Ann McFerran understands the power of loyal customers. Ann is the CEO and Founder of Glamnetic, a magnetic lash beauty brand that she built from her small living room in Koreatown, Los Angeles, into a $50 million global company. Her secret? Ann is really good at turning customers into super fans. I’ve served small and midsize businesses (SMBs), like Glamnetic, my whole career. These businesses are some of the scrappiest, grittiest, and most successful out there. And they are run by some of the most innovative, determined, and passionate people around. One of the things that makes SMBs so special is their connection to their own customers. When it comes to serving customers, small business owners are on the front lines. They know and understand their customers in a very personal way. How, then, can SMBs take these strong connections with customers and translate that into business growth? How can you activate your customer base to be vocal advocates for your business? While the journey to supporting your customers is different for every business, here are four tips that I’ve found helpful in leading teams to put customers first. How to turn customers into fans of your business 1. Lead with values that serve your customers Regardless of how you serve your customers, or who your customers are, there is one underlying principle that will help you earn their trust: values. Your company’s values are the foundation upon which your business is built. They are a North Star, guiding you through strategy, growth, and decision-making. Values are also how your business shows up in the world. In my experience, businesses with values that authentically and empathetically put their customers first have an advantage. Values like these help motivate employees, build common purpose, and ensure your team is always focused on the thing that matters most—customers. And when customers see that you have built a company that is entirely geared towards helping them, you’ll be rewarded with trust and endorsements. If your business already has a set of values written down, talk to your team about how those values translate to customers. And if you don’t, it’s never too late to articulate a set of values that aligns with your company and your customers. 2. Listen and learn from your customers One of the things I ask every member of my team to do is to walk in our customers’ shoes. It sounds so simple, but empathy really is a superpower. Whether you are a CEO, or just starting your career as an intern, set aside time to meet with your customers. Talking to small businesses is my favorite part of my job. It gives me the opportunity to hear directly from our customers what their pain points are, to understand from them how they use our platform, and to learn about how we can improve. Listen in to customer service calls, or even put your hand up to do the job of a customer service advocate for a day. Talk directly with customers about what’s working, and what’s not. Listen and respond to reviews online. Don’t be afraid to admit when you’ve got it wrong. And always be focused on improving. 3. Leverage data to understand your customers Data can be a secret weapon when it comes to understanding your customers’ needs and exceeding their expectations. Traditionally, sophisticated data analytics were available only to big businesses. Fortunately, that is changing, and we’re seeing more tools available to help SMBs collect and leverage data to support strategic decision-making. A report published by SCORE found that 51% percent of small businesses believe analytics are critical, but only 45% are tracking data. I hope these figures continue to increase, because when harnessed creatively and thoughtfully, data can help you win customers for life. The right data can equip you to understand your customers’ pain points, deliver on your value proposition, exceed your customers’ expectations, and tailor support for customers. Data can be a powerful predictor of customer trends, patterns, and preferences. It can also help you understand and improve the overall customer support experience. Finding the right tool(s) for your business to collect, store and analyze data can be tough. Whether you are using surveys, consumer intelligence reporting, website tracking, or CRM software, I suggest looking for integrated software that provides real-time insights, analytical or forecasting capabilities, and that can scale with your business. Once you have the right tools, collecting and analyzing the data can be overwhelming or disorientating—particularly if you’re working with large data sets. I always find it valuable to clearly define the business questions to which you’re seeking answers before diving into a sea of numbers. Armed with these insights, don’t forget to empower your whole team with this information. For employees working on the front lines, understanding the drivers and motivations behind customer behavior will help them deliver great customer service, and ultimately turn your customers into super fans. 4. Harness innovation to better support your customers We’ve all had that one amazing customer service experience. A company that went above and beyond to help make something right for you. Where you’ve had these experiences, chances are you talked