6 Tips for Increasing Customer Engagement and Loyalty

What is your strategy for growing your business? Are you focusing on your current customer base or hunting new customers?

Last week I had the opportunity to participate in a "tweetchat" or meetup on Twitter concerning the topic of "customer service". This discussion is held every Tuesday at 9:00 p.m. E.S.T. Search for the hashtag, #custserv, on twitter and you can also join in this educational discussion. During the discussion, it was evident that customer service is critical to customers and a key differentiator for firms. If a company can provide high quality customer service, this is a great way to stand out in today's competitive and crowded marketplace. Companies can increase customer engagement by providing knowledge and information so customers can solve their problems. Effectively, the company representative becomes a resource and true business partner to customers. After some reflection, here are some tips on increasing customer engagement:

1. Help the customer identify and clarify their needs and challenges.
In my consulting experience, I have found that asking clarifying questions is critical to the success of a project. You can serve as a valuable resource for a customer by asking clarifying questions. Clarifying questions often start with WHO, WHAT, WHERE, WHY, WHEN and HOW. Closed ended questions typically elicit a yes/no response and show the "symptom" rather than the real issue. If used effectively, clarifying questions can uncover the real issue rather than a symptom, which is often where people start and stop their analysis.

2. Identify opportunities to educate the customer.
It has been my experience that educated customers are frequently loyal customers. Or if they are not current customers, education often smoothes the conversion process. Loyal customers can serve as brand ambassadors for your firm and are an excellent source of referrals. Educate your customers on how to use your product or service. Look for ways to help them solve systemic challenges. Help your customer to become a hero and problem solver in their organization.

3. Show the customer respect.
It sounds simple enough. This weekend I had a very poor customer service experience with a business. I had been a customer of this business since 1991. However, this business made some mistakes recently and took advantage of the situation. I personally visited the business on Friday last week to negotiate and hoped for an amiable resolution. This business refused to admit there was a problem or take any responsibility for it. Needless to say I did not perceive that my business was valued or important. This is not the way to create positive relationships with customers.

4. Listen to your customers.
I have seen many companies operate in a vacuum. They rely on their product management or marketing departments to generate new product or service ideas instead of reaching out to customers for input. Consider establishing a customer advisory board to provide input and feedback on new product and service ideas. Another channel for innovation is your sales team. They are out in the field interacting with customers and are often a rich source of insight.

5. Change your perspective on problems.
I had a friend who worked for a software development company. She expressed concern that the software occasionally had bugs which were discovered by customers. Her co-workers were often stressed by this issue. However, my friend had a different perspective than her co-workers. She looked at it as a learning opportunity for the company. When the customer called in with the issue, she handled the call very calmly and proceeded to ask the customer questions about how they would like to see the software function. She was successful in shifting the customer's focus from "problem" to "resolution". By utilizing this approach, she was succesful in uncovering some outstanding software enhancement opportunities. In turn, the firm listened to its customers, implemented those changes, and as a result, created a very loyal and engaged customer base.

6. Follow through on your commitments.
Employees at many companies are very busy these days. Companies have downsized and employees have to do more work with the same or even less pay levels. It is very easy to make a commitment and forget to follow through, given the hectic pace at many companies. However, your customers remember discussions and commitments that are made. As a professional, you can stand out from your competition by simply following through on your commitment. Whether it is providing follow-up information or introducing your customer to a potential networking partner, or whatever the case may be. By following through on your commitments, you will convey your professionalism and the high value you place on the relationship with your customer.

It's a simple formula: Increase customer engagement and loyalty by becoming a professional resource for your customers!  I would love to hear your ideas on increasing customer engagement.  Please drop me a line at chrissann@blacklabventures.com.