Impact of the Recession on Customer Loyalty

Many business owners and managers will tell you that they are struggling to maintain market share and service levels to guarantee customer loyalty. This has been a trend for a number of years and particularly became difficult once the recent economic downturn kicked into full swing. To off-set the trend, companies are striving to provide excellent customer service, create moments of truth that make the customer feel special and encouraging customer service representatives and employees at all levels to exceed customer expectations.

A big challenge is that companies realized that in addition to losing customers, they were also losing profits as many middle class and some higher-income customers retrenched on spending. To offset their reduced disposable capital, consumers have changed their spending habits, stopped eating out and traveling as much, limited their entertainment budget, shopped less for non-essential items, and cut services that they considered a luxury (e.g. grass, pool, and pest control services) and started handling those functions personally. They also started doing more comparative shopping, spent more time bargain hunting, attended yard sales and consignment shops, clipped more coupons, and in many instances traded down to less expensive store items or those that were not in the “status symbol” or name brand categories.

The result of all these cultural and societal changes has been that now that customers are accustomed to the “new economic normal.” They realize that they can actually live well and be comfortable at a lower spending level and using lower quality products. They even realize that in many instances they actually happy with their new lifestyle and spending habits. As a result, even though the economy has started a slow upward movement, consumers are now remembering the economic pain they suffered and are stashing away as much as they can in the event the recession comes back.

What all this means for retail businesses, service providers and product manufacturers are that they must retool their marketing and production mentality. They are reducing on-hand inventories, minimizing staff hiring and using part-time employees or outsourcing services and re-examining the way they deliver customer service in a changing world. In particular, they are changing the manner in which they show added value to their customers in an effort to gain and retain new ones.

The changing business environment has resulted in a winning proposition for many consumers who now feel that they are in a power position related to making purchases. This is especially true in instances of major buying decisions (e.g. cars, houses, property, recreational vehicles, and other higher-end items). Many realtors and dealers have experienced a large inventory surplus due to a slowdown in purchases and tightened lending policies from financial institutions. This has created a buyers market.

By doing adequate research and coming to the sales environment with knowledge of manufacturing costs, competitive pricing, and product and service details, the consumer is now often in a position to negotiate strongly and get pricing that is not only fair but also better than they could have gotten in the past. Retailers in nearly every type of product line and business are willing to negotiate and offer discounted prices when pressured by the customer to do so. They do this because they realize that their competitors will discount if they do not and the customer is likely to walk away, if not satisfied with an offer they receive. In addition, with a global economy and access to products from around the world only a mouse click away, companies realize that they must deal or die.

From a customer service perspective, it is imperative that managers develop a customer-centric mindset and that customer service representatives and everyone else in the organization adopt a can-do/must-do attitude when it comes to communicating effectively and working with customers. They must provide the best customer service possible in any instance where there is a of customer-provider interaction. Only through such initiatives will organizations be able to show customers that they offer the best value, care about their wants, needs, and expectations, and are willing to put forth the effort to help achieve customer and brand loyalty.

About Robert W. Lucas

Bob Lucas has been a trainer, presenter, customer service expert, and adult educator for over four decades. He has written hundreds of articles on training, writing, self-publishing, and workplace learning skills and issues. He is also an award-winning author who has written thirty-seven books on topics such as, writing, relationships, customer service, brain-based learning, and creative training strategies, interpersonal communication, diversity, and supervisory skills. Additionally, he has contributed articles, chapters, and activities to eighteen compilation books. Bob retired from the U.S. Marine Corps in 1991 after twenty-two years of active and reserve service.

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If you need help building an author platform, branding yourself and your book(s) or generating recognition for what you do, Make Money Writing Books will help. Bob’s popular book addresses a multitude of ideas and strategies that you can use to help sell more books and create residual and passive income streams. The tips outlined in the book are focused to help authors but apply to virtually any professional trying to increase personal and product recognition and visibility.

The Role of Eye Contact in Customer Service in a Diverse World

by Robert W. Lucas

The Role of Eye Contact in Customer Service in a Diverse World

It has been said that the eyes are “the windows to the soul.” Eye contact is very powerful. This is why criminal investigators are often taught to observe eye movement in order to help determine whether a suspect is being truthful or not.