about them with friends, wrote positive reviews, and continued to support those companies. When it comes to customer service, people are increasingly interested in flexibility—some prefer the convenience of a live chat while others prefer the interpersonal connection of a phone call. However you deliver customer support, innovation can help empower your frontline support teams to deliver great service. Adopting AI-powered chat, for example, can be a game changer for your customer service. Chatbots can help answer customer questions about a product, educate your customers, resolve problems, or even help lead customers through the sales funnel. Importantly, chatbots are also able to deliver friendly, accurate responses to customers due to national language processing capabilities. In a survey, 64% of respondents appreciated the 24-hour service that intelligent chat could provide. Customer experience can be the difference between success and failure in customer retention. Of course, we need to get the basics right. Long wait times for service or advocates who aren’t properly trained to provide support have the potential to impact customer retention. But innovation is a powerful tool to enhance the customer experience of a strong base. And a great customer experience can help turn your customer into a super fan. Customer success = business success Customers know when a company puts them first. To deliver on this promise, build a strong foundation of values, leverage data for success, harness innovation, and listen and learn from customers. The reward? You’ll have customers for life. And that’s a great thing for your business. FAQs about turning customers into fans How can you turn your customers into advocates? There are four ways you can turn your customers into advocates: 1. Lead with values that serve your customers, 2. Listen and learn from your customers, 3. Leverage data to understand your customers, 4. Harness innovation to better support your customers. What is an example of customer advocacy? An example of customer advocacy might be when a satisfied customer talks about the business with friends, writes a positive review, and continues to support that company What are the benefits of customer advocacy? Customer success = business success. Customers know when a company puts them first. If you deliver on this promise, build a strong foundation of values, and harness innovation, then you’ll have customers for life. Source : https://www.weebly.com/
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Reviews and rewards are the biggest factors swaying consumers in the new digital landscape. Brands need to get with the program. We've come a long way from the negative and misleading image of rewards programs only being for low-income consumers. I know millionaire investors who make sure they use their air miles and take advantage of the punch cards and point systems at local mom-and-pop cafes. The traditional approach of building a brand and a loyal customer base is being replaced by rewards programs, which disproportionately benefit bigger spenders. The more these consumers spend, the more they get back — setting up a virtuous cycle for both buyer and seller. In our survey of over 50,000 consumers, only 3% said they would stay loyal to their top brand if a competitor offered cashback or points incentives. The explosion of the number of products at marginal price differentials on retail platforms helps explain this dramatic shift. With so many transactions taking place online, consumers are being swayed by the best deals, the best reviews and the best rewards. Rewards build up over time, so the purpose of these programs is to create an ongoing relationship with customers, especially those who spend the most. It's a simple equation: Offering them the most value ensures they remain the most loyal. Brand equity may not be dead, but it is being redefined by the need to reward repeat customers in this more complex operating environment. Reward programs are everywhere From your local juice shop offering a free beverage after collecting 10 stamps to the major players such as Amazon Prime and Target Circle, rewards programs are ubiquitous and public awareness is high. Almost 80% of people in our survey said they were familiar with apps and websites that offered purchase rewards. According to software company Oracle, 72% of consumers belong to at least one loyalty program. While reviews undeniably wield considerable influence over consumer choices, it's evident that spending habits are increasingly pivoting around the strategic redemption of reward points. For instance, when Discover Card designates certain vendors offering additional points for a limited period, consumers are spurred to intensify their spending at these locations. Such strategic initiatives benefit consumers with bonus points and stimulate the entire ecosystem, creating a win-win scenario for all parties involved. Brand loyalty is also being informed by the preferred rewards of consumers, with two studies divided over the No. 1 category: Capgemini says 69% of consumers prefer cashback above all other rewards, while Merkle found that 79% of respondents preferred discounts. The constant is that everyone wants to be recognized and appreciated for their