There's an unbelievable business secret that can turn unhappy customers into lead-generating machines! It's called the Service Recovery Paradox, and today I'm going to explain how you can use it to increase customer loyalty, boost profits up to 95%, and grow your credit repair business faster!
Credit Repair business owners sometimes focus so much on finding new leads that they forget about servicing the customers they already have.
As your pool of customers begins to grow, priorities have to change because current customers are actually more valuable than new customers.
Your current customers provide the revenue, feedback, and testimonials that drive the growth of your business. It costs 5 times more to find a new customer than to keep a current one, and when resources are limited, understanding who to prioritize is the key to success.
But I'll let you in on a secret. There's a powerful tool that can help you prioritize both!
The Service Recovery Paradox can help you keep your current customers happy and turn them into lead-generation machines!
The Service Recovery Paradox is a proven fact that states customers who are unhappy with a service will become even more loyal to a business if that business responds with fast and effective customer service.
The SRP suggests that a bad customer experience, whether it's your fault, the customer's fault, or no one's fault, can be turned into a good customer experience. And that can turn your upset customer into your best customer!
In fact, research shows that upset customers end up being more satisfied than those who had no bad experiences at all! Which is crazy, but it's true!
According to the International Journal of Quality & Reliability Management, customers that didn't experience a problem reported a satisfaction level of 73.3 out of 100. But customers who experienced problems and had their problems resolved reported a satisfaction level increase to 81.7 out of 100.
The SRP means if a customer has a problem and you make an effort to respond to it quickly and effectively, that customer will be more loyal, satisfied, and more likely to recommend your business to others.
SO HOW DOES THIS RELATE TO US?
When a customer's expectations aren't met, they're unhappy, even if those expectations are totally unrealistic. In Credit Repair, the stakes are high, emotions are higher, and there's usually a ticking clock. Someone is trying to get a house, a car, or a job. And in those situations, keeping customers calm is difficult, and keeping them happy can seem impossible.
If you're unable to repair a customer's credit, or you're unable to do it as fast as they want, they may take it personally. They may get upset and complain. This should be expected and welcomed. You want to treat that customer with empathy and respect and treat their complaints like opportunities because they are!
HERE'S THE THING TO REMEMBER…
Be glad your customer complained. A Thinkjar study on Customer Experience found that only 1 in 26 people actually tell businesses about their negative experiences. Most unhappy customers just disappear.
Out of all the customers lost because of bad experiences, 85% were preventable.
And studies have shown that preventing 5% of your customers from leaving can increase your profits by 25-95%.
HERE'S WHY THIS IS IMPORTANT…
Each customer problem is an opportunity to show your commitment to service and to further improve your Credit Repair business.
While some customer complaints are ridiculous, like "Why didn't you raise my Credit Score 300 points overnight?!"
Many complaints do have a bit of truth to them. If a customer is upset with your credit repair service, instead of being defensive, stop to consider why they're complaining. Did you establish realistic expectations? Who is responsible for not meeting those expectations? What do you have to do to keep them as a customer?
HERE'S WHAT YOU NEED TO KNOW…
The key to the SRP is to respond to unhappy customers quickly and effectively. And when it comes to timing, customers are impatient.
A HubSpot Research Poll found that 90% of customers rate an "immediate" response as essential or very important when they have a customer service question, and 60% considered "immediate" to be 10 minutes or less.
Providing this type of "immediate" response is not always possible for people just starting in business. Still, this should give you an idea of how important it is to establish customer expectations.
If you want to respond quickly and provide great service but don't have a staff or a ton of free time, there are solutions. You can set up a specific phone number or email for Customer Service questions. When those channels are contacted, respond immediately by asking the customer to schedule a service appointment. This will give the customer the immediate response they want and buys you some time during your busy schedule.
When you connect with the customer, you need to communicate effectively. You have to ask them questions, acknowledge their issue, provide an explanation, and offer a solution or a refund if necessary.
Go the extra mile. Offer discounts or other perks to the customer. Give them a month of free credit repair service or a bonus service. This will build trust and show the customer that you're committed to their satisfaction.
Make sure to be sincere, and be willing to apologize, even if you know the customer is the problem. Thank them for their feedback, and provide them with a way to contact you in the future if they have any additional issues.
At this point, they will likely commit to remaining with your service, and you can end the interaction by thanking them for being a valued customer.
HERE'S MY FINAL POINT…
Each negative customer experience you resolve improves your ability to handle issues faster and more effectively. By understanding the Service Recovery Paradox, you can create loyal customers, lower overall costs, fix legitimate problems, improve your reputation, gain an edge against your competition, boost profits, and grow your credit repair business!
I'll end by saying…
If you don't already have a Credit Repair Cloud account, check it out. It's the software that most Credit Repair businesses in America run on. Just sign up for a 30-Day Free Trial at CreditRepairCloud.com/freetrial
And if you'd like to change lives and grow your own credit repair business, check out our Credit Hero Challenge!
It's an amazing program, and we've got another challenge starting in a few days, so grab your spot right now at CreditHeroChallenge.com!
Your Personal Information is the key to a Clean Credit Report.
Keep Changing Lives!