Keeping Customers Satisfied
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Source: Flasher, W. (n.d.). Keeping Customers Satisfied. Retrieved January
12, 2005, from the Ohio State University Extension web site: http://ohioline.osu.edu/cd-fact/1301.html
Customers are the primary reason for
being in business. They are the lifeline of any business,
and it is important to keep patrons by avoiding or minimizing
customer dissatisfaction.
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How much is a good customer worth? If good customers
are worth having, they are worth your effort to keep them coming
back.
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A certain amount of customer turnover
is inevitable. Some business people think they can afford
to lose some customers because they can replace them
with new ones. However, attracting and retaining new
customers is expensive. Marketing data indicate that
it costs five times as much to get a new customer as
it does to keep an existing one.
Do you keep customer turnover to a minimum?
Are you sure you suffer only natural and unavoidable
losses? Use the self-evaluation
form on the next page to give yourself an indication of how
well you are doing with your business. |
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Impressions Last a Long Time
What makes an impression on a potential or
current customer? Nearly everything you do makes an impression.
Your overall goal should always be to service your customers
smoothly and objectively.
Building a successful, positive image with your
customers enhances credibility. Living up to that image creates
valuable word-of-mouth publicity.
Are the physical facilities of your business
clean and safe? Organize equipment and supplies neatly. When
expanding or remodeling a business, make it as attractive in
appearance as possible. Anything less gives a shoddy, unprofessional
image.
Work with your employees on customer relations
whether they are dealing with people in person, over the telephone
or by mail. Be sure that all employees know their responsibilities.
Always have an adequate inventory on hand. Running
out of supplies or not having advertised inventory results
in negative publicity.
Develop a procedure for handling customer complaints.
Your responsiveness has the potential to build excellent customer
relations. Consider customer complaints to be a form of constructive
criticism, which you can use to make improvements.
Basic Steps for Effective Complaint
Management
Listen to your customers and acknowledge their
complaints. Customers who register complaints expect action.
Complaining involves some inconvenience and possibly expense.
Develop empathy or show concern for the customer.
Personalize your response. Ask questions to identify and analyze
the problem. Obtain the customer's ideas concerning possible
alternative solutions.
Resolve the complaint according to policy. Decide
in a fair manner what you are responsible for and initiate
some positive action to remedy the situation. Follow through
with the proposed resolution. When it cannot be immediately
resolved, keep the customer informed of progress and notify
him or her promptly when a settlement has been reached. Keep
a notebook of promised action.
Keep a record of complaints and proposed action
for resolution. For most small firms, this can be accomplished
simply by requiring salespeople to write on an index card each
complaint handled that day. These cards should be given to
the manager daily. Complaints should be studied, followed up
and tabulated periodically to determine trends.
 What is it Worth to Keep Customers
Satisfied?
According to consumer surveys, a person who
has had an unpleasant experience with a business will tell
9 or 10 other people. About 13 percent will tell more than
20 other people. This negative word-of-mouth publicity can
be very harmful to a business. More consumers are basing their
purchasing decisions on the advice of people they know. An
unhappy customer cannot be kept quiet. However, you can regain
customer support by solving complaints quickly. Such customers
not only may come back but also will spread positive talk on
to others.
Customer Relations Self Evaluation1
Check the "yes" and "no" blanks
that apply and total the number of "yes" responses
at the bottom.
1. Do you realize that your established customers, even the
small ones, are your best accounts because they are easier
to sell and require fewer "special deals"? Yes____
No____
2. Do you communicate to all your customers that they are important
to you? Yes____ No ____
3. Do you encourage return business? Yes____ No____
4. Do you tailor your service to the customer's particular
needs? Yes____ No____
5. Do your customers usually call on you when they have a tough
problem to solve? Yes____ No____
6. Do you provide any unique or special services for your customer
that they would find difficult to duplicate? Yes____ No____
7. Are your customers genuinely convinced you have their interest
and welfare at heart? Yes____ No____
8. Do you ever take a customer for granted? Yes____ No____
9. Do you go out of your way to learn as much about each customer
as practical? Yes____ No____
10. Do you follow up to make sure your customers' orders are
filled accurately and delivered on time? Yes____ No____
11. If a customer registers a complaint, do you handle it promptly?
Yes____ No____
12. Do you always follow up on problems and complaints to make
sure their resolution is satisfactory to the customer? Yes____
No____
Total "Yes" Answers ______
To determine your rating, add together all of
the "yes" answers. Compare your rating to the scale
below. If your score is:
- 10 to 12: Your customers are probably
loyal. You rate better than average.
- 8 to 9: Mediocre to fair.
- Below 8: You may be
needlessly losing established customers to competitors
and it's time to reassess the service you've
been giving them.
1 Zetocha, Dale. Retaining Customers
by Handling Complaints, Cooperative Extension Service, North
Dakota State University.
October EC 813, p-3.
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