Developing a solid customer satisfaction strategy for any business is important and essential.
The goal of a customer satisfaction strategy is to improve customer satisfaction, increasing their loyalty to the brand. As a result, this leads to an increase in the company’s revenue and profits.
According to Bain & Company, improving customer service has a significant impact on a company’s revenue.
Research shows that companies that prioritize customer experience increase their revenue by at least a few percent to as much as several tens of percent above the market average.
Stages of building an effective customer satisfaction strategy
1. Put yourself in your customer’s shoes.
Developing an effective strategy requires a deep understanding of the target group. Without it, any strategy will not achieve its goals.
Let’s say you sell apartments. Your company is doing great and after some time you decided to conduct a survey to find out how to improve your instagram database products and services. You discovered that many of your customers in a given city are looking for finished 2-room apartments. However, instead of taking this information seriously, you ignored it and continue to build 1, 2, 3, 4 and 5-room apartments without finishing, trying to sell them in a developer’s condition. This will increase, losing some customers.
It is important to make an effort to learn the needs and understand the customers, and then take appropriate actions that meet the needs of a specific target group.
Customers have multiple points of contact with your brand, from clicking on your website to viewing a product demo, making a purchase, e.g. having a product made to suit their own needs, e.g. finishing an apartment, and throughout the warranty period, e.g. from the date of sale of the apartment for a period of 5 years.
Usually, most companies end their activities and contact with the customer at this stage.
And this is where the mistake is. It is worth maintaining and building relationships with each customer even after the warranty period.
Why?
Because it is easier to sell a second or third or sometimes a few dozen apartments to a former client than to constantly look for new clients. It is not only easier, but also many times cheaper!
Which customers are worth researching?
It is best to research all groups.
To do this, it is worth considering and dividing customers into specific target groups.
Example:
When examining the needs of a developer’s clients, it is worth taking into account basic groups such as:
- Current customers who have entered into an agreement.
- Current clients who have received the keys to the apartment.
- Current clients who have collected their finished apartments.
- Current customers whose warranty period expires in one year.
- Current customers whose home warranty expired in the last month.
- Former clients who purchased the apartment more than 5 years ago.
- Potential customers who have not signed a contract in the last 12 months.
- Potential clients who have not signed a contract in recent years.
When conducting customer research, you need to keep in mind the GDPR regulations. In the event of a lack of consent in some groups, an external and experienced Partner can help you obtain consent in accordance with the GDPR.
After the research, it is worth conducting an in-depth analysis according to various criteria, e.g. by target groups, customer contact points, departments in the company, towns, provinces. A full analysis will provide you and your company with a lot of key information about the needs and expectations of your customers. After the research, you will gain valuable information that you need to improve and enhance the quality of customer service.
In order to better understand the needs and expectations of customers, include the following techniques in your strategy:
A. Customer Journey Mapping
Mapping will help you understand your customers’ interactions and key areas of engagement with your brand.
B. Develop your buyer knowledge.
Learn about the preferences, requirements, and expectations of customers and potential customers.
C. Analyze customer feedback.
Look for common themes, interests, problems, and trends with each customer.
Analyze both positive and negative reviews. You can gather this information from: your customer service department, sales meetings, research, surveys, social media comments.
D. Review where customers interact.
Using the tools available, what sources and where customers are interacting from.
Are they having any difficulties? Why are they leaving halfway and not reaching the finalization of the deal?
2. Set clear customer satisfaction KPI goals.
Understand the needs, expectations, and interactions of your customer with your brand. Then, set customer satisfaction goals that align with your business goals.
Incorporating this step into your strategy will ensure that create your own mini program to realize your business dreams every department in your company is focused and prioritized. It’s important to know that all employees are accountable for executing your strategy. Teams should understand what their goals are. How each employee’s work in each department impacts the satisfaction of your company’s customers. Execution contributes to the customer satisfaction strategy.
When setting customer satisfaction goals, consider:
A. Set SMART goals.
Each goal should be clear and specific. SMART stands for Specific , Measurable , Attractive , Realistic , Time – bound .
B. Define key metrics that describe your business and customers.
At the end or beginning of the year, it is worth defining key KPIs such as:
- ARPU (Average Revenue Per User) – average monthly customer value
- CRR (Customer Retention Rate) – customer retention rate
- Churn (Churn rate) – customer churn rate
- CLV (Customer Lifetime Value) – long-term customer value
- LTV (Life Time Value) – customer lifetime value
- LVC (Lifetime Value Customer) – the length of a customer’s life
- RB (Repeat Business) – repeat purchase rate
- ROI (Return On Investment) – return on investment indicator
Key metrics describing your customers will help you measure and define customer satisfaction in the current study. They will also be used to monitor changes over time in future studies
What should the KPI goals be?
First, define what is important to your company. And from several key indicators, choose one that is the most important. Then determine what and how much you want to bulk lead improve? Focus on key check points.
Then check if the goals related to customer satisfaction are specific and measurable?
For example, instead of setting a goal like: improving the WSK© indicator, it is better to set a specific goal, e.g. increasing the WSK© indicator result by 5% in each quarter, compared to the previous result.
How such an increase will translate into improving the results of your company, you deny in the articles on our Blog.