loyalty. What works best for you? There are two types of loyalty programs: Your own hosted program and an externally hosted program that offers a rewards ecosystem. No matter which you choose, you don't need to have an enterprise business. A hosted program can vary from business to business, but it's likely the type you are most familiar with. You spend enough money or make enough purchases at a business and are rewarded with a free item or something similar from the same business. Almost every small business now has punch cards or a point system that rewards us when we return regularly — whether it be your local coffee shop or the restaurant down the street. Alternatively, I am seeing growth in external loyalty programs that allow brands to reach new customers and reward them for sticking around. These programs can be broken down into two more categories: One that partners with individual industries or market segments, such as Ibotta's hosted rewards program that offers rebates in grocery and retail, and the other that operates across the entire consumer landscape. I call the second type of program a "unified provider." This type of rewards program is evolving in unique ways as mobile apps allow people to be rewarded based on where and when they are spending across varying stores and brands and accumulate rewards. Going further than games The surge in mobile usage over the last decade has unlocked vast potential for these unified reward platforms. My company aims to become the primary channel for consumers to amass rewards from diverse spending avenues. Initially focusing on mobile gaming, we plan to extend into other sectors like fuel, groceries and other areas consumers wish to be rewarded in. One of the key benefits of a unified provider lies in its cumulative nature. This allows consumers to garner more points than they ever could through multiple independent programs. The more consumers spend across diverse categories, the more rewards they accrue, creating higher value for the unified provider. In turn, the provider can afford to share more rewards with the customer, ensuring they stay engaged with various vendors. In essence, this creates a virtuous circle where all parties involved come out winners. Do your homework The arena of gaming for rewards and mobile rewards programs is relatively uncharted. Understandably, people harbor skepticism about earning gift cards simply for playing a game — it seems too good to be true! This newness and a dynamic marketplace indicate a clear need for brands to do their homework thoroughly before venturing into these emerging rewards ecosystems. If you want your business to use an externally hosted reward program, know that the market can be volatile. New providers often spring up only to vanish just as swiftly if they fail to strike a balance that benefits all stakeholders. Reliable resources are crucial for gathering insights and making informed decisions. Major contributors to the app install ecosystem regularly publish performance indexes of leading publishers. These indexes often include information about players in the rewarded engagement field, making them valuable starting points for verifying potential partners. Reward retention The narrative of consumerism has pivoted; it's no longer just about brand loyalty. The innovative rewards program landscape, from local businesses to global corporations, is expanding, evolving and firmly establishing its presence. And it's not just about choice or variety. Repeat customers generate around 65% of a company's revenue, underlining the vital role of rewards programs in customer retention, sustainable business growth, and market differentiation. They've become much more than just a trend; rewards programs are an essential strategic instrument in today's consumer market. Brands that recognize this shift and harness the power of rewards will thrive in this dynamic environment, enhancing their consumer relationships and, ultimately, their bottom line. Source: https://www.entrepreneur.com Image Credit: Pexels.com | Photo by Torsten Dettlaff
It is not too soon for retailers and e-tailers to prepare for the upcoming “competitive holiday shopping season.” In a blog on its site, Salesforce says that while last year retailers were worried about “increasing profitability in a challenging economy,” this year the focus will be on “keeping loyal customers happy.” This is important because Salesforce reports that it’s getting more expensive to attract new customers—and marketing budgets are shrinking, making existing customers all the more valuable. And, Salesforce says, “Since existing customers drive most of retailers’ revenue, keeping them satisfied this season should be a top priority.” When they’re shopping, pricing and value are important considerations for consumers—82% look for coupons before making a purchase, and “66% expect companies to understand (and meet) their unique needs and expectations.” And according to the blog, “Customer loyalty is on the rise.” Salesforce expects repeat buyers will be responsible for more the one-third of holiday orders this year. The Salesforce blog shares five holiday shopping predictions for 2023. Holiday shopping predictions 1. Digital sales will be influenced by generative and predictive AI Salesforce research shows that “17% of consumers have already used GPT for product research and inspiration, and 10% will likely use it to help build their holiday shopping lists.” Since generative AI uses human prompts, Salesforce expects retailers will use customer data to personalize the shopping experience. Salesforce predicts: AI “will influence $194 billion in global online holiday shopping spend.” 2. The returns experience impacts sales In 2022’s holiday shopping season, returns increased by 12%. To reduce this number, Salesforce recommends that your sales policy be:
