8: Customer Service & Building a Loyal Customer Base

build customer base

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In a competitive landscape, exceptional customer service isn’t merely an option; it’s a defining factor that can set your business above others. This section will explore critical aspects of customer service, and building a loyal customer base. In this section, you will:

  • Learn how excellent customer service impacts retention, reputation, and success, equipping you to exceed customer expectations.
  • Examine how skills like clear communication, empathetic listening, and effective problem-solving can enhance the customer experience.
  • Explore strategies like exceptional service, incentives, and engagement through email and social media to foster lasting relationships.

By the end of this section, you’ll have the tools to excel in customer service and drive long-term success.

Importance of Customer Service

importance customer service

In the competitive online world, providing excellent customer service is not just an option—it’s a necessity. It’s a key that differentiates your business from the rest. Exceptional customer service helps build loyal customers, setting you apart from competitors.

What is E-commerce Customer Service?

Before diving in, let’s define e-commerce customer services. In a nutshell, e-commerce customer service involves providing support to online shoppers through e-commerce platforms and channels during their entire journey. When we say ‘support,’ we mean:

  • Promptly handling various support requests to customer satisfaction.
  • Answering frequent inquiries regarding products, returns, delivery, etc.
  • Monitoring online channels to offer quick response times, and managing digital customer expectations.

This naturally leads us to the next crucial question…

The Impact of Customer Service on Your Business

What’s the impact of inferior customer service? Consider these statistics:

  • 27% of Americans report that ineffective customer service is their number one frustration (Statista).
  • 12% of Americans rate their number one frustration as “lack of speed” (Statista).
  • 72% of customers say that explaining their problems to multiple people is poor customer service (Dimensional Research).
  • 79% of consumers who used feedback to complain about poor customer experience online were ignored (Harris Interactive).
  • 33% of consumers would recommend a brand that provides a quick but ineffective response (Nielsen-McKinsey).
  • Only 17% of consumers would recommend a brand that provides a slow but effective solution (Nielsen-McKinsey).

Brand Image

By providing excellent service, you can create a favorable brand image. For example, you might:

  • Utilize chatbots on your website to offer instant support and answer common questions.
  • Personalize email marketing with special offers and curated suggestions based on customer preferences or order history.
  • Establish a strong presence on social media to engage with your customers, address their concerns, and share user-generated content to showcase how customers style your products.
  • Hosting exclusive events where customers can learn more about your designs and the stories behind them.

Davie Fogarty
 

Customer Retention

Providing top-notch customer service can greatly impact customer retention rates. When customers feel valued and have their concerns addressed promptly, they are more likely to stay loyal to your brand and make repeat purchases. They also tend to be happy customers who will also refer people by word of mouth and/or social media.

Consider these statistics from thinkimpact.com:

  • Customer retention affects ROI (return on investment), a 5% increase in CR results in a 25 – 29% increase in revenue.
  • Retaining existing customers can increase profitability even more – from 25% to a whopping 95%.
  • It can cost 5 to 25 times more to acquire new customers than to retain an existing one.
  • Repeat customers have been measured to spend an average of 67% more than new customers.

Word-of-Mouth Marketing

Satisfied customers are more likely to recommend your products, offering cost-effective and impactful word-of-mouth marketing. This kind of organic promotion is not only cost-effective but also highly impactful, as people trust recommendations from those they know.

Gavy Vee
 

Reducing Negative Reviews

By addressing concerns and providing solutions promptly, you minimize negative reviews that can harm your reputation. Strategies to reduce negative feedback might include:

  • Ensure your product descriptions and images accurately represent the products you’re selling, setting clear expectations for customers.
  • Only source products from high-quality vendors with the infrastructure and printing methods that meet or exceed your customers’ expectations.
  • Promptly addresses customer concerns and go-the-extra-mile to resolve any issues.
  • Encourage satisfied customers to share their positive experiences on your website or social media.

Ninja Bonus

Implement a post-purchase follow-up process. Reach out to customers to gather feedback, address any concerns or answer questions, suggest care and/or washing instructions, and mention your customer loyalty program before they post on review platforms.

