the results will reveal something you may not have thought of. You will find some responses that are unique and you will find some that seem to follow a theme or pattern.

When a trend is identified, this is where the majority of the focus should be. When multiple customers feel the same way about an issue, it is worth your attention.

Substantiate the Responses

When evaluating surveys, it is also important to note that they are only the opinions. If you want to confirm these opinions, you must look to for the trends mentioned above. You can also corroborate opinions with actual data surrounding customer behavior, and sales. It is not uncommon for a customer to complain about a problem, only for the data to reveal that it might not actually be a problem at all.

The last thing you want is to start making changes to your business based on survey results, only to find those changes have negatively impacted your business. The point here is that customer surveys are important, but you must take the time to verify the claims with hard data.

Conclusion

A customer survey is not worth much on unless you take action on the feedback received. At the end of the day, your customers will appreciate that you listened to them by implementing changes to address their concerns and better serve their needs.

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."
]]>
5 KPIs to monitor to achieve peak customer success https://www.asbn.com/manage-your-business/customer-experience/5-kpis-to-monitor-to-achieve-peak-customer-success/ Thu, 05 Oct 2023 10:00:14 +0000 https://www.asbn.com/?p=62843 In your modern-day company, chances are you’re already looking for effective KPIs to monitor customer success. Customer success is crucial because most businesses, especially in the software corner, run on a recurring revenue model.

But precisely which KPIs should you be tracking? Why does customer service matter so much for your business? How can you make the most of the KPIs to drive your customer success and employee performance?

First, there needs to be a streamlined pattern of KPIs. Companies’ needs differ, and how they measure their customer success is unique. Hence, your KPIs will likely be different from the ones other businesses use.

It is also true that businesses have to, most importantly, drive the best value for customers to keep their net scores afloat. And the foolproof way to do that is through customer success KPIs. While they may differ from business to business, there are plenty of KPIs right now that overall assess customer satisfaction and maximize retention.

And, they’re adaptable for generally all businesses.

What are Customer Success KPIs?

Customer success is a term for a business initiative with the primary goal of ensuring that customers draw the maximum value out of a brand’s product. The whole objective of this initiative is to ensure that the customers attain their goals and desires behind purchasing your product.

If businesses can attain this level of customer satisfaction, it will mean that the latter will not churn. But then, how can you measure customer success?

If it were for a single customer, asking if they’d met what they wished to achieve with our product would be easy. But since it’s a large group of customers, we’d have to measure the success collectively. And how can businesses do that? By diving into data, of course.

This is where the key performance indicators are most crucial in customer success. They’re the metrics that help companies measure, define and track progress in their initiatives. Below, let’s look at the five KPIs every business can use to monitor customer success.

1. Customer LTV

LTV stands for lifetime value statistics of customers, which are helpful for analyzing the cost vs. benefit. It also factors in the user acquisition cost, and one can calculate this by a simple formula. All you have to do is multiply your total number of customers by the average earning you make off every customer each time. Mobile marketing and retention firm CleverTap, breaks it down in the following infographic.

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."

There are more uses to customer LTV than this. For instance, if you manage to boost the value of the product you’re selling in different ways, you will simultaneously see your customer LTV increase.

Perhaps a good way to do so is to add more appeal to your product tiers categorized as “highly-priced.” This will help you upsell the goods, but there’s more to it. If your upsells comprise a la carte items, rather than just the goods from the high-priced tier, making them more appealing for your customers through innovation will boost your upsells too.

Through this strategy, you will offer something of greater value to customers. When your customer LTV goes up, it means the satisfaction level of the customers has increased as well.

2. Churn

You may already know the churn rate as the average percentage of customers that abandon your brand every month. But apart from this churn, there’s something else that deserves your attention to.

If your high-tiered customers are converting to low-tiered products at an alarming rate, it is likely a sign that your high-tiered goods are falling short of delivering the value you promised. If customers do not get what they expected from your product, chances are they’ll ditch the high-tiered offerings and settle for something else.

