How to Gain Customer Loyalty and Satisfaction
Customer Loyalty and Satisfaction: What is Customer Satisfaction and Why Is It Important? The Benefits of Having Good Customer Service. The Costs of Poor Customer Service.
Today, we can say that customer satisfaction and customer loyalty are a new form of marketing. People can access a lot of information about your company and competitors in a few clicks. In other words, customers are more conscious than ever. At this point, customer satisfaction is of great importance. So people have a greater attachment to companies that they feel taken care of.
Research shows that acquiring a new customer costs 6-7 times more than retaining existing customers. In this context, in order to retain your existing customers, you should keep their hearts pleasant and make them loyal to your brand.
1. What is Customer Satisfaction and Why Is It Important?
“A loyal customer is worth 10 times more than the average customer who only shoots one time.”
Is it necessary to have good customer service?
The answer to this question is simple: Yes, it's worth. However, many entrepreneurs have difficulty understanding this fact.
To answer this question in more detail, we must also consider the following questions.
⇒ What are the benefits of providing good customer service?
⇒ How much does it cost to provide bad customer service?
The Benefits of Having Good Customer Service
Many studies have found that today's customers place greater emphasis on customer service.
For example, in a study conducted by American Express in 2011, 3 out of 5 customers consist of people ready to switch from one brand they love to another just because their customer service is better.
Likewise, in the RightNow Customer Experience survey, we see that 9 out of 10 people are willing to pay more to get better customer service. 80% of the respondents think that small companies are better at customer service than large companies.
This means: The success of small companies depends largely on customer satisfaction.
The Costs of Poor Customer Service
"Bad customer service is heard twice as fast as good customer service."
Can you lose potential customers due to poor customer service?
Available data answer this question "Yes." replies in the form.
According to surveys, 91% of people who experience bad customer service the first time with a company reveal that they never shop from that company again. What's more, two-thirds of people try not to shop from stores that they realize have bad customer service.
When customer service over the phone is found to be poor, 70% of people do not shop from that company again.
Even worse: You only realize that you lose customers due to poor customer service after the business is too late.
Again, according to similar studies, one person complains about bad customer service, while the remaining 26 people remain silent and do not trust that company again. In other words, there are more customers who do not speak up than those who only speak up.
What Does This Mean For Your Company?
If you have read our article so far, you have realized how important customer service is.
In addition, nowadays the control over customers' opinions is lost. Ten years ago, when a person was dissatisfied with customer service, he was only telling his immediate surroundings. Today, mistakes made are revealed more quickly thanks to Facebook, Twitter,and dictionary sites.
In other words, the essence of the word is that if you want to be respected and loved by the customer mass as a brand and have a quality image, you should give priority to customer satisfaction.
2. How to Create a Brand People Love?
Have you ever felt your brand's message being ignored by people? This situation can be even more upsetting, especially when you offer products or services that add value to people's lives.
So how can you build brand loyalty if no one notices you?
With the emergence of social media, the idea that customers should be in constant interaction with customers, otherwise customers might run away, does not reflect the truth when looking at the available data. So how should we approach customers who want a limited interaction?
Shared Values Are Important for Brand Loyalty
Many marketing campaigns are conducted on a sales basis. So what would it look like if the main target was to gain customers rather than selling products?
According to a study published in the Harvard Business Review, it is almost impossible to have such a thing as brand loyalty in the US, UK and Australia unless the following element is present. This element is:
"People feel loyal to a certain brand because of common values 64%."
So common values are the backbone of brand loyalty.
In the survey conducted by the research company called CeB, it was revealed that “people are not loyal to the brands but to the view of life represented by that brand”.
“It is an undeniable fact that there is emotional loyalty to brands. This loyalty occurs when people unite with brands on a common value denominator. "
When it comes to small companies, one-on-one communication with customers is vital for brand loyalty.
Because most of the customers don't mind being in a close relationship with your brand. At this point, it is more important to establish a close relationship with people who find the things you represent meaningful than the frequency of the relationship. Customers who share the same values as you demand that you apply these values to your products and services.
For example; The famous shoe company TOMS presents itself as a gift to the needy people around the world after selling a pair of shoes due to its One for One campaign. At this point, a company should also be able to directly put its values into practice.
Apart from making money, having certain sacred goals is one of the best ways to establish customer loyalty. In fact, many studies show that this is the ideal way to gain customer loyalty.
Another way to gain customer loyalty is to create enemies. There are other brands that the most popular brands around the world are definitely enemies.
