Impact of the Recession on Customer Loyalty

Many business owners and managers will tell you that they are struggling to maintain market share and service levels to guarantee customer loyalty. This has been a trend for a number of years and particularly became difficult once the recent economic downturn kicked into full swing. To off-set the trend, companies are striving to provide excellent customer service, create moments of truth that make the customer feel special and encouraging customer service representatives and employees at all levels to exceed customer expectations.

A big challenge is that companies realized that in addition to losing customers, they were also losing profits as many middle class and some higher-income customers retrenched on spending. To offset their reduced disposable capital, consumers have changed their spending habits, stopped eating out and traveling as much, limited their entertainment budget, shopped less for non-essential items, and cut services that they considered a luxury (e.g. grass, pool, and pest control services) and started handling those functions personally. They also started doing more comparative shopping, spent more time bargain hunting, attended yard sales and consignment shops, clipped more coupons, and in many instances traded down to less expensive store items or those that were not in the “status symbol” or name brand categories.

The result of all these cultural and societal changes has been that now that customers are accustomed to the “new economic normal.” They realize that they can actually live well and be comfortable at a lower spending level and using lower quality products. They even realize that in many instances they actually happy with their new lifestyle and spending habits. As a result, even though the economy has started a slow upward movement, consumers are now remembering the economic pain they suffered and are stashing away as much as they can in the event the recession comes back.

What all this means for retail businesses, service providers and product manufacturers are that they must retool their marketing and production mentality. They are reducing on-hand inventories, minimizing staff hiring and using part-time employees or outsourcing services and re-examining the way they deliver customer service in a changing world. In particular, they are changing the manner in which they show added value to their customers in an effort to gain and retain new ones.

The changing business environment has resulted in a winning proposition for many consumers who now feel that they are in a power position related to making purchases. This is especially true in instances of major buying decisions (e.g. cars, houses, property, recreational vehicles, and other higher-end items). Many realtors and dealers have experienced a large inventory surplus due to a slowdown in purchases and tightened lending policies from financial institutions. This has created a buyers market.

By doing adequate research and coming to the sales environment with knowledge of manufacturing costs, competitive pricing, and product and service details, the consumer is now often in a position to negotiate strongly and get pricing that is not only fair but also better than they could have gotten in the past. Retailers in nearly every type of product line and business are willing to negotiate and offer discounted prices when pressured by the customer to do so. They do this because they realize that their competitors will discount if they do not and the customer is likely to walk away, if not satisfied with an offer they receive. In addition, with a global economy and access to products from around the world only a mouse click away, companies realize that they must deal or die.

From a customer service perspective, it is imperative that managers develop a customer-centric mindset and that customer service representatives and everyone else in the organization adopt a can-do/must-do attitude when it comes to communicating effectively and working with customers. They must provide the best customer service possible in any instance where there is a of customer-provider interaction. Only through such initiatives will organizations be able to show customers that they offer the best value, care about their wants, needs, and expectations, and are willing to put forth the effort to help achieve customer and brand loyalty.

About Robert W. Lucas

Bob Lucas has been a trainer, presenter, customer service expert, and adult educator for over four decades. He has written hundreds of articles on training, writing, self-publishing, and workplace learning skills and issues. He is also an award-winning author who has written thirty-seven books on topics such as, writing, relationships, customer service, brain-based learning, and creative training strategies, interpersonal communication, diversity, and supervisory skills. Additionally, he has contributed articles, chapters, and activities to eighteen compilation books. Bob retired from the U.S. Marine Corps in 1991 after twenty-two years of active and reserve service.

Make Money Writing Books: Proven Profit Making Strategies for Authors by Robert W. Lucas at Amazon.com.

The key to successfully making money as an author and/or self-publisher is to brand yourself and your company and to make yourself and your book(s) a household name. Part of this is face-to-face interaction with people at trade shows, library events, book readings, book store signings, blogging or guest blogging on a topic related to their book(s). Another strategy involves writing articles and other materials that show up online and are found when people search for a given topic related to a topic about which the author has written.

If you need help building an author platform, branding yourself and your book(s) or generating recognition for what you do, Make Money Writing Books will help. Bob’s popular book addresses a multitude of ideas and strategies that you can use to help sell more books and create residual and passive income streams. The tips outlined in the book are focused to help authors but apply to virtually any professional trying to increase personal and product recognition and visibility.

