There is a stat we use frequently on this blog, so regular readers have probably heard it, but it is one of the most important statistics I’ve ever run across. It’s the “Career Home Runs” of statistics: as soon as you see it, you know the power of the number. You ready?
To me, that’s astonishing, and telling. Nearly every company is checking themselves in the mirror and saying “looking good” while their tie is askew and their shirt has several buttons in the wrong holes and they somehow have no less than three different types of mustard in their hair.
As it turns out, it barely matters how you perceive yourself. You might think you are providing the best customer care out there, but still have high rates of customer dissatisfaction. That can ruin your reputation, crater your profits, and destroy your business.
These days, there’s no way to escape the ramifications of a bad reputation. The only way is to avoid getting one in the first place. And that means employing great customer care, either in-house or with a respected and trusted third-party partner. It increase revenue by improving customer retention. It’s how customer care is crucial to your bottom line.
How Reputation and Customer Dissatisfaction Feed Each Other
Pictured: customer dissatisfaction and social media
Imagine that you are going to a restaurant for the first time. You look at reviews on Yelp, and see a bunch of people complaining about service. The food is fine, the prices are ok, but the service is lousy.
Now, there are several possible reasons for that. Maybe there was a bad manager. Maybe there was just, like, one bad server and a disproportionate amount of people who write Yelp reviews had the displeasure of having him. Maybe there actually was a problem in the business culture that led to a lack of motivation, or a problem with process that gummed up the works.
You don’t know. It could be nothing, or it could be something. But when you go, you’ll be more keyed up to notice bad service. If it takes an extra minute for your drinks to arrive, you’ll mentally start chalking that up to the problem with the restaurant, even if you wouldn’t at another place. Even the most innocent problems loom monstrously when you have a preconceived notion.
And these days, everyone can have a preconceived notion about your business just from scrolling through Twitter. People are far more likely to broadcast bad news, whether through social media or just yakking with friends, than they are with good news. In fact, stories of bad customer experiences reach twice as many people as stories about positive customer experiences.
That is combined with another psychological effect, which is that bad experiences linger much longer and have far more power than positive ones. The author Martin Amis described what that was like about getting positive vs. negative reviews.
This curse, the way it works is that any praise you get is instantly assimilated, and it just brings you up to where you should have been already. But any criticism just jangles around in your head and makes you stay up at night.
It’s the same with customer experience. (Coincidentally, that passage is from Amis’s memoir titled Experience.) Once one of your customers has a bad experience with you, it almost never goes away. They are already judging you, and on-edge to be negative. It jangles in their head, and every interaction is already weighted toward their dissatisfaction.
Studies have shown that it takes 12 positive customer experiences to make up for one negative one.
Here’s the thing, though: you probably don’t have that kind of time.
Keep Your Customers Through Great Care
Customers will leave. They have far more choices now than they ever did before. There are very, very few instances where customers are tied to a local store or dependent on one particular business. Unless you are Amazon or Coke, you have to make sure your customers never experience dissatisfaction (and even Coke knows what happens when they mess with their formula).
That means a great product, yes, but it also means impeccable customer service. You have to create loyal customers. After all, it costs 6-7 times more to earn a new customer than to keep a loyal one. Every new customer you have to find cuts into your expenses, while your income is reduced by losing an existing one.
That’s why we place such an emphasis on great customer care. Simply put, you can’t afford dissatisfaction turning into abandonment. Every customer you lose costs you.
Great customer care means decreasing customer dissatisfaction and improving long-term loyalty. That means training is key. It means making sure you have a partner with incredible employee retention rates. It means working with someone who understands your business.
You may think you deliver superior customer service. But only 8% of companies who believe they do actually do. That’s not zero percent though. You can be there. You just have to have the dedication to do so, and that starts with understanding the vital importance of customer care to your revenue cycle. When you understand that, a comprehensive plan for service can begin.
RDI-Connect is your full-service call center and customer care partner. We combine cutting-edge technology with superior hiring and training procedures to give your organization the support it needs. Your success is ours. To learn more about how we can partner with you, please connect with us today.
RDI Corporation was founded in 1978 and is headquartered in Blue Ash, Ohio. We provide precise business solutions through a fully integrated outsourcing model and our clients ranged from mid-sized corporations to distinguished Fortune 500 companies.