Salesforce predicts: Poor returns experiences "will put 21% of online orders at risk.” 3. BOPIS still matters Buy-online-pickup-in-store (BOPIS) became wildly popular in 2020 at the beginning of the Covid-19 outbreak. According to Salesforce research, 39% of shoppers look for retailers that offer a BOPIS option. Last holiday shopping season, 20% of online orders “were fulfilled via BOPIS, surging [to 33%] after the shipping cutoff dates.” And Salesforce adds, “41% of shoppers are more likely than a year ago to buy after they browse online for inventory available in physical locations.” To execute BOPIS properly, you should invest in training your employees and the right tools. But it’s worth it—Salesforce research shows businesses that offered BOPIS grew their online revenue seven times faster than brick-and-mortar stores that didn’t provide it. Salesforce predicts: "BOPIS will drive $28 billion in incremental global store sales when customers pick up their online orders." 4. The best ROI will come from social media ads Consumers increasingly rely on social media in their shoppers’ journeys. Traffic referrals from social channels were up 27% year-over-year in Q1 of 2023. And now, social is impacting in-store behavior as well. According to Salesforce research, “In the past three months, more than half of consumers reported going to a physical store to see or buy products they discovered on their social feeds." While influencers previously “drove the bulk of social engagement,” Salesforce research shows influencer impact is lessening and that “shoppers are nearly twice as likely to buy a product if it was advertised in their social feeds than if they saw an influencer promote it.” In addition, half of shoppers “are more likely to visit a retailer’s website after seeing a social media ad, compared to 39% of shoppers who receive a promotional email.” Salesforce predicts: "Social media advertising will drive 10 times more online holiday shopping visits than traditional marketing." 5. Resale sales continue to rise Consumers are embracing the resale market because it saves them money and helps the environment. The online resale phenomenon started with eBay and now encompasses numerous online marketplaces. Now, reports Salesforce, “Brands and retailers are reselling their used merchandise from existing customers.” After a customer trades in a product, “they’re encouraged to buy a new item—creating stickiness with the brand.” This encourages customers to return to the website, which may lead to additional purchases. The recent trend for buying resale merchandise was fueled by millennials and Generation Z, who wanted “to save money, be more sustainable, and get products faster.” And over one-third of consumers plan to buy a used item for someone else in the next six months. Salesforce predicts: "17% of gifts this holiday season will be resold items, saving 32 billion pounds of additional waste in landfills." Tips for retaining customers at the holidays Since customer retention is so important for retailers and e-tailers, here are some ways to do that:
It's not too early to plan your holiday marketing strategy Now is the time to develop your holiday sales strategy. The first step is understanding what your customers want, like, and their purchase history. Start with the information you have: your customer data. Use marketing automation tools and AI to learn more. By taking the time to understand your customers and use their data to create personalized experiences, you can significantly improve customer retention during the holiday season and beyond. Source: https://www.allbusiness.com Image Credit: Pexels.com | Photo by Jill Wellington
A startup is among the most exciting workplaces in today's business landscape. It suits problem solvers, people who love the challenge of figuring out how to get a promising idea off the ground. For others, what attracts them to a startup is the chance to be part of a company early on and see it through its growth stages. But since startup environments can be unpredictable, working at one requires grit, flexibility, and openness to feedback. The last is particularly important because it directly contributes to team members' improvement. Feedback helps people understand why their actions bring certain outcomes. It also creates a team with a growth mindset. Welcoming feedback is also crucial for helping the company grow. Startups must be agile and adaptable. They must innovate rapidly to suit changing customer needs while staying ahead of others in the field. Without feedback, companies grow directionless and people stagnate. How positive feedback benefits employees It's simple but often overlooked: a little positive