Strategies for Customer Support

customer service expectations

Setting your business apart requires more than excellent designs, you’ll need to deliver outstanding customer support too.

Dealing With Common Problems

Address these common problems with a positive customer service response.

Late Deliveries: One common issue in POD businesses is the occasional late delivery. When this happens, it’s essential to communicate openly and honestly with the customer, providing a sincere apology and a clear explanation of the delay. Offer to track the package or expedite the shipping if possible.

  • Proactively monitor shipments and reach out to customers as soon as you become aware of a delay.
  • Apologize for the inconvenience and provide a clear explanation of the reason for the late delivery, as well as an updated estimated arrival date.
  • Offer a gesture of goodwill to compensate for the inconvenience, such as a discount on their next purchase or a complimentary accessory that complements their purchase.
  • Make yourself available for any further questions or concerns and ensure that you keep the customer updated on the progress of their shipment.

Damaged Products: If a customer receives a damaged product, immediately apologize and offer a replacement or refund. You may also ask the customer to provide a photo of the damaged item to help identify any issues in the production process.

  • Make it easy for customers to report issues, either through your website or customer service channels.
  • Upon receiving the complaint, sympathize with the customer’s situation and apologize for the inconvenience.
  • Promptly offer a hassle-free solution, such as sending a replacement product at no additional cost or providing a full refund, depending on the customer’s preference.
  • To avoid similar issues in the future, ask for the customer’s feedback and use this information to improve your packaging, shipping methods, or quality control measures.
  • Consider going above and beyond by including a small token of appreciation, like a discount code or a personalized note, when sending the replacement product.

Incorrect Sizes or Colors: In cases where the customer receives the wrong size or color, apologize for the inconvenience and offer to send a replacement in the correct size or color. It’s essential to address such issues promptly to maintain customer satisfaction.

Misprinted or Low-Quality Products: If a customer complains about a misprint or low-quality product, apologize and offer a refund or replacement. This is an opportunity to show your commitment to quality and customer satisfaction.

  • Make sure there is an easily accessible channel for customers to report such issues, whether through a dedicated form on your website, direct contact with your customer support team, or contact number.
  • Upon being notified of the problem, sympathize with the customer, apologize for the inconvenience, and take immediate action to rectify the situation.
  • Offer to send a higher-quality replacement at no extra cost and include a prepaid return label for the unsatisfactory item.
  • Use the customer’s feedback to identify potential improvements in your production process, materials, or quality control measures to prevent similar issues in the future.
  • As a token of appreciation for the customer’s patience and understanding, consider offering a discount on their next purchase or a free accessory that complements their purchase.

Lesser-Known Customer Service Strategies

Davie Fogarty
 

Proactive Communication: Rather than waiting for customers to reach out with issues or concerns, be proactive in reaching out to customers who have recently placed orders. This can involve sending a follow-up email to ensure they are satisfied with their purchase or offering assistance if they have any questions about the product.

Personalized Service: Adding a personal touch to your customer service interactions can make a huge difference. Address customers by their names, and try to add personal notes to your communications, such as mentioning their previous orders or any specific preferences they may have.

Surprise and Delight: Consider surprising your customers with unexpected gestures, such as sending a small gift or discount code for their next purchase. This can create a positive and memorable experience that will encourage repeat business.

Empower Your Customer Support Team: Give your customer support team the authority and resources to make decisions that will result in positive outcomes for your customers. When your team can act quickly and confidently to resolve issues, it leads to increased customer satisfaction and loyalty.

Solicit Feedback: Regularly ask for customer feedback through surveys or follow-up emails. This not only helps you identify areas for improvement but also demonstrates your commitment to continuously improving your products and services.

Develop a Comprehensive Customer Service Policy

Having a well-defined customer service policy in place before you need it can help ensure consistent and positive experiences for your customers.

