On the latest edition of The Small Business Show, customer experience expert and bestselling author Shep Hyken joins us to discuss critical findings from his 2024 State of the Customer Service study. Together, we will explore the impact of improving survey responses and the importance of using customer feedback effectively.
During today’s discussion, Hyken exposes the deeper layers of customer service.
According to one of Hyken’s studies, a startling revelation is the concept of the “dangerous customer.” These are customers who seem content but don’t return. Hyken explains that simple satisfaction is no longer enough to ensure loyalty, as even satisfied customers may leave for competitors if their experience isn’t memorable/exceptional.
In a recent study conducted by Vanderbilt University, 25-40% of satisfied customers don’t return. Therefore, Hyken stresses the need for businesses to create an experience that makes customers eager to return—something as simple as being knowledgeable, friendly, and helpful can make all the difference.
Another vital topic Hyken discusses is the power of customer feedback. Based on his study, Hyken warns that many businesses ask for feedback but fail to act on it, leading to customer frustration. He also highlights how companies can improve survey response rates by keeping surveys brief and following up on the feedback received. With only 14% of customers completing surveys, businesses must be mindful of over-surveying and ensure the feedback process is meaningful.
Moreover, Hyken shares that 67% of customers won’t complete a survey if it’s too long. To counteract this, companies must not only ask the right questions but also confirm their actions to demonstrate that customer feedback is valued and acted upon.
Nevertheless, Hyken accentuates the importance of consistently asking whether the current customer interaction will ensure repeat business.
"Customer loyalty isn’t about a lifetime commitment—it’s about the next time. If you focus on making sure a customer comes back next time, you’ll have the opportunity for them to return for a lifetime." - Shep Hyken.The Small Business Show