In most Western cultures, the typical period of time that is comfortable for holding eye contact is 5 to 10 seconds, then an occasional glance away is normal. Looking away in many cultures can often send a message of disinterest, or dishonesty, or lack of confidence. If either the length or the frequency of eye contact differs from the “norm,” many people might think that you are being rude or offensive. They might also interpret your behavior as an attempt to exert power or as flirting.

Other potential nonverbal problems when dealing with customers can be caused by looking down before answering questions, glancing away continually as your customer talks, blinking excessively, and other such eye movements can create a negative impression.

In any case, your customer might become uncomfortable and may react in an undesirable manner (for example, becoming upset or ending the conversation) if you use eye contact in what they perceive as an inappropriate manner.

As with all other aspects of workplace interaction in a multicultural customer service environment, do not forget that cultural values and practices often influence the way in which people communicate and interpret message signals.

Just as you send messages with your eyes, your customer’s eye contact can also send meaningful messages to you. A customer’s lack of direct eye contact with you could send a variety of messages in a westernized culture. It might send messages such as a lack of interest, confidence, trust, or dishonesty, depending on how you interpret those cues. For example, if you are watching a customer shop and notice a quick loss of eye contact each time you try to engage the customer visually, the customer might be nervous because he or she is shoplifting, or the customer simply might not want your attention and assistance.

As with any other form of nonverbal communication, always look for clusters or multiple cues before interpreting the meaning and deciding on a course of action. This is because you are dealing with humans whose background, gender, personality, culture and various other factors can easily impact their intent. If you filter based on your own personal beliefs or background, you can potentially cause a service and/or relationship breakdown with your customer.

Customer Service Skills by Robert Lucas

About Robert C. Lucas

Make Money Writing Books: Proven Profit Making Strategies for Authors by Robert W. Lucas at Amazon.com.

Customer Service Strategies That Aid Customer Satisfaction and Retention

by Robert W. Lucas

Customer Service Strategies That Aid Customer Satisfaction and Retention

It seems like many organizations are spending a lot of time, effort and money try to impress or “wow” customers, rather than focusing on solid strategies for simply giving them what they want and expect. Unfortunately, a lot of people I know tell me that they are not impressed with all the razzle-dazzle of the latest technology and scripted responses used by customer service representatives. Instead, they just want service providers who are knowledgeable, empowered to act, can communicate effectively and make appropriate decisions in a service situation, especially if service has already broken down.

The following strategies can help accomplish customer satisfaction and potentially lead to more loyal customers.

Create an effective communication environment. One trend that seems to be gaining ground with a lot of companies is that they are actively trying to improve the systems that collect information from customers and communicate with them. Not only must service representatives communicate; they must also actively listen to what the customer is saying and address concerns, needs, and expectations promptly and professionally. Part of this communication is the integration of online and mobile technology processes that give customers a variety of options to access information and service twenty-four hours a day, all year long (24/7/365). All of this is in response to the recognition that there has to be a better response to life balance issues of customers who are demanding that someone be “on-call” to address their needs when they want service.

Provide enhanced service training. Concerned organizations are also working harder to train their employees to really listen to customers and effectively analyze what they are saying. Whether customers communicate in person, over the telephone or via one of the numerous technology channels, successful organizations are striving to better understand and address customer needs in a timely and professional manner.

Using technology that makes sense. In past decades, the use of computers has been integrated into nearly every aspect of business and service delivery. More recently, mobile technology and person data delivery systems have created a more tech-savvy customer base which assumes that service mechanisms, to which they have access and use daily, will be integrated into the service solution equation. Intuitive approaches, apps, and other technology-based mechanisms are being designed and used by many of the top-rated organizations in the 21st Century.

The key to effectively creating and supporting a truly service-oriented customer-centric environment in today’s world is to step back and analyze what the actual needs of customers are and then set out to find ways to address them. This gets back to the first point…actively listening to your customers.

For additional information, ideas, strategies on how to build stronger relationships with customers in order to help achieve customer satisfaction and build customer relationships, get a copy of Customer Service Skills for Success.