We have all heard that the AV industry is a “people business.” However, many industry professionals treat the relationship aspect of business as a given and turn too quickly to focus on the technologies. In the past, “leapfrogging” over relationships toward technologies worked because the technologies were considered “shiny.”
However, this is no longer the case. Research shows that products alone are no longer the primary reason people buy from a particular company or person. All else being equal, this begs the question: Why does someone buy from a given company?
Here’s a teaser: Research shows that the most effective path to differentiation and profitability can be traced to the creation and nurturing of solid relationships. Rather than assuming we know what this entails, let’s examine what key elements are at play.
Business Relationships: A Macro Perspective
At the macro level, good business relationships are defined by mutual respect, trust and understanding. These are built on consistent communication, personalized service and consistently meeting or exceeding their needs. Key elements include making customers feel valued and heard, promptly addressing issues and creating a positive experience that encourages repeat business and loyalty.
The Micro Perspective
Now, let’s get a bit micro. Every customer interaction impacts their expectations. According to the Zendesk Customer Experience Trends Report, customers have higher personalized expectations now than they did even a year ago. Today, 70% of buying decisions are based on the experiences of how customers feel they were treated.
Creating strong relationships is the foundation for providing great experiences and it does not require perfection. The good news is that over 74% of customers say they will forgive a company for its mistakes if the overall relationship is strong.
Characteristics of a Good Customer Relationship
- Trust and transparency: Build trust by being honest and upfront with customers.
- Active listening, empathy and understanding: Focus on customer needs, pain points and feedback, making them feel genuinely understood.
- Personalized and consistent communication: Tailor interactions based on their history and preferences. This shows you value them as individuals.
- Proactive engagement, problem-solving and accountability: Proactively engage and address issues promptly. Focus on a collaborative approach to turn a potentially bad situation into a positive one.
- Quick responses: Show respect and demonstrate that you value their time.
- Exceed expectations: Consistently go beyond your products and provide added services, valuable knowledge, etc.
- Customer feedback: Use it to improve your products, services and the overall customer experience.
- Appreciation: Reward loyal customers through loyalty programs or special offers. Even simple thank-you notes indicate that their dedication is valued.
How to Improve Customer Relationships
As a company, you should create a customer-centric culture from the top down and put the customer at the center of the business.
Moreover, companies should invest in a fulfilling workplace, as happy workers equate to satisfied customers. In fact, research shows that companies with engaged employees outperform their competition by 147%!
Finally, prioritize consistency as customers want consistent messaging and communication.
Benefits of Positive Customer Relations
As you establish positive customer relations, you will see the following benefits:
- Higher customer retention
- Increased customer loyalty
- Better business reputation and brand credibility
- Improved employee morale and attitude
- Increased competitive advantage
Final Thoughts
Although all of the above is certainly important, the top reason customers leave vendors is due to underappreciation. Research shows that more than 80% of commercial customers are more likely to do business with a company if it offers personalized experiences. Statistics give us irrefutable data to ponder, but just think about it at its core: It really is a people business, and we need to act accordingly.
Alan C. Brawn, CTS, DSCE, DSDE, DSNE, DCME, DSSP, ISF-C, is principal of Brawn Consulting.
