6 Tips for Managing Customer Relationships (With Benefits)

By Indeed Editorial Team

Updated December 24, 2022

Published November 30, 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Customers are crucial to all businesses, as their continued patronage is vital for a company's profitability. People commonly choose to patronize businesses that provide them with a positive customer experience. Managing customer relationships is essential to provide a great experience to customers and ensuring their continuous patronage. In this article, we discuss some tips to improve your customer relationship, identify the vital skills that can help you maintain these relationships, and outline the benefits of a good customer relationship.

Tips for managing customer relationships

Managing customer relationships is essential for a business, and here are some tips to achieve it:

Improve communications with your customers

Improving communications with customers is essential if you're providing a service or selling a product to them. Communicating with customers can help them feel more valuable, leading to a deeper interest in your services. You can improve your customer communication by interacting with them using various social media platforms. Regardless of the platform, ensure that, as a customer service representative, you remain warm with customers and make them comfortable.

Ask for feedback regularly

People commonly prefer to patronize businesses that acknowledge their customers by requesting feedback. Ensure that your feedback results in corrections and updates to the issues a customer raises. This is because you can only attract customers if they know that the feedbacks lead to positive reactions.

There are various platforms you can leverage to receive feedback from customers. These include links to a survey form on your website or setting up an active email address for this purpose. You can also individually chat with and receive feedback from customers, either physically or virtually.

Address complaints and negative feedback

Addressing customer complaints is vital to protecting the brand image, improving customers' confidence, and retaining their patronage. An essential aspect of responding to complaints is a fast response, as prompt action can turn a bad customer experience into a positive one. As the team lead, you can train your team members on how best to handle customer disputes and complaints to ensure that the customer service department functions optimally. Various businesses also include complaint-handling methods and procedures as part of their internal policy.

Related: Tips on How to Deal with An Angry Customer

Reward loyal customers

Rewarding loyal customers is a great way to maintain your customer relationships. It's an incentive to attract new customers and a way to appreciate your long-term customers for their sustained partnerships. Long-term customers tend to spend more in businesses, so the amount you invest in your loyalty program can considerably improve your revenue in return. Your loyalty program can provide long-term customers with free limited-time coupons, enter them into raffle games, or provide them with discounted rates. You can also start referral programs to reward customers for every new customer they refer to your services.

Provide impeccable services

An essential aspect of managing your relationship with customers is providing excellent products and services to your customers. People naturally return to places where they get excellent value for their money, despite high prices. They also refer their friends and colleagues to these places. A qualified team, quality control measures, and using industry-standard equipment and tools are great ways to ensure excellent products and services.

Personalize the customer experience

Personalizing the experience for each customer is another way to improve customer relationships. You can personalize a customer's experience by modifying your service based on your knowledge of the customer. This ensures that the customer gets products and recommendations that fit their personality.

For example, if the business is online, you can adapt it to deliver dynamic content depending on user preferences. You can also leverage geolocation technology to personalize a customer's experience based on their location. Leveraging AI to recommend services to customers based on their past purchases is also a good idea to personalize the customer experience.

Essential skills that can help you improve customer relationships

Here are some skills that can improve the quality of a customer's experience and enhance customer relationships:

Communication skills

Communication skills are necessary for developing and maintaining excellent customer relationships. Generally, effective communication helps you understand customer complaints and grievances, which allows you to address them quickly. This skill also helps explain important information to your clients, including how to use a particular product or what they can expect from a specific service, ensuring clarity and customer satisfaction.

Communication also extends to written and non-verbal communication. For instance, excellent writing skills can help you develop helpful interactive posts on social media or for newsletters. You can develop your communication skills through continuous practice and learning.

Related: Customer Service Skills: Definition and Examples

Product knowledge

Comprehensive knowledge of products or services is essential for improving customer relationships. Excellent product knowledge helps address various comments in person via chat or through calls. For example, extensive product knowledge makes it easy to advise customers regarding suitable products for their needs. This increases customer satisfaction and confidence in the brand. As a team lead, you can hold training sessions for your team members to help them develop in-depth knowledge of the products or services. This training is critical for staff members that constantly interact with customers.

Interpersonal skills

Good interpersonal skills can help you interact with customers and address their demands positively. For example, customers can be angry regarding an unpleasant experience, and it could be your responsibility to calm them down and calmly address their issues. If you possess good interpersonal skills, you'll be able to politely communicate the solution to their problem and help resolve the issue without making the experience unpleasant. Generally, this skill can also help attract new customers, especially on social media platforms, by developing exciting pieces to attract internet users.

Another vital, relevant interpersonal skill is empathy, as it helps understand how the customer feels and how to react appropriately. You can develop interpersonal skills through constant practice with friends or family.

Related: Interpersonal Skills: Definitions and Examples

Industry knowledge

A crucial aspect of improving customer relationships is ensuring the excellence of your products or services. You can ensure this by possessing sufficient industry knowledge in the field of your services. Industry knowledge involves understanding the core aspects of the industry and relevant business processes. Obtain a relevant bachelor's degree or even a postgraduate degree if it's necessary. You can also pursue certifications to improve your proficiency in your field. Ensure you also obtain any licences needed for your practice and remain updated regarding the industry's regulatory environment, standards, procedures, and behaviours.

Problem-solving skills

These refer to skills that enable you to identify issues and develop a working plan to solve them quickly. Problem-solving skills are vital for improving customer experience, as customers commonly have various complaints regarding product or service malfunction. As a representative of the company, it is your duty to identify the issues and address them immediately using your problem-solving skills. Relevant problem-solving skills include active listening, research, analytical, creativity, and decision-making skills.

Benefits of excellent customer relationships

Here are some reasons to ensure excellent customer relationships:

Customer retention

An important objective in business is developing an excellent customer retention strategy because of its numerous benefits. For instance, higher customer retention can often double or triple a business' growth rate. Excellent customer relationship management can help companies achieve this, as it commonly urges a customer to return for future services. You can increase customer retention by following up with the customer after selling your product or rendering a service, promptly addressing customer complaints, and incorporating feedback opportunities.

Increased sales

Excellent customer relationships can increase sales for the business because a positive experience makes it a previous customer's first option in future. Businesses tend to make more revenue from existing customers than from new customers for this reason. Customers who enjoy your customer experience also have fewer reservations about patronizing a business, even if the prices are relatively high. This is because customers commonly prioritize the overall customer experience over costs.

Acquisition of new customers

A customer who enjoys a positive customer experience is likely to recommend you to others. This creates a positive promotion, which can help you attract new customers. Satisfied customers are also more likely to leave positive reviews about your products or services online, attracting new customers. People always look to other people's reviews before deciding whom to patronize, which can benefit a company.

Related: Essential Differences Between Sales vs. Business Development

Improves business image

Customers can positively or negatively affect public perception of products because of their social media presence and influence. This means that making good impressions on customers can positively impact the public perception of a business. Excellent customer relationships also ensure customers direct their complaints to you rather than making poor comments to the public. This gives you adequate time to improve the service, remedy the issue, and preserve the business's public image.

Helps you gain insights into customer needs

Having a strong relationship with your customers can help you understand what your customers want. They can reveal their preferences, goals, and desires via functional feedback mechanisms. This can help you plan your marketing strategy around what your customers want, leading to sustained patronage. You can also gain insights into their needs by using various survey tools and organizing frequent question-and-answer sessions.

Related: Guide: Developing a Customer Relationship (And Importance)

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