5 Reasons to Respond to Your Customers

Customers, Customers and more Customers.  We all want to earn the trust, satisfaction and loyalty of our customers because all of these result in predictable revenue for our business.  There are many ways to attract and retain customers including offering a great product at a fantastic price or a well organized display in the right place at the right time, but sometimes it isn't just about the product.  Sometimes, it's about the interaction between you and your customer.

Making sure that you have a clear plan and well thought out process for every type of interaction will help you build your customer base and allow you to thrive in no time.  Here are the top 5 reasons to respond to your customers when the opportunity presents itself:

Responding to a Purchase

A purchase is the perfect time and may be the first time (hopefully of many more times in the future) to show the customer much you appreciate them.  If the interaction is in person, make it a point to acknowledge the support.  Think about surprising the customer with something extra like candy for their child, a free gift with their purchase, etc.  This leaves a lasting memory that will be shared with friends and family.  In the case of shipping a purchase, think of similar surprises like great packaging, promotional information or possible products or services that compliment their purchase.  Maybe a simple thank-you note can work too...Expressing Gratitude in Writing Builds Business Networks by Terence P Ward is a useful article on the elements of a thank-you note.  Whatever it may be, it is critical that each interaction be given the best effort possible.  Remember, every interaction done right can bring several more interactions in the future through referrals.

Responding to Feedback

Feedback is a great mechanism that allows a business to constantly evolve and optimize.  Many large companies have extensive feedback systems in place while small businesses usually operate in a more informal manner.  The key is to formalize this informal system for small businesses.  Instead of spending time and resources to try and understand how to improve your business, one of the easiest ways is to just ask your customers (or visitors) for their feedback and you will most likely get the information you need.  Just asking for feedback is a big step as many of us forget to ask for this input, and the information is very useful.  In order to ask for feedback, it is best to be organized and it can be done very quickly.  Start by asking about one aspect of your business each week...anything from product quality and customer service to pricing and product variety.  Make this an ongoing process and you will be amazed at what you will learn from your customers.  

With each piece of feedback, you have the responsibility to respond as well...it can be a thank-you note, a discount to your store or even free stuff - we all love free stuff!  Responding to each piece of feedback will retain current customers and increase your ability to attract new customers.  If you wants some extra tips, Andy Sernovitz of Andy's Answers offers some great ways to manage customer feedback in his post, how to respond to customer feedback.

Responding to Referrals

Responding to referrals is probably the best (and the cheapest) customer acquisition method.  For every sale that you get, you should think of all the ways your customers can refer their friends and family to come to you.  Make it a win-win-win for everyone!  A win for the customer who referred someone, a win for the new customer and of course, a win for you on the new sale. 

In order for this to work, you have to make your referral program and incentives visible, talk about them, mention them in your communications!  If you come across someone who asks "why should I refer you?" just ask them "why not?" And then gather their feedback to improve in order to get the referral in the future.  Here are two useful articles that will provide you with several ways to get more referrals:  Customer referrals: Viral marketing goes old school by Wayne Hurlbert and How to get referrals by Seth Godin.

Responding to Returns

Although returning a customer purchase is one of the most difficult times to be positive, it is should always be done with a smile and a feeling that this is an opportunity for the future.  Every time that I've returned something I've purchased, my experience usually dictates if and when I will come back to do business with them again.  The important thing is to make the process for the customer returning the item as seamless and easy as possible.  A wonderful article to help you handle your customer returns a little better is Tips for Handling Store Returns, Tie Your Return Policy to Customer Service, not Disservice by Susan Ward.  Consider this interaction a critical step to ensure that this customer comes back and brings many more with them as well as opportunity to learn to improve your business, product or service.

Responding to Complaints

What did I do wrong?  Remember, things happen and everyone makes mistakes.  The key is how to handle the situation when you do make a mistake.  There have been enough books written on this topic to fill a library, but we'll try to keep it short and simple for you today.  Treat each customer complaint with compassion and respond to them in such a way that shows you care.  Remember, if the customer didn't complain to you, you may not have been aware there was an issue.  The customer complained which shows they care about you and/or your business so treat them with extra kindness and they will become your best advertisement!  If you feel like digging a little deeper into the library, here are three resources that will help you:  The Customer Complaint Iceberg  by Paul Quinn,  Responding to Customer Complaints by Intuit and How to Respond to a Customer Complaint by Rebecca Mazin.

I hope these reasons to respond to your customers will help you in your business and please share your feedback, complaints, referrals and compliments as we always love to hear them!