3 Customer Experience Tips for Marketers to Reduce Churn

Here’s the backdrop for our customer experience story. It takes most organizations months to onboard new employees to get them to full productivity. In fact, according to the Society for Human Resources Management, an effective onboarding program can take 12 months.

Here’s the backdrop for our customer experience story. It takes most organizations months to onboard new employees to get them to full productivity. In fact, according to the Society for Human Resources Management, an effective onboarding program can take 12 months. (Opens as a PDF)

Onboarding, defined on Wikipedia as “organizational socialization,” is the process by which employees gain the knowledge and skills to succeed at their jobs, and assimilate into the culture of the organization, becoming valued and contributing members of the “tribe.”

Without carefully planned and executed employee onboarding programs, employee attrition goes up, and so does corporate waste, as it costs about nine months of an employees’ salary to terminate and start over again.

This same principle applies to customer loyalty and the very high cost of losing even just one customer. Yet it’s hard to find “onboarding” programs for customers that are as robust as those for employees. Even with the cost of losing a customer being much higher than the loss of a middle management employee. When you lose a customer, you lose not just the cost of acquiring that customer, you lose the next transaction you were counting on, and you lose their entire lifetime value, which can be pretty substantial in the B2B world.

This is where a carefully concerted and executed customer experience becomes mission-critical to any businesses’ success. Interestingly enough, Qualtrics-owned Temkin Group, which conducts regular customer experience rating studies, shows that customers’ satisfaction with brand experiences is dropping. Those rating customers’ experiences as “good” or “excellent” has dropped to 38 percent, or 7 percent lower in 2018 than in 2017.

customer experience graph
Credit: Temkin Group

David Morris, CMO of Proformex, marketing advisor to Resilience Capital, and respected authority on SaaS marketing, has founded and led many businesses to exceptional growth by focusing on customer experience above all else. His mantra for success is really one simple step that if neglected could put any business out of business:

ONCE YOU GET A CUSTOMER, DO EVERYTHING IN YOUR POWER TO FURTHER ENGAGE THEM.

This simple mandate seems like one of those no-brainers for most of you reading this article; yet, if you really did an audit of your business, you’d likely find, like most businesses today, that many of your team members are so focused on getting more and more customers to meet those sales quotas that they are not all that engaged with whom they just sold.

Per Morris, “We spend thousands of dollars and huge amounts of time marketing to customers, and in some cases, a year or more to convert a lead to a customer. And then we lose a customer in a matter of months. When this happens, you spend a lot more money getting customers than you get back in revenue, and that is not a sustainable way to operate a business.”

To stop the craziness and profit bleeding from the above cycle, Morris suggests some simple tactics to re-engage customers through experiences that create the kind of partnerships and added values that take competitors and price out of the equation.

Make Sure Your Customers Are Actually Using Your Product

Nothing kills customer satisfaction ratings like customers who have not gotten around to using the products you sell them. Again, this sounds obvious. But it’s not. Professionals often sign up for SaaS licenses, marketing tools, and systems that they don’t get around to using or put off when training becomes more timely than planned. And quite often, they never get around to telling you. So when it’s time to renew, they go elsewhere.

Utilize the Tool of Face Time

And Morris doesn’t mean online. Get out to your customers office, take them to lunch, talk about the weather, sport teams, your kids. Just get out there and establish some positive energy in real time. In a world where time is one of the most valuable assets we have, giving time to someone is often more valuable than anything tangible you can offer. Customer satisfaction goes up when customers feel they are appreciated, valued and recognized for their achievements, roles and needs. Spending “real time” in the “real” vs. digital world is one of the strongest methods for building long-term customer relations, as Morris teaches his staff and uses himself.

Establish Reciprocal Transparency

Ask customers the tough questions, suggests Morris. And his definition of tough does not include, “What is your budget,” or “How quickly can you buy?” Tough to him includes, “How are we doing? What can we do better? How do we compare to others you’ve used? And how do we need to change to earn your loyalty?” Its tough when someone points out your failures and shortcomings, but until you face them and buck up to change them, you cannot succeed in securing customer loyalty, and frankly many other areas of business and life, in general.