This is also a churn commonly known as “gross dollar churn.” Hence, when calculating how customers weigh the value of products you offer, it’s essential to be mindful of the gross dollar and customer churns.

This KPI makes you aware of the class of customers that is abandoning you more frequently and identifies the problem causing it.

3. Onboarding

Customer support teams measuring success consider the engagement of customers as their first step in the entire process of onboarding. Teams that work on product-oriented growth typically have automated onboarding sequences.

Hence, they measure how customers have completed the onboarding sequence using the automated data. Moreover, the teams can measure the average time needed for new customers to see the onboarding process to a successful end.

4. Quarterly Renewed ARR

The ARR is “annual recurring revenue,” a common metric in subscription revenue and SaaS businesses. However, since a large percentage of businesses work on the recurring revenue model, this KPI metric is also useful for all of them.

So managers responsible for handling customer success can delve deeper into the satisfaction quotients by using “Quarterly renewed ARR.” This KPI refers to your business’s annual revenue percentage in each quarter.

Now if we were running our businesses in the ideal universe, this revenue percentage would be 100%. This would have meant that all our existing customers found the value they expected, continued subscribing, and no churning occurred. But alas, the reality is different.

Since we don’t live in a fantastical world, the ideal revenue percentage should be 90% and onwards. The ultimate goal should be to reach positively expanding numbers.

5. NPS: Net Promoter Score

The NPS metric is useful for showing you the level of loyalty you enjoy from your customers. It points you to the ones who are your fans and promotes your brand voluntarily. It also reveals the customers that could drive prospective buyers away from the brand.

Taking a net promoter score survey is a good start to using this KPI. You will have to ask your customers just one question in this survey, which is:

“How likely are they to recommend your brand to family or friends?”

You can provide a scale of 0 to 10 for your customers to answer and the likelihood of them recommending your brand to others. This is how the scores would read:

  • 0-6 means the customers are detractors. They’re the unhappy ones who have a higher tendency to keep prospective buyers away from your brand.
  • 7-8 are passive buyers. They’re the lot that is satisfied with the products and services they avail from you but too passive to promote you to others. Don’t expect word-of-mouth advertising from them.
  • Then comes the 9-10 scoring, which means a loyal fan following. They love your brand, engage enthusiastically with you, are satisfied with your products and services, and will surely recommend your brand to others.

Using the NPS metric, you can use your customer feedback for your business strategy. Moreover, it’s relatively easier to calculate and is a great way of discovering how happy or unhappy the customers are with you.

Why Businesses Need to Use Customer Success KPIs

1. Relentless Support

The market is becoming an increasingly competitive landscape for businesses to survive. A company must rely on something other than its customer support team to stay ahead of its customer issues. More help is required, and KPIs for customer success provide just that.

These metrics help teams go higher, enabling customers to proactively derive a thoroughly exceptional customer experience from the brand’s products and services.

2. A Bird’s-Eye Growth View

Happy and satisfied customers are the backbone of a company that wishes to grow. There’s no denying that customers hold the power to make or break a brand’s reputation in the marketplace.

If you use KPIs, they help you keep a watchful eye on customer success. Consider KPI metrics as an effective way of gauging the pulse of your customers at any given moment.

3. Decisions Supported by Data

Without the help of KPIs, what would companies have on hand? Nothing more than intangible data. But when KPIs come into action, the same intangible information converts into something quantifiable and far more substantial.

Trust us; these inferences are useful in making core strategic decisions for the company’s healthy future. For instance, with KPIs for customer success, you can better analyze your customers’ behavior. This helps you refine your support responses, especially during complaint resolution.

Final Thoughts

Key performance indicators for customer success are the backbone of every successful company. The simple truth of today is that companies that use KPIs effectively for measuring customer success measure performance fairly well. Most importantly, those companies plan their goals and execute them more successfully.

The top five KPI metrics for customer success are a good place to start, and with consistent use, will help take your organization to better performance levels.

