Table of Contents
The five ways to build better customer relationships include:
Understand Customer Psychology
Focus On High-Quality Customer Service
Ask For Feedback
One of the most important aspects of running your own business, especially if you provide a service for people, rather than an actual product, is managing and maintaining a good relationship with your customers.
Why Is It Important To Build Customer Relationships?
Building customer relationships is like building a friendship – it doesn’t happen overnight, but it grows over the little connections.
They require time and effort, and without nurturing your relationships, they can fall apart in a blink of an eye.
Communities can have a tangible impact on key business performance indicators. Businesses gain a significant rise in operational efficiency, revenue generation, and customer satisfaction.
Hence, customer communities can be identified as one of the primary techniques to build customer relationships.
Good customer relationships often lead to customers staying with your company for a long time, making more purchases, and spending more money as time goes on.
Imagine a few businesses grow over time, while others have huge swings and eventually descend. What is the difference?
The polarity lies in how they focus on building customer relationships to the next scale. Solid customer relationships are much like any relationship.
You need to invest your time to build and nurture them over a period.
Seventy-nine percent of customers say that they want brands to show that they understand and care about them before buying anything.
Customer Relationship Management (CRM) Software
Some companies use CRM software to help manage their relationships over time.
Using (CRM) software to help manage data and track communications can allow you to provide more engaged service to customers.
They can even serve up some specific and helpful content in that customer’s activity.
Tools like HubSpot’s ServiceHub are examples of customer service tools that might help you provide a better experience to your existing customers.
Using software to manage administrative tasks allows your team to focus more on authentically connecting with customers.
While these can be helpful, especially in larger businesses with formal customer relationship programs, they aren’t necessary to deliver exceptional customer experiences.
Three Benefits To Building Strong Customer Relationships
Good customer relationships are a critical part of having a successful business.
They’re important because they set the tone for how existing and future customers think about a business and its products.
With so many options at their fingertips, customers are consistently evaluating their relationships with the services they use regularly.
If you’re not taking care of them, they’re likely taking off.
So let’s look at the two major benefits of building strong customer relationships.
Reduce Churn Through Customer Satisfaction
We get it; obtaining a new customer is exciting. However, customer acquisition is wasteful and expensive if you don’t have a retention strategy.
According to Hubspot, over the last six years, acquiring a new customer has increased by 60%; concrete evidence it costs way less to keep a customer than it does to acquire a new one.
Increase Customer Lifetime Value (CLV)
Your customer lifetime value (CLV) refers to how much revenue you can expect from a customer over the lifetime of your business relationship.
Customer satisfaction is one of the primary drivers behind improving your CLV. A happy customer makes progressively bigger (and, on average) more purchases.
How To Build Strong Customer Relationships
There are many ways to build long-term customer relationships, including more transparency to build trust, customizing customer experiences, sending personalized offers and support, collaborative selling, etc.
Understand Customer Psychology
Businesses can strengthen their customer relationships by taking the time to understand what is driving behavior.
This is usually in the form of a problem causing the customer pain. When you can address that issue emotionally, you become the trusted guide in their story.
Many businesses forget about a customer once they buy, but that part is important to move forward in a relationship with this customer.
Having a customer journey map that details each step of the sales funnel and addresses a customer’s thoughts at every stage can help you empathize with them.
A great way to understand your customers is to leverage your company’s social media accounts to interact with them.
Solving complaints or queries on this platform shows existing and prospective customers your excellent attitude to customer satisfaction.
Now it is humanly not possible to keep all the customers happy. Whenever there is a customer argument, redress the issue promptly as possible.
Nike is excellent at this and even has a dedicated customer service Twitter account @teamnike, ready to pounce whenever a customer mentions Nike’s main Twitter handle.
They’re flooded with requests all day long but remain patient and firmly on the customer’s side.
Invest in your valuable customers – Allocate your business growth towards new products and solutions that serve your best customers. Customers are the lifeblood of your business.
They are the source of current profits and the foundation of future growth.
You can take many tactics and steps to improve customer relationships and truly offer better, more personalized service.
There are many reasons to reach out to a customer, and digitally is the fastest way to do it.
To make sure that digital experience will help build a strong customer relationship, you need to personalize your approach.
Make it easier to have relationships with customers by using the same types of technology and communication channels.
Research how your customers tend to shop, then make your brand accessible in those spaces.
You can create company profiles on the social media sites your target audience uses the most to make it easy for customers to find you and interact.
The best way to strengthen customer relationships is to provide immense value right from the start. First impressions are critical, particularly in branding and marketing.
By giving your customers a ton of initial value, they will have a great first impression of your brand.
A popular saying among consumers is they want to be treated like people, not numbers.