Conclusion

To succeed in business today, you must have a plan for a customer journey that addresses every step of the way, every touchpoint, and is aligned with KPIs across your business. Creating customer journeys and experiences that result in customer satisfaction is really a simple process, as Morris points out. The key is commitment. Get commitment to a consistent process, experience and outcome for every customer, every day, vertically and horizontally within your organization. Start small, grow big and enjoy long-lasting relationships that generate sustainable revenue streams and strong ROMIs.

Redefining the Art of Minding Your Ps and Qs

You know hospitality when you feel it, or as officially defined by dictionary.com it’s “the quality or disposition of receiving and treating guests and strangers in a warm, friendly, generous way.” Hospitality is actually more valuable than ever in our rushed, device-first and attention-deficit overloaded world. And yet, I find it missing in many brand experiences.

Multi-restauranteur Danny Meyer wrote a book called “Setting the Table: The Transforming Power of Hospitality in Business” that caught my attention during the holiday season. Both in his book and on his website, Meyer shares his main business philosophy that has guided all 11 of his New York-based restaurants:

This is the age of the Hospitality EconomyTM. Superior products and excellent service are no longer enough to distinguish your business. How you make your customers feel is what sets your business apart—and that’s what hospitality is all about. Organizations that embrace a hospitality strategy:
1. Earn a reputation as a best place to work
2. Win customer loyalty
3. Generate persistent top line growth

Meyer believes wholeheartedly that “Hospitality is a sustainable competitive advantage. While others try to copy your products, no one can replicate the hospitality experience you create for your stakeholders.”

I couldn’t agree more. You know hospitality when you feel it, or as officially defined by dictionary.com it’s “the quality or disposition of receiving and treating guests and strangers in a warm, friendly, generous way.” Hospitality is actually more valuable than ever in our rushed, device-first and attention-deficit overloaded world. And yet, I find it missing in many brand experiences.

Perhaps, you, too, experienced this lack of hospitality over the past holiday shopping season: Brand ambassadors who often didn’t make meaningful eye contact, brusquely said “not a problem” when there was indeed a problem you needed for them to solve, and a goodbye after a transaction without a “thank you.” Why do businesses spend lots of capital on ad campaigns and new product introductions only to slip up on these basics—the real, face-to-face human interaction?

When I do experience genuine hospitality from companies, the repercussions are long and lasting and bring a smile to my face. This is likely to happen when I fly on Southwest Airlines or grab a quick lunch at Chipotle or Chick-fil-A. These brand ambassadors exude enthusiasm, seem to truly love what they are doing and make a conscious connection to engage with their customers, to treat them as friends and in doing so, validate the reasons the customers choose to spend their time and money with these companies.

Earlier this month I checked into The Ritz-Carlton for an annual girlfriend getaway. The brand lived up to its reputation for luxurious elegance, but what impressed me most was their lived value of “being ladies and gentlemen who serve ladies and gentlemen.”

My conversations with the various Ritz-Carlton team members I encountered—whether with parking attendants, concierges, front desk clerks, wait staff or spa personnel—were gratifying. They were genuinely concerned about all aspects of my stay and welcomed me like a good friend you were looking forward to getting to know better on this visit.

I like thinking about the verbs that drive hospitality—welcome and empathize—and just how they can be leveraged to a brand’s competitive advantage. I spoke with The Ritz-Carlton’s Human Resources Manager Greg Croff about this exact topic.

“Here at The Ritz-Carlton, we are all about memory-making. We want all our interactions to be positively memorable experiences. And, it all starts with our hiring process. We look for people who care about building relationships, who are naturally empathetic and easy to talk with, who make eye contact and who truly believe it is ‘their pleasure’ to take care of our guests. We welcome our new hires in a way we want them to welcome our guests. Constant hospitality is our DNA. We reinforce this each and every day with our Daily Lineup where at the start of each shift the team gathers for 15 minutes to focus on one aspect of our Gold Standard. We share WOW! stories of how team members reinforce our service mystique. We learn from each of our ladies and gentlemen about raising the bar and creating memories.”

Just how well does your brand mind its Ps and Qs? “Please,” “thank you,” “my pleasure” … simple words and phrases that may or may not bookend a customer’s experience with your brand. Why not conduct a hospitality audit with your leadership and see if this is one area of competitive advantage your brand can improve upon this year?