Should Your Brand Be an Enemy?
Being a representative of a certain value is often not enough to gain customer loyalty. You also have to create enemies for yourself.
At first glance, this may seem a little silly. However, the validity of this issue has been scientifically established.
For example, consider Apple's advertisement in 1984. Apple is putting a lot of talk about Windows and people using Windows in this ad. However, Apple presents itself as an operating system for young and creative people. We can say that the foundations of the PC vs Mac competition that continues even today are based on this advertisement.
A recent neurological study reveals that a certain point in the brains of Apple fans is activated when thinking about Apple products. The more interesting part is this: This region of the brain that becomes active is the same region in the brain that becomes active when thinking about religious issues in normal people. In other words, the understanding of "Us and Others" underlies the loyalty of Apple customers.
Henri Tajfel, who works in the field of social psychology, found the following results in his research on social categories and in-group behavior:
When people who did not know each other before are randomly divided into groups without any criteria, people discriminate against people in the other group and support people in their group.
Putting Theory into Practice
The study we mentioned above shows us that even imaginary classifications put people in the "us and others" psychology.
Another work of Tajfel on this subject is on social identities. Social identity theory is based on how people maximize discrimination while identifying with a group.
"Groups give people identity (Who are we?) And self-confidence (feeling good about ourselves)."
Tajfel's social categorization study shows that if there is a certain enemy, people in a group are more closely connected to each other. That's why Man. United fans get closer when it comes to Galatasaray.
At this point, we should state the following. When we say creating enemies, we are not talking about your grudge against your competitors in the market. The main thing to emphasize here is to develop strategies that will put your brand in front of other brands and attract customers to your own brand.
3. How to Gain Customer Loyalty with a Low Budget?
The biggest advantage of small companies over large companies is that they can provide personal customer service.
However, small companies are often unaware of the fact that good customer service can also be provided with a low budget. That's why they try to provide costly customer service, which puts them in financial bottleneck.
Studies show that good customer service is thought through. Psychologist Norbert Schwarz suggests that even a small contribution of 10 cents can change people's mood and cause them to start sympathizing with other people.
In other words, providing great customer service has nothing to do with budget and expenditure, but with intention and action. In short, spending a lot of money is not a guarantee of good customer service.
Does Being Frugal Bring Customers?
Many brands do well for their customers, but the Sweetgreen example is quite interesting.
“The company hires passionate people, even with no work experience, to strengthen its brand image. And the company is running a campaign called "Random Goodness." At first glance, you might think that this situation doesn't make much sense. However, psychological research shows that this is the case.
The Sweetgreen team randomly distributes gift cards to people on the street. For example, when it rains, they distribute raincoats to passers-by. They put gift cards on the wipers of the cars.
It may be considered a futile endeavor because such random favors do not have a specific goal, but the good activities this company does affect people psychologically and encourage people to shop from this company.
So much so that due to such events, the company grew 300% and increased its annual turnover from 10 million to 15 million dollars.
When it comes to effective customer service, small changes can have a big impact.
Making your customers feel they are making the “right choice” is the beginning of a long-term relationship.
In this respect, we have a lot to learn from waiters who deal directly with customers. Research shows that asking other questions after the customer orders a product positively affects the customer's service perception and increases the amount of the tip. In other words, if people feel that a special service is offered to them, they leave more tips and see that place as a more special place.
Peppermint Candy's Persuasion Power
What do you think is the place of offering peppermint candy to the customer among the actions the waiters make to get a tip?
Research shows that offering mint sugar to customers at the end of the meal increases the tip rate by 23%.
According to an experiment published in the Journal of Applied Social Psychology, a group of customers was served peppermint candy, while some (control group) were not.
The result is surprising:
In the first group, the waiter brought the peppermint candy with the bill and said nothing else. There was an increase of 3% in the tip compared to the group where mint sugar was not served here.
In the second group, the waitress offered the customers two mint candies by hand and said, "Does anyone want another mint candy?" he asked. Compared to the control group, there was an increase of 14% in the tip.
Customers in the third group were given a few peppermint candies. And then the waitress came back to the table and said, "Does anyone want mint candy other than extra?" he asked. Here, there was a 23% increase in the tip rate compared to the control group.
At first glance, one might think that the second and third groups gave a similar reaction. The reason for the increase in these two groups compared to the first group is that a few mint was given by the waiter at the beginning and the waiter verbally stated that they were served mint sugar.