Effective Listening Tips for Customer Service Representatives

by Robert W. Lucas

Effective Listening Tips for Customer Service Representatives

Active listening is a skill that has to be learned and developed over time. As a customer service representative, you must continually practice your listening skills in order to deliver good customer service. Many people believe they are doing so, when in fact, they are only hearing the words (which is a passive physiological process in the body). To deliver excellent customer service, you must actively listen to get what customers are actually saying verbally and nonverbally.

Here are four tips for actively listening to your customers that can enhance the quality of service that you deliver.

Stop doing other tasks and focus on what your customers are saying in order to increase your listening efficiency. Ask clarifying questions where appropriate to ensure that you ensure that you received the message they intended.
Take time to slow down and actively listen to customers in order to make them feel important and allow you to better identify and meet their needs. This is important because many people spend time thinking about what they will say next rather than listening to what is being said. If you do this, your customer-provider relationship could suffer.
Do your best to listen well so that you can get at the customer’s meaning or need. Don’t rush a customer who seems to be processing information and forming opinions or making a decision. This is especially important after you have presented product information and have asked for a buying decision. Answer questions, provide additional information requested but don’t push. Doing so could frustrate, anger, and ultimately alienate the customer. You could end up with a complaint or lost customer.
In dealings with customers, try to avoid subjective opinions or judgments. If you have a preconceived idea about customers, their concerns or questions, the environment, or anything related to the customers, you could mishandle the situation. Listen openly and avoid making assumptions. Allow customers to describe their needs, wants, or concerns in their own words, and then analyze them fairly before taking appropriate action.

For additional suggestions and strategies for delivering exceptions customer service, get a copy of the book Customer Service: Skills for Success.

About Robert C. Lucas

Make Money Writing Books: Proven Profit Making Strategies for Authors by Robert W. Lucas at Amazon.com.

Three Tips for Developing Customer and Brand Loyalty

by Robert W. Lucas

Three Tips for Developing Customer and Brand Loyalty

Companies and customer service representatives are always looking for ways to develop a service culture that can increase customer and brand loyalty in today’s global competitive business environment. By exhibiting basic customer service skills and delivering excellent customer service with each customer-provider encounter, the chances that a customer will return and stay loyal are increased significantly.

Here are three simple strategies that can contribute to higher customer and brand loyalty in your organization.

Always act in the best interest of your customers. Listen to them, ask questions, anticipate their needs, deliver what you promise and exhibit high levels of professionalism in everything that you do whether your customers are present or not.
Take the time to personalize your customer interactions and to make each customer feel special. Use a customer’s name often during an interaction, listen, smile, ask questions to show interest and strive to project a positive image. This can all lead to enhanced trust and helps ensure that the customer returns.
Treat all customers as if they are crucial to the organization—they are! Do whatever is possible and reasonable to maintain a strong customer-provider relationship and keep the customer returning and recommending that others should do likewise. Whether someone is a new or existing customer should make no difference.

For additional ideas on developing customer and brand loyalty and on how to deliver effective customer service to your customers, get a copy of Customer Service: Skills for Success and Please Every Customer: Delivering Stellar Customer Service Across Cultures by Robert W. Lucas.

About Robert C. Lucas

Make Money Writing Books: Proven Profit Making Strategies for Authors by Robert W. Lucas at Amazon.com.

Strengthening Customer Communication

by Robert W. Lucas

Strengthening Customer Communication

Customers who feel that they have an active role and control of a service-provider interaction often feel more important and valued. Improved interpersonal communication can lead to higher levels of customer satisfaction and retention and reduced stress for you and your co-workers.

Take advantage of the following strategies to build stronger relationships with your internal and external customers.

Gather Information

Ask for customer input whenever possible. By knowing more about their needs, wants and expectations, you will be better able to provide services and products that satisfy them. Use strategies you will find in this chapter to gather valuable information from people who you encounter on a daily basis.

Be Consistent

People tend to like what is familiar. If customers come to know that they can depend on you and your organization to regularly provide timely, factual information, they will likely be more loyal. Provide information and updates to customers on a regular basis, not just when it is convenient for you. This is especially true when you are working on a problem or service breakdown. Remember that they do now know what you know. For example, if you are gathering information or need more time than expected, come back to the customer with periodic updates to give them a status check.

Demonstrate Openness

Customers often want to see that service providers understand them on a personal level. The worst thing you can do as a service provider is to hide behind a policy or deflect responsibility when dealing with a customer issue or question. Think of how you likely react when a service provider says something like, “I can’t do that because our policy says…” You probably feel the hairs rise on the back of your neck and become agitated. Your customers are no different. When interacting with them, take the time to put yourself in their place before saying something or taking an action that might create an adversarial situation.

