Foundations of Customer Trust
October 6, 2022
You may find business communication stressful lately. The costs of goods are rising, materials continue to be scarce and hiring is a challenge.
Many business owners have had to share hard news with their customers about necessary price increases (or higher project quotes) as well as delays in service and product delivery. Will you face an angry barrage of complaints directed at you and your team or experience customer attrition? Hopefully not if TRUST has been earned and reinforced in your marketing. The goodwill garnered with trusted relationships is like an insurance policy.
Customer trust has three primary benefits: customer loyalty, customer referrals, and customer lifetime value. All are critical in this environment when customers are rationalizing their spending choices even more than usual. A quick summary:
- Customer loyalty is when customers make repeat purchases from your business over time. They’re also more likely to buy from you instead of a competitor and recommend your products or services to others. Loyal customers are more likely to forgive honest mistakes and delays, as well as understand price increases.
- Referral business can be a considerable source of growth for your company, especially when existing customer spending is slower. When customers trust you, they’re more likely to tell their friends and family about you.
- Customer lifetime value is the total amount of revenue that a customer will generate for your business over the course of their relationship with you. Trustworthy companies have clients who stick around longer and spend more money with your business.
FIVE STRATEGIES TO BUILD (AND KEEP) CUSTOMER TRUST TO STRENGTHEN YOUR BUSINESS:
- Be honest and transparent in all your dealings. Share data if you can. Admit and address errors when they occur.
- Deliver on your promises. If you say you’re going to do something, follow through. Keep customers apprised of changes or delays. You can do this 1:1 or through marketing channels.
- Be responsive and proactive in meeting their needs and concerns; express sympathy versus defensiveness. Reinforce active listening skills across your customer-facing staff. Small "above and beyond" surprises yield tremendous goodwill. Email newsletters, postcards and social media content can reinforce that you're on their side.
- Demonstrate that you care about the long-term relationship, not just making a one-time sale. Loyalty reward programs (that don't have to be expensive) emphasize your values.
- Get to know customers and client teams over time and remember their preferences with regard to your products, services and favored channels of communication. Thoughtfully use any personal data you may have learned over time (e.g., birthdays or volunteer work) to make interactions with your business better or special.
Uncoordinated and fragmented efforts are inefficient and ineffective
Black Friday, Small Business Saturday and Cyber Monday. No longer just a retailer's game, the weekend after Thanksgiving is a time of heightened consumer demand, in stores and online.
It's no secret that marketing is an essential part of any successful business strategy. However, with the lazy days of summer, many businesses tend to slow down or, worse yet, stop marketing altogether.
A missing puzzle piece is annoying. And while you may think, "Well, it is only one piece," it could wreck the whole picture.
You may be worried about a lot these days. How is your business going to get through this? How can you keep your employees employed? How are you going to pay your bills? These are all normal concerns to have but there is some good news that will help keep money coming in now and the future. Read on for a few ideas. If you are a business that can offer gift cards, this is one thing you should act on now. When your customer purchases a gift card, that is immediate cash going into your business. Your customers and the community WANT to support you at this time and this is a great way to do that. Maybe offer them at a discount too. If you run a business that offers a service you may be closed due to Coronavirus. Set up a video system. This has become extremely popular in the past several weeks. It’s a great way to stay in touch with your clients but from a distance. If you are a gym or yoga studio, offer online classes. If you are a restaurant, offer a cooking class. If you are a professional organizer you too can do this virtually. If your business is centered around learning and education, offer classes online. Use your imagination. Another way to keep in touch with your customers and to remain top of mind is to reward them with a special offer when they refer your business. Just because you may not be able to get out and perform the service now, you will be able to when things settle down and become more normal. It will be great to have some new customers in the pipeline and your existing customers will really appreciate the special offer. Have you ever thought about partnering with another small business in your area? Now may be the perfect time to explore this idea. There are many benefits to a partnership. Probably the number one benefit is it allows you the opportunity to grow your customer base. But a partnership could also mean your business will have access to new products, reach a new market, block a competitor (through an exclusive contract), or increase customer loyalty. A partnership is also a great way to strengthen a weak aspect of your business. To get started simply map out a plan. Determine prospective partners and then pitch your idea to the prospects you have identified. Don’t be afraid. You will get some no’s but you may also get a yes. You won’t know until you try. This is a time to think outside of the box and do some calculated risk-taking. You know this is a time when many if not all of your competitors are taking their foot off the marketing pedal. If you are able to, this is a time where YOU can blow right past them. Of course, not all small businesses will be able to do this, but if you do have the resources, invest in your marketing. This is how you can gain a competitive advantage over the next few months and when this crisis is all over you will be in a better position. Good luck!
The holiday season is upon us – and it’s the perfect time to lean in to your social media accounts. Does that sound counterintuitive? Quite the opposite! Yes, you are extremely busy, and that’s a great thing, but ignoring your social media during the holiday season will be a detriment. Follow these helpful tips to maximize your social media exposure and increase sales and followers this holiday season. Showcase your company’s personality with some holiday cheer. This is a great way for your business and employees to interact with your followers and customers. Post pictures or videos of your offices decorated for the holidays, holiday parties or team events. Your followers and customers love to see the human side of your business. Use social media for teasing new products. This is a terrific way to get your customers engaged. Undoubtedly you are getting shipments multiple times a week – take the time to snap a photo, do a quick write-up about the product and post. This is the time of year that your customers are researching products for gift-giving, and they usually have a game plan for shopping. If they see your products before others, you have a much better chance of winning the sale! Another way to increase those holiday sales is through special discounts, shipping offers or flash sales. Shopping has changed, and more and more people are doing theirs through social media. Reward your followers with a special deal, and watch the sales come in. Of course, it’s not all about sales. This is a wonderful time to donate to a charity you support, volunteer or give back to your community. During this season, giving is a little bit more special. Engaging with your followers on causes you support will benefit those charities. People will be more inclined to donate, giving you the chance to say thank you to your followers and making the holiday season a success for everyone. These are just a few helpful tips to get you going. Use your imagination! The opportunities are endless! Whatever you choose, don't overlook the power of social media this holiday season.