The benefit of having loyal customers is that you can make mistakes on various levels and still hold on to those customers.  A company with no sense of customer satisfaction, no commitment to learning and understanding how to keep customers, or how to improve or maintain the customer experience will eventually encounter a rude awakening.  Do not take your customers for granted and think they will always come back.  A big reason why customers come back is that a better opportunity has not presented itself, or maybe they think nothing else is better, or maybe they think they will experience the same hassle somewhere else so why bother leaving?  It is nice to think that your repeat customers repeat their business with you because they are completely satisfied, trust your company, love the customer service, enjoy the experience, and look forward to visiting your company in the future.  Does the DMV get repeat happy customers? Repeat yes, but as far as being happy, probably not.  It is pretty safe to say that the DMV is fully aware that people do not like going there, but yet they continue to have a stream of new and repeat business.  This is due to the perception that nothing else is better and they will assume the same treatment at any other DMV.  What if another, newly upgraded, DMV was built in your town.  A DMV that had tripled the staff who were friendly, customer focused, and dedicated to your satisfaction and went the extra mile to make you happy.  A place where they guaranteed your wait time was no more than 10 minutes and they gave away coffee, pastries, and free pens.  Also, this new DMV advertised very well and reached out to the community informing everyone of the upgrade in service they would receive by switching to their business.  Which one would you go to, the old DMV or the new DMV?  That is an obvious choice but it proves my point.  Your company is not safe and you should not think that just because you have repeat customers that they are loyal or they are actually satisfied with your company.  The trouble with most companies is they will never know the difference because no customer measurement is taken.  A lot of companies think and see only through their own eyes and never appreciate what the customer thinks, feels, or wants.  Even though things may seem to be going well, that sometimes is not always the case.

I have been going to a business to get my haircut for about 8 years.  Over that time I have built relationships with the hairdressers who were very personable, but their customer service was lacking.  On many occasions I had to wait long periods of time.  Some other notable experiences include: leaving with an incomplete haircut, a hairdresser cutting my hair wrong, and also dealing with their ignorance in customer service.  Eight years is a long time, and most can attest that such a long relationship is hard to break.  With my growing knowledge of customer service, I finally came to the realization that I am customer, I have options, and if I do not like the current situation I do not have to stay.  I am not friends with the people at this business, I do not receive discounts when I have a poor experience, nor do I receive any incentive for being their customer.  Also, I find this company stealing from me most of the time (see the article, “Are You Stealing from Your Customers?”).  I know there are other hairdressers in my town so why not venture out and explore my options?

As my example shows, no relationship in business is safe. Loyalty by familiarity will only take a company/customer relationship so far.  Watch out for your local competitors and their attempt to lure your customers away.  Don’t let you customers get to the point where they will venture out and look for a new place to go, and do not assume your customers are happy.  Assumptions build false confidence, which leads to lost customers. 

Can you confidently say your repeat customers are truly happy and satisfied with your business?  If you do not know or do not care to know then do two things, start waving bye-bye and start saving for expensive marketing and advertising costs.

For more details on how you can improve your customer service contact Koji Consulting!

DavidKoji@KojiConsulting.com