Historically, customer service and support leaders have focused on protecting the bottom line through efficient, cost-effective customer service interactions, designed to resolve customer issues as effortlessly as possible. But in doing so, organisations are missing an opportunity to drive tangible business outcomes, specifically by leveraging service interactions in a way that boosts customer loyalty outcomes such as retention, growth, and advocacy.
The team at Gartner identified that “the best service organisations capitalise on interactions that impact loyalty through ‘value enhancement’. “They not only resolve customer issues; they make sure customers leave an interaction more confident in their purchase decision and better able to maximise the value of their product or service.”
Furthermore, they identified the impact of value enhancement activities on customer loyalty by analysing thousands of customer responses to service interactions. Some customers reported that they weren’t just less likely to show disloyalty toward the company; they were more likely to advocate, renew and spend more.
Here are 5 ways to drive value enhancement today:
Demonstrating value to customers during service interactions can be done in many ways, but research shows these five to be particularly effective:
- Validate customer purchase decisions. Reassure the customer that their purchase decision was a smart one.
- Anticipate customer needs. Predict what features your customer may find valuable in the future based on their current needs.
- Help customers achieve a goal. Outline the product features a customer should use based on their goal for partnering with you.
- Educate customers on better uses. Rather than focusing on how customers have been using the product incorrectly, teach them how best to use it.
- Advise customers on new uses. Introduce the customer to newly introduced or untapped product features.
Value enhancement drives results:
Gartner’s analysis of thousands of service interactions showed that customers who derive value from their service interactions are far more likely to stay customers — even if they are actively considering changing providers and regardless of whether the barriers to switching are high or low.
- The average probability that the customer would stay when presented with an opportunity to switch was 82% after a value-enhancing service interaction.
- Compared to 61% after the common approach of providing low-effort problem resolution.
Notably, key loyalty metrics other than retention also improve. There is a 97% chance of positive word of mouth and 86% likelihood of increased wallet share after value-enhancing service interactions.
How can we help?
At HOED Research, we offer our clients the best Mystery Shopping solutions and tools in the market. We have a highly qualified team of mystery shoppers nationwide, who are well-trained to observe and spot the most delicate details. Each programme we undertake is tailor made to suit each clients’ needs. Finally, all results are collated in our extensive professional reporting, which is available to view online. It’s our unique ability to deliver the best results in a small amount of time, whilst not missing any of the little details that make us a desirable partner to our clients. Feel free to get in touch today with the team at HOED Research who will be happy to assist you.