ReportWire

Tag: Customer Loyalty

  • Want to Turn Customers Into Loyalists? Give Them This Reward

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    Today’s would-be restaurant patron is more selective than ever. They want to dine out, but amid economic concerns, many prioritize experience and value when they decide to spend. That makes business harder for restaurants, which are already contending with rising costs across the board. Two companies propose a solution to drive customer acquisition and retention: reward diners for their patronage.

    Behind the scenes, the ways Blackbird and inKind partner with restaurants are quite different. Blackbird provides a loyalty program and diner data to help restaurants acquire and retain customers, while inKind finances restaurants through credit it buys and then sells to users. To consumers, though, they offer the same kinds of benefits: perks that encourage them to dine out, explore, and revisit restaurants, coffee shops, and bars. Both apps have steadily grown their restaurant partner portfolios, number of cities they operate in, and user counts, proving a viable path to success for businesses that can identify both needs of suppliers and consumers and act as a funnel between them, supporting business partners and rewarding customers.

    Cash-back for cashing in

    inKind launched as a restaurant incubator in 2012, but over time founder and CEO Johann Moonesinghe and cofounder and chief risk officer Andrew Harris identified a more scalable model to pursue their passion for investing in restaurants: financing them by buying food and beverage credit which the company sells over time to inKind app users, who get 20 percent back when they cash in that credit. For instance, if you spend a $200 credit at Ocean Prime in Washington, D.C., $40 would be added to your “inKind wallet,” which you can then use on a future visit to any inKind restaurant. 

    To ensure inKind isn’t flooding its restaurant partners with diners, the company holds onto the credit it buys and sells it over time—it sends about 60 to 70 tables per month to partner restaurants. This financing model has proven beneficial: Less than half of one percent of restaurants inKind has funded closed in 2024. Since this iteration of the Austin-headquartered company was established in 2017, it has worked with 4,000 restaurants in more than 1,300 cities and gained more than three million app users and downloads. In 2023, inKind, which now counts Marcus Triest as a co-founder and senior vice president of product, hit $10.5 million in revenue, and this year, it ranked 314 on Inc.’s list of the 5,000 fastest growing private companies in America.

    inKind makes money through the sale of the restaurant credit. The company purchases credit at an even greater discount than 20 percent, so profit stems from the difference between its rate and what users pay. These rates, as well as the length of time over which inKind parses out the credit to diners, are determined through individual underwriting of each restaurant’s business and potential. The benefit to its restaurant partners is that it guarantees them a more stable flow income and greater visibility to potential customers. Plus, inKind offers an alternative to traditional business loans.

    It took some time for inKind to streamline its user rewards model. Initially, it offered a wider variety of one-off perks—like an extra $100 for diners who used the app more than five times a month—but last year streamlined its model to its 20-percent-back offering. “It was the most we could do and still make the economics work because we wanted to give consumers the most value possible,” Moonesinghe says. “The best credit cards give you 3 percent, right?” 

    inKind can only acquire and retain its own users if its restaurants are high quality, so it serves the company to take a holistic approach to helping its partners succeed. An inKind partner success team works with individual restaurants, offers best practices—with no obligation on the restaurant’s part to adopt them—and provides assistance in areas like lowering food costs and improving margins. Moonesinghe explains that identifying restaurants that will appeal to diners is key; inKind has an AI algorithm which analyzes users’ ordering histories to predict if a potential new restaurant partner will perform well. When a restaurant signs onto inKind, it joins a repertoire inKind users trust as a curated, vouched-for selection, which in turn helps generate visits to that restaurant.

    inKind has maintained a loss rate of under 1 percent on credit funded to restaurants, and app transactions drive 10 to 15 percent higher check averages. This has amounted to $150 million in dining rewards given to customers so far, and $500 million in capital inKind has infused into its restaurant partners.

