Opinion: Long-term customers want these 4 things

Customer loyalty is vital for the success of any business. Without loyal customers, there is no guarantee of consistent revenue. However, even a small mistake can ruin a loyal customer’s trust.

This is not just a hypothetical scenario; it can happen to anyone, including well-established companies with long-term relationships, when they mishandle a customer’s situation. Let me share a real-life scenario from my experience with a company.

My client was working on a new product for a key account and had been collaborating with a trusted supplier for a necessary component. However, things took a turn when the supplier outsourced the component to a sister company in a different state without my client’s knowledge. A significant issue resulted when the component arrived in lower quality and a cheapened appearance that didn’t meet the agreed-upon specifications.

Fixing this mistake would be quite costly for my client. It involved producing new components, disposing of the faulty ones and even delaying the product launch by a month. This incident also put my client’s relationship with their key account at risk.

Despite being a loyal customer for over 30 years and having spent millions of dollars with the supplier, my client was dissatisfied with their refusal to acknowledge the mistake and compensate for the ruined products. Consequently, my client switched their business to a competitor, causing the supplier to lose significant future sales.

This incident serves as a valuable lesson on the importance of handling customer issues wisely. For instance, the supplier could have started by offering a sincere apology. Promptly acknowledging their mistake and expressing regret would have demonstrated that they placed value on my client’s business.

Still, while an apology usually softens your customer’s feelings, it’s extremely risky if it’s your main retention strategy. Here are four practical ways to keep your long-term customers.

1. Stick to agreed-upon specifications and quality standards. Honor the specs and quality benchmarks set. Before tinkering with quality standards or timelines, always ask for a green light to avoid a world of potential trouble, like the supplier got by ticking off my client. Also, don’t forget the damage it creates for a company’s brand reputation when business leaves due to poor communications or problematic shortcuts.
2. Maintain effective communication. Recently, I resolved a continuous communication problem with a digital services supplier. They made promises they didn’t fulfill and didn’t provide timely communications to explain. I’m done with them and onto another supplier.

Effective communication remains one of the most profound weaknesses in customer service today. And it’s basic stuff – like, don’t make promises you can’t keep, and give customers regular updates on issues or aspects of the purchase that matter to them.  

3. Show transparency. Refusing to take responsibility, as the supplier did in my example, destroys trust and drives business away. Customer-oriented companies own up to their errors, listen empathetically to complaints and resolve them promptly with utmost satisfaction.

Not long ago, a client fouled up on the delivery of services for a large, new customer. Immediately, the salesman apologized for the miscommunication and outlined measures to prevent similar incidents in the future. The customer still switched back to their old supplier, but the salesman continued to make contact and reassure them – and his customer-focused approach ultimately won the next sale.

4. Demonstrate empathy toward customers when they experience inconveniences. Nothing is more frustrating than encountering a problem with a product or service, only for the company to downplay its significance. However, inconvenience is significant because it amplifies three things customers despise: friction, wasted time and the hassle of problem resolution. Results from secret shopper experiences our company conducts monthly for clients suggest that customers consider any of these aggravations serious enough to switch loyalties to a competitor. It’s wise to consider the inconveniences or aggravations customers encounter with your business and eliminate them.

Preventing customer churn requires excellent customer experiences and continuously nurturing trust and rapport. The best organizations never take loyalty for granted. When mistakes occur, they train their employees to listen, empathize, communicate effectively and ensure timely resolutions.

Consultant, professional speaker and author Mark Holmes is president of Springfield-based Consultant Board Inc. and SalesRevenueCoach.com. He can be reached at mark@salesrevenuecoach.com.