Consider incorporating these best practices when creating your policy:

  1. Organization: One of the essential aspects of a successful customer service department is organization.
    • Create SOPs with clear guidelines on how to handle various situations, including returns, exchanges, and refunds. Being prepared is the easiest way toward success.
  2. Offer an email inquiry option: Customers may have questions about products, services, or policies. Make it easy for them to contact you via email and ensure prompt responses by following these steps:
    • Display your email contact option prominently on your website.
    • Provide separate email contacts for service/product information, customer support, back order, and shipping information.
    • Implement an email inquiry response policy with auto-responder emails and sufficient staff to handle inquiries promptly.
    • Set expectations for response times to customer email inquiries (e.g., 1 business day) and track your team’s performance to ensure they are meeting these standards.
  3. Provide a toll-free customer service support number: Many consumers prefer speaking with a live person to address their concerns. Implement these best practices:
    • Display a customer service toll-free number prominently on your home page.
    • Ensure your customer service department has enough staff to handle incoming calls promptly.
  4. Offer self-service options: One of the most underrated tactics in e-commerce is self-service. Over 60% of US consumers prefer automated self-service, such as through a website or mobile app for simple service tasks.
    • Create a chatbot sequence to respond to the most common customer issues.
  5. Use personalization techniques: Unlike situations when customers just want quick answers to basic questions, there are times when they are looking for a personalized approach and expert advice. Offering a personalized, knowledgeable approach is what sets leaders apart from other online businesses.
  6. Training and support: Invest in training and support for your customer service team to ensure they have the necessary skills and knowledge to handle any situation that arises.

Gorgias
 

Read MoreIgnoring e-commerce customer service can be a costly mistake. By establishing a proactive and responsive framework, before you need them, goes a long way toward handling issues professionally and positively. Check out this article on Richpanel.com: Ecommerce Customer Service: Best Practices, Software by Team Richpanel.

Customer Loyalty

Loyal customers add value to your business by providing recurring revenue and promoting your brand. Let’s explore both traditional and innovative ways to build and maintain customer loyalty.

Traditional Methods to Build Loyalty

  • Offer Excellent Customer Service: As discussed in the previous sections, delivering outstanding customer service is the foundation for building a loyal customer base. Respond to customer inquiries promptly, address concerns, and provide solutions to problems to make your customers feel valued and appreciated.
  • Create a Loyalty Program: Establish a loyalty program that rewards customers for repeat purchases. This can include discounts, freebies, or exclusive access to new products. A well-structured loyalty program will encourage customers to continue buying from your POD business.
  • Provide a Seamless User Experience: Make the purchasing process as smooth as possible for your customers. This includes having a user-friendly website, secure payment options, and a straightforward return policy. A hassle-free shopping experience will keep customers coming back.
  • Engage with Customers on Social Media: Build a strong presence on social media platforms and actively engage with your audience. Respond to comments, share valuable content, and showcase your products to keep your customers interested and connected with your brand.

Lesser-Known Methods to Build Loyalty

  • Personalize Customer Communications: Personalize your interactions with customers by addressing them by their names in emails and other communications. Sending targeted offers and product recommendations based on their browsing and purchasing history will make them feel valued and encourage repeat purchases.
  • Surprise and Delight: Unexpectedly delight your customers by including free samples, handwritten notes, or small gifts with their orders. These thoughtful gestures will leave a lasting impression and make your customers feel special.
  • Collaborate with Influencers: Partner with micro-influencers who share a similar target audience as your POD business. Influencers can create authentic content featuring your products, which will help you reach new customers and build trust with their followers.
  • Host Giveaways and Contests: Organize giveaways and contests on social media platforms to engage your audience and generate buzz around your POD business. This will help increase your brand’s visibility and attract new customers.

Shep Hyken
 

Conclusion

Building loyalty requires a combination of time-tested methods and creative strategies. From excellent customer service and loyalty programs to personalization and collaboration with influencers, there’s a diverse array of tactics to explore.

If you’re able to consistently deliver positive experiences and go beyond customer expectations, you’ll not only retain existing customers but also attract new ones. This commitment to customer satisfaction lays the foundation for long-term success in the competitive world of print-on-demand.

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