The Customer is Always Right - Good Customer Service is Good Business

Customers are the lifeblood of your business. How customers feel about your product or service matters most. You want to hear what they have to say about you, your staff, your product, or your service. Give your customers a chance to complain. Instead of just asking if everything is alright, ask them if there is anything you can do to make things better for them. Then, let them tell you. Don’t try to defend yourself. The customer is king and the customer is always right. It is their experience that matters most. Let the customer tell you about their experience so that you can learn what it takes to improve service and win a lifelong customer.

91% of unhappy customers will not willingly do business with your organization again. Source: Lee Resource Inc.

A dissatisfied consumer will tell between 9 and 15 people about their experience. About 13% of dissatisfied customers tell more than 20 people. Source: White House Office of Consumer Affairs, Washington, DC

Happy customers who get their issue resolved tell about 4 to 6 people about their experience. Source: White House Office of Consumer Affairs, Washington, DC

It is better to give the customer a refund than to let the customer walk away unhappy. Studies show that unhappy customers tell more people about their experience than happy customers. When a customer is unhappy with a product or service, they are quick to call all of their family and friends to complain, and if they are really unhappy, they go to consumer related websites, such as Yelp, Hotels.com or TripAdvisor to warn potential customers about a potentially bad product or service. Unhappy people see their actions as a “public service”, so the more people they forewarn, the better they feel about themselves.

A happy customer will also tell other people, however a happy customer typically does not go out of their way to spread the good word about your awesome customer service. If someone asks, then, of course, the happy customer is willing to share their experience, but they generally are not going out of their way to comment.

For every customer complaint, there are 26 other customers who have remained silent. Source: Lee Resource Inc

• Respond to their phone calls promptly. Don’t keep your customers waiting for you to pick up the phone. Answer the phone by the second ring and answer the phone with a smile to let your customer know how much you appreciate their call.
• Respond to their e-mails promptly. We live in a world where time is valuable. Don’t keep your customer waiting to hear from you.
• Make a diligent effort to go over and above the call of duty. You want the customer to be thoroughly satisfied. The happier they are, the more likely they will be to shop with you again.

It takes 12 positive service experiences to make up for one negative experience. Source: “Understanding Customers” by Ruby Newell-Legner

• Let customers know that you appreciate their business. Don’t just take customers’ money and say thank you. Show them that you are grateful that they chose to do business with you instead of the competition. Follow up with a phone call, a thank you card, an email – something that goes beyond the end of the transaction.

If you are in business to make money, you need the customer more than the customer needs you. If the customer is not happy, you lose the opportunity to earn money.

You are in business to sell your product or service. Your main focus should be on satisfying the customers' needs. With that being the case, the customer is always right.

Zappos is an extremely successful business with excellent customer service. The primary goal of Zappos employees is to satisfy the customers. Watch this 1:11 video to learn some of the secrets Zappos uses to gain loyal customers.

For more information about customer service, visit the InsightSquared Blog and read their blog showing 100 Customer Service Statistics.

MarleneB, a real estate broker, has been a licensed REALTOR® since 1989. While still licensed, MarleneB is retired from active sales. Having been CEO of a real estate brokerage and VP of a publishing corporation, MarleneB shares knowledge and experience for business owners.