feedback goes a long way. Acknowledging when employees work hard or deliver exceptional work will help them feel valued, and their efforts are seen. Positive feedback also creates stronger relationships—after all, who doesn't like people who appreciate them? Why constructive criticism is necessary, but tricky While anyone would like it when their managers notice the good things they do, few people stay cheerful when others notice their shortcomings. Yet constructive feedback is an essential part of giving feedback. It can be difficult to deliver this type of criticism, though! To do this effectively, the first step is to focus on the behavior, not the person. The feedback a person receives should help them Constructive criticism is essential for growth but can be difficult to deliver effectively. It is important to focus on the behavior rather than the person. The manager should show–through words and actions–that they are giving this feedback to be supportive. The message should contain specific, actionable steps the recipient can take. Why give feedback, anyway? I understand if managers or business owners might be reluctant to dedicate time to feedback. Especially in a startup, where there are endless things to do at any given moment. But letting your team know how they're doing leads to better performance. When employees receive feedback, they better understand what you expect from them. So they can align their work with your requirements and the company's broader goals. Employees who receive high-quality feedback also gain a sense of ownership over their work. They can better identify improvements in their processes, which helps them identify obstacles before they become too big to handle. For example, suppose you have a teammate who struggles with time management. Instead of telling them, "Just work faster," which is vague and offers no actionable information, you could give specifics on how they can stay on-task. For starters, you could review their list of things to do and help them prioritize these by urgency. When you teach someone how to course-correct once, they won't need repeated reminders in the future. And this goes for peers, too. Feedback among team members of the same rank will help them build stronger relationships. Having a team that can let each other know areas of improvement without anyone feeling slighted is a special thing. These open lines of communication also allow people to address misunderstandings before they escalate. Challenges of giving feedback in startups There are many pros, but there are also challenges in giving feedback in a startup. For one, the pace at this type of company can be very fast. So, there could only be a small window of opportunity to give feedback about a crucial process before it becomes moot. This situation leads to missed opportunities for improvement. Of course, you also risk losing valued employees when you give them feedback. Managers might be hesitant to provide honest thoughts on an employee's performance–they might be afraid of alienating their teammates. How to deliver feedback Given all these realities, the first thing to do is establish a feedback culture early. When people are used to opening up about work processes, managers need not worry about anyone getting hurt or missing the chance to say what they think. If you've established a different culture within your organization, turning it around is possible–it'll take a while, but it can be done. Managers must also frame feedback so it considers a person's long-term growth. It's the difference between editing a junior software developer's code yourself and letting them know what needs to be changed. A manager who corrects the code might say that only the work matters. In contrast, one who corrects others' behavior shows that they care about their teammates, which builds trust and engagement. How feedback contributes to startup success Many successful startups have embraced the importance of feedback in their culture and have used it to achieve growth and success. For instance, Slack, one of the most popular communication and collaboration platforms, encourages users to provide feedback to make decisions about future development. Another company that leverages feedback is Dropbox. Their "Smart Sync" feature, which lets users access files through the cloud, came from user feedback. At Wing Assistant, we implemented a variety of mechanisms to solicit user feedback. Examples include NPS polls in our software product, email surveys (we are leveraging Voiceform to allow customers to speak their feedback freely), and one-on-one calls with customers conducted by our Client Success Managers. We also ask for feedback whenever customers leave us to monitor which areas need improvement constantly. Feedback and its role in business growth Letting your teammates know what works and what doesn't is crucial for their personal and professional growth. In the fast-paced, competitive world of startups, feedback is all the more valuable. But feedback isn't just for growing companies. By embracing and using it to drive innovation, companies of all sizes can reach their goals much faster. Source: www.entrepreneur.com Image Credit: Pixabay | Mohamed Hassan
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