    Rewards for returning customers

    Post-Covid, Ben Leventhal, co-founder of Resy and Eater, saw how restaurants struggled to connect with consumers, to communicate why they were worth diners’ time and money. So, he launched Blackbird in 2023 as a way to support the independent businesses in the way they engaged potential customers, then developed those relationships. The app is a loyalty program, helping restaurants leverage data on diners as well as appealing rewards to get people through their doors and keep them coming back. 

    Here, he saw an opportunity. Restaurants may struggle with customer acquisition and retention, but, Leventhal notes, there are few spaces in which people are more passionate about what they’re consuming. “People waiting hours in line for pancakes, thousands of people on waiting lists for burger joints, people willing to travel literally around the world for a meal that year is transcendent,” he says. “There aren’t many other settings where people have such an insatiable appetite—forgive the pun—for a product or service.” 

    The app incentivizes users to become repeat visitors of Blackbird restaurants, bars, and cafes by offering them the opportunity to earn $FLY points, which they can then use toward their future bills at Blackbird partners (1 $FLY is equivalent to about $0.01). Blackbird offers four different tiers, which offer increasing levels of rewards based on how much a user spends through the platform.

    Additionally, Blackbird works with partner restaurants to help them offer their own unique perks and experiences like secret-menu or complimentary items. When customers check in on the app at a restaurant, that restaurant sees that in real time so they can offer the free cocktail, coffee, or dessert that customer has earned.

    Blackbird serves restaurants by offering a payment method with a competitively low processing fee of two percent as well as a system through which they can attract and retain customers. Blackbird tracks and shares with restaurants data like the number of times a diner has been there, their birthday, if they’re hospitality industry members, and if they’re Blackbird Club members (the $5,000-spend tier).

    This information helps restaurants tailor their approaches to customer retention, and also strategize which tiered rewards would resonate. For instance, Bushwick brewery Kings County Brewers Collective, ran a Blackbird promotion through which anyone who purchased one draft beer got a free four-pack of cans to go, paid for by the app. “It was awesome for us to increase to-go sales, which have been down with the way the economy has been,” says taproom manager Anni Glissman says. 

    Blackbird makes its revenue by earning a few cents on each transaction. To date, Blackbird is live in its home base of New York as well as in San Francisco, Charleston, and Denver, with an imminent Los Angeles launch. It works with more than 800 restaurants, and it has raised $85 million so far from investors including a16z, Spark Capital, Coinbase Ventures, and Amex Ventures.

    While Blackbird is still a bit too new to have data tracking restaurant success over a period of years, its partners report higher than average check sizes among Blackbird users and a noticeable increase in revenue, proving the app’s rewards are successfully motivating diners.

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    Courtney Iseman

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  • Warby Parker Co-Founder, Jeff Raider, Highlights the Uphill Journey to Building Brand Loyalty

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    On a recent episode of The Big Idea from Yahoo Finance, I sat down with Jeff Raider, co-founder of Warby Parker and now co-founder and co-CEO of Mammoth Brands, which includes Harry’s Razors, Lume, and Flamingo. Raider has built some of the most recognizable consumer companies of the last decade, with a track record of creating trustworthy brands that positively impact people’s lives. Our conversation focused on one of the most critical challenges for entrepreneurs—creating brand loyalty. 

    Why loyalty matters 

    Data proves why the challenge of creating brand loyalty is so urgent. According to Bain & Company, increasing customer retention by just five percent can boost profits by as much as 95 percent. Also, a PwC report shows that 93 percent of business executives assert that building and maintaining trust improves the bottom line. These numbers underline the point that loyalty is not just a “feel good” metric but a critical driver of business value. 

    Building loyalty from the start 

    Raider’s advice to aspiring entrepreneurs is to, “Create a product that is unique, different, and better in some way, and make it easy to explain.” 

    Raider and his co-founders approached Harry’s as a subscription brand to establish recurring relationships with customers from day one. “I get to talk to customers all the time,” Raider said. “I love it, and I get to learn so much from them.” 