Did you know? ASBN America’s Small Business Network is now available to stream in over 70 million broadcasting households for users with Roku, Firestick, AppleTV, and mobile Android [download] and Apple IOS [download] devices.

]]>
5 ways to more effectively deal with unhappy customers https://www.asbn.com/manage-your-business/customer-experience/5-ways-to-more-effectively-deal-with-unhappy-customers/ Wed, 27 Sep 2023 10:00:51 +0000 https://www.asbn.com/?p=53739 Is the customer always right? Maybe not, but in their own mind, they are. If you’ve ever had to deal with angry or unhappy customers, then you know how difficult and upsetting that encounter can be. When a customer is unhappy, it’s easy to get defensive and feel that you’re being attacked. Your first impulse may be to shout back but don’t let your emotions take over. There are better ways to handle an angry or unhappy customer. Here are five that will help you handle a difficult situation in a way that reflects favorably on you and your company or business.

1. Apologize

When a customer is unhappy, it’s usually because a customer service representative (or whoever is in charge of handling that customer’s problem) handled a situation wrong or made a mistake. But instead of apologizing for their mistakes, customer service representatives will often ignore the problem – or make an excuse. This is a huge mistake: when a customer is unhappy, an apology is a simple way to turn a potential customer into a repeat customer.

Apologize even if you don’t agree with their stance. Show empathy too.  For example: “I understand how inconvenient this is for you, and I want to resolve this issue as quickly as possible.” Sometimes that’s all a customer needs to hear to feel better about the situation. It’s an affirmation that you’re listening and that you care. Then, make sure customer service reps are trained to deal with such a situation so you don’t have a repeat performance.

2. Ask Questions and Listen to the Answers

Ask questions, be polite, and listen to the customer. Depending on the situation you can ask for their involvement in resolving this. For example: “I want to resolve this with you so that you’re happy. Can I get your permission to look at your order more closely?”

Why is this effective? The customer wants to be heard, and when you listen, it diffuses some of their anger. Plus, you’ll get a better idea of potential problems that need resolving. Your customer may have a legitimate complaint and knowing it exists gives you a chance to prevent future recurrences of the same issue. That can make your business better! So listen to what they’re saying.

"If you get your talk trigger right, it allows you to spend less on advertising and marketing because your customers will do that job for you."

3. Be Empathetic

To express empathy, think about how you would feel if the situation were reversed and what you would want someone to say to you. Compassion is key here. For example: “I am sorry that this has been a disappointing experience for you. I know it’s frustrating and I’d like to work with you to resolve it. You’ll be surprised at how far expressing empathy will take you. When you express empathy, it shows that your customer’s experience is important to you. It also makes the process of resolving the situation easier for everyone involved.

4. Just do it!

It is difficult to make a change on the spot, but if there is something you can do quickly to address the situation, then do it. For example: “I’ll try to fix this for you quickly. I apologize for any inconvenience you’ve experienced and will keep you updated.” If you can make things better fast, then the customer will be more pleased than if your company drags its feet on sorting things out.

Keep in mind that the customer is usually not angry at your company. They are angry with the person who dealt with them initially or something about the company that caused frustration. If you can resolve the issue quickly, you’ll regain their favor and they may even become a strong advocate for your brand.

5. Customer Service Is Everything to You and Your Business

Where do unhappy customers go? Almost always, the customer will move on to another store, or another product, or perhaps even another company altogether. Even worse, they may leave a negative review online or badmouth your company. Don’t let your ego cost you a customer or harm your business’s brand or reputation.

The Bottom Line

Businesses that deal with unhappy or angry customers quickly and empathically retain customers and build a reputation for offering top-notch customer service. That’s the kind of reputation you want! Customers are increasingly vocal on social media, and unhappy customers are more likely to share bad experiences than good ones. Don’t give them a reason to post something that portrays your company in a negative light.

Did you know? ASBN America’s Small Business Network is now available to stream in over 70 million broadcasting households for users with Roku, Firestick, AppleTV, and mobile Android [download] and Apple IOS [download] devices.

]]>