Every business wants happy customers. After all, satisfied customers are often the ones giving repeat business. Repeat customers are the lifeblood of many businesses. What’s more, increasing customer retention by just 5% has been shown to increase profitability by 25-95%.
On the flip side, 73% of customers say they would shop elsewhere after just one negative interaction. That’s why when something goes awry, a swift but thoughtful response can make all the difference. Here are ways to turn a disgruntled customer into a happy one. Spoiler alert: customer retention gift ideas play a part.
Keep time on your side
Limit the amount of time between a customer complaint and your response. An extended wait—in person, over the phone or online—could compound the problem. An online retailer might benefit from having prepared email templates at the ready. When necessary, send off an apology note and explain how you will correct the issue. If you’re sending a replacement product, show goodwill by including a branded sticker in the package.
When interacting in person, make customer satisfaction your top priority. Keep a stock of gift cards in RFID gift card holders near the register. Include them with small customer gifts, like ceramic mugs or water bottles, that can be handed out, along with an apology, for a mishap.
Listen and learn
If your company uses customer surveys, keep a close eye on what’s being shared. Over time, you’ll be able to spot reoccurring issues that can be addressed. Encourage customers to participate in surveys, and offer an incentive in exchange for their feedback. If you’re in the restaurant business, for instance, a cute mug and free coffee token are thoughtful choices.
Keep an eye on online reviews too. Regular monitoring may help you connect a review with a customer experience so you can react before it’s too late. On social media, a short and sweet response to a negative comment, with an invitation to talk further by phone or email, could produce positive results. If you are able to connect, offer a solution to their problem and encourage them to return. For example, a pet-focused business might let a customer know a small gift bag, with a pet bowl and pet bag dispenser, will be waiting behind the counter at their next visit.
Focus on making things right
We’ve all heard “the customer is always right.” No matter the issue, avoid assigning blame and focus on making things right. If a customer needs to exchange an item, help them find a suitable replacement. Put their new item in a reusable tote bag—instead of the typical packaging—and send them off satisfied. Or, if the beverage you served wasn’t at the right temperature, the next one’s free—and so is a collapsible Koozie®. Somebody says the book they bought from your online store isn’t what they expected? Thank them for their feedback, help them find something new and include a bookmark or mini candle to wish them well.
Offer a little something extra
When a customer is dissatisfied, you might need to go a step beyond solving the problem to win them back, like giving them a tangible incentive to return. If a member of your gym or fitness studio is considering going to the competition, offer some swag if they agree to stay. A branded T-shirt or tank top might be just the thing to pump them up. If not, a free month might sweeten the deal.
If an automotive shop customer mentions that your prices are higher than another retailer’s, be ready to explain the added value your business offers. And thank them for sharing by handing them an LED flashlight or tool bag plus a bonus, like a coupon for a free oil change.
Customer retention gifts save the day
Hopefully one mistake won’t undo a long stretch of great service—but sometimes it happens. A quick response with an apology and an explanation can go a long way. But to ensure that frown-to-smile transition is complete, provide a thoughtful customer gift to restore their loyalty.