Every week, I read dozens of articles on customer service and customer experience from a wide range of sources. Below are my top five picks from last week, along with my takeaways. I’d love to hear your thoughts as well. Study Finds Brand Loyalty Has Limits in This Economy by Betty Lin-Fisher (AOL) Strained by […]
Every week, I read dozens of articles on customer service and customer experience from a wide range of sources. Below are my top five picks from last week, along with my takeaways. I’d love to hear your thoughts as well.
(AOL) Strained by tighter budgets and product price increases, more shoppers are willing to ditch their favorite brand for a cheaper alternative, a new study finds.
My Comment: We kick off this week’s Top Five roundup with an article about loyalty and price sensitivity. No doubt people will pay more for better service. When it comes to loyalty programs, customers like the points, perks, and discounts. This article looks at how much more a customer is willing to spend before loyalty disappears. Consider this finding: On average, a 16% price increase was enough to push shoppers away from their favorite brand, with the median being a 10% price hike. Baby boomers said they would switch to a cheaper brand because of a 12% increase, while Gen Z and millennials said it would take a 17% price increase for them to switch.
(CX Today) Organizations often struggle to see CX problems until customers complain because they rely heavily on internal system metrics. A robust CX visibility strategy requires looking beyond basic server health.
My Comment: Do you have a CX Observability Strategy? (Some of you are asking, “What is a CX Observability Strategy?”) The reason to have one is that companies often don’t realize there are customer experience issues until enough customers complain, and by then, it’s too late. The strategy is an approach to monitoring all CX systems, so that when something goes wrong, you can quickly find out what broke, why it broke, and who needs to fix it.
(InternetRetailing) In an era where customer acquisition costs continue to rise, advertising platforms become increasingly unpredictable, and consumer loyalty appears more fragile than ever, retailers are searching for sustainable ways to build long-term relationships with customers. Increasingly, the answer lies in membership.
My Comment: A membership experience is an elevated customer experience. Membership implies you belong to something, and as a result, you’ll be treated better. This article describes the membership model of some of the most recognizable brands, such as Amazon, Costco, and Nike, and how they have created membership models that keep customers (members) coming back.
(CX Dive) Customers are still willing to engage in loyalty programs, but only if the value exchange is obvious, relevant and trustworthy.
My Comment: The first article in this week’s roundup was about loyalty and price sensitivity. No doubt that loyal customers will only be willing to pay so much more compared to a competitor. That’s why this article is relevant. Customers stay loyal as long as the value is obvious. The result is a deeper and trusting relationship that gets customers to say, “I’ll be back!”
(Brittany Hodak) The Service Recovery Paradox suggests that a customer who experiences a problem—and then receives an exceptional resolution—can become more loyal than a customer who never had a problem at all.
My Comment: The customer service recovery paradox is an important concept. In short, it is defined as when a customer has a problem, and the company resolves it, the customer is often happier with the company than if the problem had never occurred. My friend and fellow CX expert, Brittany Hodak, shares her take on this important concept. She uses one of my favorite brands, Sweetwater, to illustrate the power of this idea.
(CX Dive) Ongoing coaching, a team they trust and the confidence to handle hard calls can do more to retain agents than onboarding alone, experts say.
My Comment: My philosophy about customer service training is simple: Training isn’t something you do. It’s something you do. It is not a “one and done” strategy. Once employees are trained, reinforcement comes from follow-up training. This article includes commentary on employee training from some of the best experts in the CX world.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
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