Be Personable

Service providers who tend to be “all business” or robotic in their service delivery often fail to get high marks from customers. Even if you are knowledgeable, efficient and follow all the rules in delivering service, you could end up with a customer who is dissatisfied if you do not demonstrate some degree of humanness. This means connecting on a personal level and showing compassion and concern for your customers and their emotional needs.

By communicating effectively and regularly with your customers, you show that you are more than a customer service representative; you are a person. For example, if someone tells you during an interaction that they are celebrating a special event take the time to ask explore the topic briefly or relate a personal example. If it’s their child’s birthday, you might wish the child an enthusiastic “Happy Birthday” and ask him or her how old they are or what they hope to get for their birthday. Depending on the type of business you are in, you might even offer a small present (e.g. a free dessert, a piece of candy, a toy, coupon for a discount on their next visit, or whatever might be appropriate). At the least, upon concluding the transaction, wish them well or congratulate them one more time.

Creating a Service Culture

by Robert W. Lucas

Creating a Service Culture

Most workers do not realize that everyone in the organization, from the CEO down, is in the service business and is responsible for helping create and maintain the service culture. This means that whether you world with external customers (people who contact you and pay for your products and services) or internal customers (people who work in other areas of the organization, and to whom you provide or get information and services to allow you to do your job) you are a service representative to others.

It does not matter whether your work for a large multi-national organization or a small business, the principle is the same; nor, does it matter if your title is Customer Service Representative or CEO. You are the “face” of the organization when interacting with others. By the way, this applies when you are standing in line in your uniform or with a company nametag on at a fast-food restaurant at lunchtime and someone asks a question or complains about a situation with your company. What you do and say next reflects on you as a person and as a representative of your organization. Depending on how you handle such situations, you can project a positive professional image or can come across as someone, or an organization, with whom the person does not want to patronize. If you forget this point, you potentially lose customers and revenue for your organization. That means fewer dollars for raises, benefits, training and upgraded equipment or supplies to do your job.

Exactly what is a service culture in an organization? The answer is that it is different for each organization. No two organizations operate in the same manner, have the same focus, or provide management that accomplishes the same results. Among other things, culture includes the values, beliefs, norms, rituals, and practices of a group or organization. Any policy, procedure, action, or inaction on the part of your organization contributes to the service culture. Other elements may be specific to your organization or industry.

As an employee, you may communicate the culture through your appearance, your interaction with customers, and your knowledge, skill, and attitude. The latter element is crucial in your success and that of your organization.

As a service provider, if you take a job just to have a paycheck without buying into the service culture and supporting the goals of the organization, both you and the organization will lose. Each person in an organization should strive to help build strong customer-provider relationships

For you to be successful in the service industry (or any other for that matter) you must take ownership of your roles and responsibilities and show commitment to doing the best you can every day that you go to work. Even further, you must project a positive attitude when you are not at work as well. All the time, your goal should not be to deliver the best customer service possible.

A big challenge to any organizational culture comes in the form of social media. Many people have become a victim to careless comments that they placed about their organization, supervisors or peers on Facebook, LinkedIn or other social media site. Think about the number of times you have heard friends “bad mouth” their boss, organization, products, and services. Did their attitude toward their job inspire you to want to patronize their workplace or apply for a job there? If you were to take the same approach in sharing information about your organization or the people in it, there can be a negative effect on you and the organization. What you do or say around others in any environment sends a powerful message about you, your level of professionalism and your organization. If you cannot support your employer; quit and find a job where you can. To do less is being unfair to yourself and your organization.

The bottom line is that contributing to the service culture of your organization is the responsibility and everyone else who works there.

For more ideas on how to provide excellent customer service and help create a positive customer service culture, get a copy of Customer Service Skills for Success.

Avoiding Customer Service Breakdowns

by Robert W. Lucas

Avoiding Customer Service Breakdowns

There are a number of things that you might do as a customer service representative that can irritate customers or cause them to form a negative opinion of your or your organization. Remember that your goal should be to project a professional presence, help create a positive service culture and provide the best possible customer service.

The following is a partial listing of actions that you should avoid at all costs when customers are present or on the telephone.

-Do not forget that your co-workers and people from other departments in your organization are your internal customers. Treat them with the same courtesy, respect, and attention that you would an external customer.