Many in the business world are taking this sentiment to heart as they seek to build and improve customer relationships. This has meant an increasing focus on personalization.
Focus On High-Quality Customer Service
Blow away their customer service expectations.
When signing for your product, your customers expect a certain level of customer service, find out what that level includes and exceed it.
Go above and beyond to make your customer feel valued.
How you treat your employees shows them how they’re supposed to treat your customers.
Suppose you’re always trying to cut costs.
In that case, your employees may assume they shouldn’t be offering discounts or adding value in other ways, which can go a long way toward exceeding customer expectations.
Many salespeople still believe their job is to pitch the product or service.
While you want them to continue meeting their sales quotas, statistics show sales professionals often pitch customers long before they’re ready to make a purchase anything.
The key to building strong customer relationships, no matter the size of your business, is to engage your customers.
Good customer relationships are based on customer experience—what it’s like for people to do business with you.
According to BDC Client Experience Manager Chris Palin, that experience is all about how you exceed customers’ expectations.
It should be remembered that customer relations do not end once the sale is made; they start from there.
Trust is at the foundation of any long-term relationship with a customer.
The more confident your clients feel in your expertise and skill and what you do, the more they’ll trust you to provide them with the right solutions.
Customer relations need to be nurtured constantly if you want them to grow like all other relations.
In other words, you need to keep in touch with your customers, whether it’s by sending them holiday cards, birthday tweets, newsletters with updates about your products and services, or the occasional email.
We’ve already established that existing customers are more likely to spend more, but you should also know that returning customers spend 67% more money than new ones.
Even if you were to make a sizable investment into a loyalty program that rewards regular customers, your revenue would still improve significantly.
This thus saves the marketer from heavy investments in marketing campaigns to acquire new customers.
Companies can generate more leads and convert them with the positive backing of their existing customer.
Emphasize offerings like a 24/7 customer service line, a responsive app, or loyalty rewards to attract and maintain loyal customers.
Find a way to reward your most loyal customers by showing them that they are top-of-mind.
Ask For Feedback
An even better way to develop your customer relations would be to ask continuously for customer feedback, use it to improve an existing product or service, or ultimately come up with a better one.
According to Dean Preston, who is in charge of customer relationship management at EssayOnTime, customers prefer making their purchases with brands and companies that take the time to acknowledge their followers and respond to their feedback.
Consider posting a survey on your website or sending email requests for feedback or product reviews. These methods will help you learn more about what your customers value.
Negative word of mouth can tarnish your reputation in no time, considering how word of mouth, especially negative, spreads on social media.
By addressing customer complaints, you cannot only prevent this, but you can also turn a previously negative customer experience into a positive one.
To make sure that each complaint is handled in the best way possible, the way you and your staff handle disputes should be a part of your internal policy.
You should also provide appropriate training for each employee regarding this issue.
There are numerous channels through which you can reach your target audience, and since 71% of customers never turn off their mobile devices, getting them to leave feedback shouldn’t be too difficult.
Every email you send out is a chance to build a connection with a potential customer.
Yours should provide value and be personalized to the preferences of the human being on the other end and where they are in their customer journey.
You’re trying to be a part of someone’s life for the long-haul, right? No one wants to hear from someone they haven’t heard from in a while who is just asking for money.
Likewise, you don’t only want to reach out to your customers when you have something to sell.
Keep Detailed Files
Collaborative selling is gaining rapid acceptance in sales circles. Under this paradigm, you invite the customer to participate in the sales process.
By allowing them to work hand in hand with your salespeople to craft custom solutions, you can inspire trust and ensure your customers feel more satisfied with your service.
Let Your Brand Lead The Way
Your branding and marketing make a promise about customer experience and your organization as a whole—and it’s essential to deliver on that.
If you claim you’re always there for customers, but people can’t get beyond your voicemail when they call you, then you’ve failed to meet your promise
Customer Relations vs. Customer Service
They may sound like the same thing, but customer relations refers to the ongoing relationship you build with your customers.
Customer service is mainly in response to specific and individual customer complaints and/or issues that need to be addressed immediately.
Pick Kennected, Not Jenga
Building customer relationship is like playing the ultimate game of Jenga. It’s tricky, and you have to be careful, but you will win with the right strategy.
Companies that perceive the importance of building customer relationships develop an emotional connection and retain with them for a long time.
We’re likely one of the few SaaS businesses that value lasting relationships over revenue. We believe in it so much, that we included it in our market.
But here’s something worth remembering; with our product Cloud Kennect, your customers get a personalized experience on LinkedIn.
We want to leave a good impression, a lasting impression, for our new prospects and those who chose to believe in us out of all the competition.
Every customer feels connected with our company on a personal level because we offer great service. It’s a simple matter of putting you, the customer, first.
Visit Kennected today!