    That connection is what builds customer loyalty. For example, in the early days, customers said they wanted to hear the blade click into their razors. The Harry’s team listened and delivered that satisfying click. What is good for the customer is often what is good for the business, and direct feedback should inform product decisions.  

    Scaling without losing focus 

    Every entrepreneur makes mistakes along the way. Raider reflected on his “dirty unicorn” moment: moving too quickly into a major retailer without first establishing the kind of direct-to-consumer community that had guided his other brands. When Mammoth Brands was just getting started, they partnered with Walmart on a haircare line called Headquarters.  

    “We didn’t follow the playbook that we’d followed in our other brands, which is to start direct to consumer, talk to customers, learn from them, get everything perfect and then expand to retail,” Raider recalled.  

    The line wasn’t working as planned, and without a direct-to-consumer community it was harder to make the adjustments they wanted. Ultimately, they handed the brand to Walmart, whom Raider praises as a strong partner. He also expressed his goal to return later with brands that have proven success in the DTC space and are better positioned for the retail environment. 

    Raider’s advice for entrepreneurs is to build customer loyalty first, then expand into major distributors like Target and Walmart. That approach allows Mammoth Brands to manage growth while staying true to its mission of creating products people like more. 

    Beyond the product 

    Today, loyalty is not just about price and convenience. Raider described Harry’s mental health initiatives and why social impact is increasingly tied to brand affinity. In partnership with nonprofit organizations, Harry’s has helped two million men access mental health care and has donated more than $20 million dollars to support men’s mental health alongside Mammoth Brands. 

    Brand loyalty comes from trust, consistency, and a willingness to evolve with your customers. As Raider’s career shows, companies that prioritize loyalty from the beginning can build not only strong businesses, but enduring brands. 

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    Elizabeth Gore

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  • How to Leverage Authenticity to Build True Customer Loyalty | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Build trust through authenticity. That’s not a slogan or a strategy. It’s something I practice every day in my company. Why is authenticity important? Consumers today are more informed and have the means to compare brands at their fingertips, anywhere, at any time, making them less loyal than ever.

    They’re also bombarded with marketing, ads and polished brand statements at every turn. But what they really want is to connect on a human level. They want to feel seen, heard and valued.

    At our recent team retreat, we spent most of the time talking about Unreasonable Hospitality by Will Guidara — the idea that businesses should go beyond what’s expected to care more, listen more, and create moments that feel personal and real.

    Unreasonable hospitality hits home for my team because it’s all about thinking outside the customer service box and showing that you genuinely care. That’s been my company’s M.O. from the very beginning.

    Related: How to Bring Authenticity to Your Startup’s Marketing Strategy

    Experiences sell

    We’re in a time when features just aren’t enough to win people over. Especially in industries like dentistry (or fitness, or financial services or home services) where most direct competitors are offering something pretty similar, the difference is in the experience.

    I want my clients’ patients to remember how they felt more than whether they received the product or service they wanted. That personal connection will keep them coming back and drive them to refer others.

    Realness matters

    One thing I’ve come to appreciate since starting my own business is the freedom to be my authentic self. I don’t have to conform to someone else’s brand or voice or hide any part of my identity. I engage in substantive conversations with my clients every day, free from the bureaucracy and limitations of corporate marketing agencies.

    Because my clients know they’re getting the real me and not someone towing the corporate line, they also feel freer to reveal who they truly are. When that happens, we get to the heart of what they need and want right away and can get to work much faster.

    Trying to be trendy isn’t trendy

    With TikTok and Instagram ruling social media, it’s been a race for brands big and small to dominate on these platforms. Some have figured out how to make social media trends work for them, while others have failed miserably. As a marketing professional, the most important piece of advice I can offer a client is this: If something doesn’t feel like you, don’t do it.

