In a digital world full of so many options, creating customer loyalty can be a challenge. Consumers are more aware than ever of the abundance of choices, and with so much happening online these days, this problem has spread across all industries and businesses of all sizes. These days, customer retention requires a new and improved understanding of the customer relationship, especially in the beauty sector.
Unhappy customers tell 36% more people about their experience than satisfied ones do. U.S. businesses lose an average of $62 billion a year to poor customer experiences. To stay ahead of these stats, leading brands like Drybar and Skin Laundry make sure revenue never walks out the door in the first place. They use comprehensive customer feedback methods to stay aware of what customers want out of the experience and to give it to them faster than the competition. Customer feedback in real time is quickly becoming the standard for beauty businesses, and the sooner you bolster your efforts in that area, the better.
Here are 4 things you’ll need to do to get started:
1. Automate.
When you’re focused on growth and you have multiple locations, it’s difficult to collect accurate feedback from every customer. Even if you successfully gather feedback onsite or with manual surveys, the pressure of replying in the presence of staff or immediately after service can lead to skewed results. With an automated system, you can alleviate pressure and find the right timing in which to survey customers. Not only will you get more accurate data, but you free up resources and people to focus on operations and actually following up with the feedback.
2. Aggregate.
Compiling the data from your feedback efforts will allow you to see how your customer base as a whole feels about your brand. This is the premise of the Net Promoter System, a research-driven invention of Bain & Company that has become the golden standard of customer engagement. By comparing the numbers of delighted customers with those of passive and dissatisfied customers, you can get a good idea of the overall relationship you have with your customer base. These numbers can give insight as to how likely you are to retain customers, get referrals, and increase profitability.
3. Act.
This one seems simple, but it’s important. Analyze the feedback, find patterns or instances where a specific interaction with a customer could be improved, and act on it. Demonstrate to your customer base that you’re listening and following up in a timely manner. This often turns dissatisfied customers into raving fans, increase referrals, and ultimately improve retention.
4. Amplify.
Share this information with your employees and customers in a big way. Employees who are doing a good job should be recognized. This will improve morale and future interactions with customers. Use areas of improvement to assist in training. Transparency about your feedback efforts will also improve your customers’ perception of you and let them know you care.
Listen360’s software compiles customer feedback in real-time and in one place, so you can address complaints quickly, keep existing customers happy, and win more referrals. To learn more, click here.
Booker, a subsidiary of MINDBODY, develops a cloud-based platform that helps spas and salons manage booking, scheduling, payments, and customer relationships.