Picture this: You’re at the counter of an airline after one cancelled flight and another looming. You’ve finally reached the front of the line only to be met with an unsmiling agent and a “we’ll try to get you out tomorrow” before being directed to another long line. You vow, “I’m never flying with them again.”
We’ve all had those customer service experiences that drive us to near meltdowns and muttered lifetime boycotts of companies. These interactions can be a make or break for companies. The words and tone that employees use can boost customer loyalty and reduce churn, or send loyal customers packing.
So, how can companies turn those make-or-break moments into loyalty-building opportunities? How does communication help or harm?
Here are five ways to build a better business by transforming customer service interactions.
Key Takeaways for Customer Service Success:
Customer Loyalty Through Friendly Service: Friendliness is a powerful loyalty builder. It is when you feel “understood.” Personal, human interactions are what makes customers feel comfortable — and according to Salesforce’s sixth annual “State of the Connected Consumer” report in 2023, 75% of consumers say that excellent customer service is what makes them stay loyal to a brand.
The Value of Empathy and Personalization: In today's customer-centric market, empathy is no longer optional. Salesforce research shows that while consumers expect companies to demonstrate empathy, 56% of people feel that they’re often treated as numbers rather than individuals. Tailoring interactions to show compassion can have a profound impact on loyalty.
Importance of Positive Experiences: Language shapes how customers perceive their interactions — so avoiding negative, angry, or disrespectful language in customer communications is important. According to HubSpot, 93% of customers are more likely to return to companies that prioritize excellent service. By focusing on building positive, memorable interactions – established through how employees communicate – companies can lock in loyalty.
Risk of Poor Service: On the flip side, Microsoft has found that 58% of U.S. consumers have cut ties with a brand after bad customer service experiences. Similarly, American Express found that one-third of Americans would consider switching brands after just one negative encounter.
Empowering Employees for Better Service: Providing employees with training and freedom to resolve issues can greatly improve customer satisfaction, according to PwC.com. Empowered employees are more likely to deliver quick, personalized solutions, which creates a more positive experience and reinforces customer loyalty.
A consistently empathetic approach to customer service can transform routine interactions into loyalty-building moments. As the expectations for personalization and positive experiences rise, companies that embrace these values — and AI tools that can assist with it — are likely to see increased retention, repeat business, and a positive brand reputation.
How does your organization approach customer service? Have you seen a connection between empathy in communication and customer loyalty?
Amanda Nurse is the editorial and operations coordinator at Alphy.
Reflect AI by Alphy is an AI communication compliance solution that detects and flags language that is harmful, unlawful, and unethical in digital communication. Alphy was founded to reduce the risk of litigation from harmful and discriminatory communication while helping employees communicate more effectively. For more information: see www.alphyco.com