Why relationships are the key to small-business success.
Australia is home to the entrepreneur; 97.3 per cent of all businesses here (around 2.5 million) are small businesses, defined as having fewer than 20 employees.
Building strong relationships is crucial for the success of any small business (or big business, for that matter). These relationships span customers, employees, suppliers, partners, and the larger community and, when invested in, they can create opportunity and the holy grail of brand loyalty.
When you have a limited number of employees, who may not be communications experts, finding the time and the know-how to analyse your customer data and create rewards programs that drive sales might be the least of your concerns. Still, when done right, it will be a powerful tool for growth.
“Rewards programs often generate positive word-of-mouth, attracting new customers.”
Having worked for over a decade with businesses of all shapes and sizes, we can say with authority there are important aspects of customer relationships a business needs to get right.
Customer service
Good customer service is a main ingredient of any successful business. It is the art of ensuring customers have a positive and satisfying experience when interacting with a company or its products and services. Good customer service goes beyond just meeting the basic needs of customers; it aims to create long-lasting relationships. Here are some key elements that contribute to good customer service.
- Prompt responsiveness: A fundamental aspect of good customer service is promptly responding to customer enquiries and concerns. Whether it’s answering phone calls or emails, or messages on social media, customers appreciate timely responses. Quick response times show that a business values its customers’ time and concerns.
- Effective communication: Clear and effective communication is essential in providing good customer service. Employees should be able to convey information and instructions clearly, listen actively to customer feedback, and empathise with their concerns. Effective communication helps resolve issues efficiently and build trust.
- Product knowledge: Well-informed staff can provide customers with accurate information about products and services. When employees understand the features, benefits and limitations of what they offer, they can guide customers effectively and make suitable recommendations.
- Problem resolution: Mistakes and issues are bound to happen in any business. However, how a company handles these problems defines its customer service quality. Good customer service involves acknowledging mistakes, taking responsibility and working to resolve issues promptly and to the customer’s satisfaction.
- Empathy and patience: Customers may come with various emotions, including frustration or disappointment. Good customer service requires employees to be empathetic, patient and understanding. Showing empathy helps customers feel valued and heard.
- Going the extra mile: Sometimes, exceeding customer expectations can leave a lasting positive impression. Going the extra mile can involve offering unexpected benefits, providing additional assistance, or simply showing genuine kindness. A loyalty offer, such as a free cup of coffee or a future discount, goes a long way to leaving that good feeling.
Good customer service is not just a department or a policy; it’s a mindset and a commitment to putting the customer at the forefront of everything a business does. It’s about genuinely caring and investing in positive brand experiences. Long-term business success is more accessible when existing customers are retained, and new ones are attracted through positive word-of-mouth and reputation.
A personal approach
Relationships involve people; the more personalised we can interact, the tighter the bond formed.
When we talk about personalisation as a customer service strategy, it involves tailoring interactions and support to meet the unique needs and preferences of individual customers. This approach means making interactions more relevant and engaging. Here are some key aspects of personalisation within customer service:
- Customised communication: Personalisation begins with addressing customers by name and using their preferred communication channels. It also involves recognising their past interactions and purchase history, allowing customer service representatives to offer more relevant assistance; for example, remembering that Steve likes a skinny cap and proactively saying his order will make him feel valued. When sending out offers, having a personalised ‘Dear’ field is a nice touch that is easily achieved when you have point-of-sale software.
- Predictive support: Through data analysis and artificial intelligence, companies can predict customer needs and issues before they arise. For example, a customer may receive proactive notifications about upcoming service renewals or potential product upgrades based on their usage patterns. This was crucial when we were designing (POS software) Shift8 and we’ve been able to build in elements of this with our loyalty software addzme.
- Tailored recommendations: Just as in product personalisation, customer service can provide personalised recommendations. By analysing customer behaviour and preferences, companies can suggest relevant solutions, products or services that align with the customer’s interests.
- Dynamic content: Personalised content, such as emails and support documentation, can be dynamically generated based on the customer’s profile and history. This ensures that the information provided is accurate and highly relevant to the individual’s situation.
- Adaptive service paths: In customer support, personalisation can involve adaptive service paths. Instead of following rigid scripts, agents can adapt their responses and solutions based on each customer’s unique circumstances and preferences, resulting in more effective issue resolution. Apps and chatbots are a great example of how you can make an adaptive service.
- Feedback integration: Collecting and incorporating customer feedback is essential for personalisation. Customer service systems can continually use feedback to refine and improve the support experience. Moreover, companies can acknowledge and address specific customer feedback, demonstrating their commitment to improvement. Having the ability to do this isn’t a barrier when you have the right systems in place.
Personalisation in customer service is a powerful tool for creating meaningful and lasting relationships with customers. By leveraging data, technology and a customer-centric mindset, businesses can deliver tailored experiences that meet individual needs and exceed expectations, ultimately leading to increased customer satisfaction and loyalty. This is one of the key drivers that led me to develop addzme.
Loyalty and rewards programs
Loyalty and rewards programs incentivise repeat business by offering customers rewards, discounts and exclusive perks based on their continued patronage. Small businesses can tailor these programs to suit their needs and budgets, creating a loyal customer base.
An additional benefit of building a digital-based rewards and loyalty initiative is that businesses can collect valuable data on customer preferences and behaviours, helping them refine marketing strategies.
Rewards programs often generate positive word-of-mouth, attracting new customers. While building customer loyalty, these programs contribute to increased sales and long-term success for small businesses in a competitive market.
McCrindle Research has found that Generation Z, our current strongest group of consumers, relates to brands that are both purpose-driven and allow them financial benefit. The research states, “This generation wants to live a life of financial freedom and independence, but they are also deeply purpose-driven. They value authenticity and living a life where their values and actions align.”
Implementing loyalty programs to reward repeat customers will keep them coming back. With no signs of the cost-of-living crisis easing anytime soon, that free coffee, 20 per cent off voucher, or ‘the next haircut is on us’ could be the difference between a customer returning to your store or trying a competitor.
This article first appeared in issue 44 of the Inside Small Business quarterly magazine