-Talking to a co-worker about a non-work related topic;

-Engaging in lengthy personal conversations with a customer;

-Bringing up sensitive topics for discussion with a customer (e.g. politics, religion, abortion, civil or gun rights, or any other controversial subject);

-Performing administrative tasks (e.g. filing or working on the computer);

-Waiting until you run out of currency, coins or forms before getting more;

-Not having your computer booted up and software activated and ready to access before the start of business;

-Interrupting service for one customer to deal with another’s question;

-Discussing personal problems or complaining about ANYTHING to another customer or co-worker;

-Conveying a sense that you are overworked or do not have time to deal with the customer’s needs;

-Talking about or disrespecting a competitor.

For more information about providing positive customer service, how to avoid service breakdowns and strategies for service recovery when things do go wrong, get a copy of Customer Service Skills for Success.

Customer Service Strategies That Aid Customer Satisfaction and Retention

by Robert W. Lucas

Customer Service Strategies That Aid Customer Satisfaction and Retention

It seems like many organizations are spending a lot of time, effort and money try to impress or “wow” customers, rather than focusing on solid strategies for simply giving them what they want and expect. Unfortunately, a lot of people I know tell me that they are not impressed with all the razzle-dazzle of the latest technology and scripted responses used by customer service representatives. Instead, they just want service providers who are knowledgeable, empowered to act, can communicate effectively and make appropriate decisions in a service situation, especially if service has already broken down.

The following strategies can help accomplish customer satisfaction and potentially lead to more loyal customers.

Create an effective communication environment. One trend that seems to be gaining ground with a lot of companies is that they are actively trying to improve the systems that collect information from customers and communicate with them. Not only must service representatives communicate; they must also actively listen to what the customer is saying and address concerns, needs, and expectations promptly and professionally. Part of this communication is the integration of online and mobile technology processes that give customers a variety of options to access information and service twenty-four hours a day, all year long (24/7/365). All of this is in response to the recognition that there has to be a better response to life balance issues of customers who are demanding that someone be “on-call” to address their needs when they want service.

Provide enhanced service training. Concerned organizations are also working harder to train their employees to really listen to customers and effectively analyze what they are saying. Whether customers communicate in person, over the telephone or via one of the numerous technology channels, successful organizations are striving to better understand and address customer needs in a timely and professional manner.

Using technology that makes sense. In past decades, the use of computers has been integrated into nearly every aspect of business and service delivery. More recently, mobile technology and person data delivery systems have created a more tech-savvy customer base which assumes that service mechanisms, to which they have access and use daily, will be integrated into the service solution equation. Intuitive approaches, apps, and other technology-based mechanisms are being designed and used by many of the top-rated organizations in the 21st Century.

The key to effectively creating and supporting a truly service-oriented customer-centric environment in today’s world is to step back and analyze what the actual needs of customers are and then set out to find ways to address them. This gets back to the first point…actively listening to your customers.

For additional information, ideas, strategies on how to build stronger relationships with customers in order to help achieve customer satisfaction and build customer relationships, get a copy of Customer Service Skills for Success.

Customer Service Skills for Success

by Robert W. Lucas

Customer Service Skills for Success – Tips for Delivering Excellent Customer Service

In one of my books, Customer Service: Skills for Success, I feature how-to strategies on topics for customer service representatives that can assist in moving from good customer service to excellent customer service delivery. By applying strategies found in the text, customer service professionals can enhance their knowledge and skills and make them more successful in delivering service to all types of customers.

In the chapters of Customer Service: Skills for Success I cover the concepts and skills needed for success in the service profession. Strategies provided to readers include listening techniques, verbal and nonverbal communication, using technology to deliver service, addressing the needs of internal and external customers in any business environment, how to build customer loyalty and what to do when service breaks down and they need to recover. I also share experience and tips on how to use positive global service strategies for dealing with diverse customers.

Here are three tips for ensuring better service delivery to your customers:

If you seek trust; communicate it through your words and nonverbal cues.
If your supervisor empowers you to make decisions, that means he/she trusts your ability to handle various issues. Do not take this trust lightly. Before taking action, stop, weigh alternatives, and then resolve the situation to the best of your ability in order to send a message of competency and professionalism.
Unhappy people are still either customers or potential internal or external customers when they contact you at work. Your goal should be to try to serve them effectively them so that they return for future products or services. If you fail at this goal, you and your organization or department will potentially suffer financial and prestige loss.

I am always interested in hearing what is working and what is not in organizations related to customer service. If you have ideas, suggestions, tips or cutting edge practices in the professional that you would like to share with others, please comment.

For ideas and information on how to improve your own customer service skills, get a copy of Customer Service Skills for Success by Robert W. Lucas.