The Crucial Relationship Between Repeat, Returning Customers and Happy, Retained Employees

If you're wondering what you could do to get a competitive edge in sales, a good answer can be found in customer loyalty. If what you are selling is of high quality, then you are likely to receive repeat customers and increase your profitability.

But what else could you be doing to make for happy customers?

The answer could be to keep your workforce happy.

The importance of loyalty

Frederick Reichheld's groundbreaking book, "The Loyalty Effect," posits that loyal repeat customers are an absolute necessity when looking to expand your business. 

Quite simply, one-time customers do not bring as much revenue as a loyal customer base, and they also cost the business more in marketing efforts in order to make that first sale. Customer acquisition costs are high—so it is more effective to maintain a base of returning consumers.

An increase in retained customers can result in a leap in profits, whether you are targeting high-frequency or high-volume repeat customers.

So, what turns a first-time buyer into a repeat one?

We know there is a correlation between customer experience and happy staff from extensive research on the topic. Harvard Business Review found that businesses that emphasize the employee experience achieve revenue growth that is 1.8 times faster than companies that don't.

The meaningful relationships built through exceptional service from your team are important for customer satisfaction, making all the difference when it comes to building brand loyalty.

Happy employees are the number one way to guarantee a positive experience in customer service interactions. Investing in the welfare and happiness of the employee could, therefore, increase the chances of a returning, loyal consumer.

Common customer retention challenges

Building long-term relationships with clients can be tricky, particularly in an increasingly digitized world. While Omni-marketing strategies can work to ensure your marketing communicates with a consistent voice, it is ultimately the people on your team who will be managing customer expectations and delivering that excellent service needed to keep your customers happy.

There is a balance to be struck with communication strategies. After all, no one wants to feel bombarded, but equally, ease of access and frequent reminders of your product or service are important.

With the average young adult in customer service staying in their jobs for only one year, it can be a struggle to build an experienced staff who are capable both of dealing with customer queries and communicating effectively to market your business. It is key then to work with your team to create a synergy between customer and employee.

Customer retention strategies

There are many different things your business can do to make for exceptional customer experiences and, therefore, consumer loyalty:

1. Map your customer journey

One good way to ensure exceptional customer service is to consider at which points during the sales journey your customer will require the services of your staff. This could be via social media interactions or via in-person discussions in a brick-and-mortar setting.

2. Respond to customer feedback

All customer feedback can be made useful! Positive reviews can be used to deliver valuable insights about the product but also about your staff, proffering positive reinforcement that will make your staff proud.

Negative reviews can instead be considered constructive criticism. In replying to these and settling any issues, you can often resolve the reviews, reminding reviewers that even online, these are human interactions.

3. Aim for personalized services

If you are looking to build long-lasting relationships with customers that will turn them into loyal patrons, you want to customize their experience. By providing a human touch that takes into account your customers' individual preferences, your business will foster strong relationships with your team and your customers, which will build customer trust.

4. Effective loyalty programs

We all know the dreaded Customer Churn Rate threatens us over time. By embarking on effective email campaigns, creating a rewards program, or offering fresh, special offers, you can increase the customer lifecycle by making it clear your service will go the extra mile to deliver value.

If your team is on board with the messaging behind your marketing campaigns, they will be able not only to support your business growth at work but potentially make their own word-of-mouth recommendations, making people around them feel they are getting ahead by learning of exclusive offers first.

5. Staff training

Whether through official workshops for soft skills or just on-the-job training, it is a good idea to empower your staff when it comes to customer service interactions.

If your staff feel supported and skilled enough to engage in all aspects of the working day, they are less likely to suffer burnout, which, therefore, reduces staff turnover and increases the experience levels across your team.

6. Motivate your team

If you are looking to build a reputation for truly excellent customer service, you will want your team to feel incentivized to deliver their best service to current clients. Sales contests within a limited time frame are one superb way of building motivation, delivering a dopamine boost to your team that will increase employee satisfaction levels.

Give your business the Edge

Edge's platform is here to help you implement a seamless experience for both employees and customers. Our automated system alerts your team to positive Google reviews and can allow for further interaction with the customer.

Another of our innovative tools is our real-time sales contest function, which uses the data from the reviews to create an online leaderboard. You can set the period of time for the competition to run and any potential rewards to galvanize your team into action. Your team can then track their progress via an easily downloadable app on their smartphones.

If you are a business owner looking for a way to boost your team's focus on customer relationships, you need to look no further than Edge. Contact us today to book a demo.