    If a certain trend doesn’t seem like something your company would do, your audience will know. People can feel the difference between something genuine and something forced. You don’t have to jump on every new trend or copy what other brands are doing. Staying true to your brand’s values will serve your business better in the long term and help you avoid social media snafus that may be hard to recover from. No one wants to go viral for the wrong reasons.

    Related: How to Ensure Authenticity in Marketing and Build a Loyal Audience

    If you want humans to like you, be human

    While good customer service is essential, at the end of the day, it’s not enough to separate one business from another. To create loyal customers, or patients in the case of my clients, you must evoke emotions. How someone feels after they’ve completed a transaction, received a service, spoken to your receptionist on the phone or interacted with the staff in your office — that’s going to stick with them.

    That’s what they’ll remember next time they need the product or service your company provides. That’s what they’ll talk about to their friends and family members. And that’s what will bring them back.

    Build trust through authenticity. That’s not a slogan or a strategy. It’s something I practice every day in my company. Why is authenticity important? Consumers today are more informed and have the means to compare brands at their fingertips, anywhere, at any time, making them less loyal than ever.

    They’re also bombarded with marketing, ads and polished brand statements at every turn. But what they really want is to connect on a human level. They want to feel seen, heard and valued.

    At our recent team retreat, we spent most of the time talking about Unreasonable Hospitality by Will Guidara — the idea that businesses should go beyond what’s expected to care more, listen more, and create moments that feel personal and real.

    The rest of this article is locked.

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    Jackie Cullen

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  • The Best Loyalty Programs Grow Customer Businesses, Not Just Retain Them | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Too many loyalty programs operate like rusty hand-cranked machines that require immense effort for a single turn. They rest on the premise of short-term retention, a model that stalls the moment a competitor offers a slightly better deal. The future of loyalty is a frictionless flywheel that gains momentum with every joint success. Stop incentivizing purchases and start enabling program members’ success.

    When each new project a member secures is fueled by unique data, and each product innovation immediately translates into a new capability, a powerful cycle comes to life. This symbiotic relationship between a brand’s growth and the member’s pipeline transforms loyalty from a defensive cost center into an unstoppable offensive strategy.

    Related: How to Turn Your ‘Marketable Passion’ Into Income After Retirement

    Diagnosing the pain points in a loyalty program

    The first missed opportunity appears when a loyalty program begins with a rebate table rather than a team member conversation. A recent survey found that engagement among US loyalty members has dropped 10% since 2022, and loyalty has fallen twice as much, indicating that short-term incentives lose charm quickly when competitors match the offer.

    Complex rules then create administrative overhead: layers of thresholds, expiry dates and blackout periods turn what should be encouraging into burdensome work. Champions who sign up to gain momentum often discover that the rewards demand more time than they deliver value.

    Another gap emerges when programs focus solely on tracking spending. Hours invested in training, referrals or brand advocacy stay invisible, so contractors receive no acknowledgment for actions that raise their value.

    Uniform benefit packs widen the gap further because a regional remodeler aiming for local credibility and a national distributor expanding into new states need different kinds of help. Each shortcoming stems from the same underlying issue: the program safeguards current revenue instead of expanding future opportunity.

    Building an engine for mutual growth

    Progress starts with a shift in perspective: replace “How do we keep customers from leaving?” with “How do we help participants secure their next win faster and at a better margin?”. Conversations with contractors, retailers and distributors consistently reveal three accelerators: early access to product improvements, dependable lead flow and credentials that earn trust. Benefits aligned with these goals transform a points account into a business toolbox.

    For example, when a contractor can show a homeowner an exclusive product that saves labor, purchase decisions speed up and profitability rises on both sides. Data transparency must flow both ways. Dashboards give members real-time insight into tier progress and upcoming rewards while giving brands immediate feedback about which features drive incremental revenue.

    Second, benefits are personalized: a rural roofer sees different opportunities than an urban remodeling firm, so the program adjusts instead of broadcasting one generic coupon. Third, purpose sits alongside price. When a program offers community service grants or sustainability certification, members receive a story they can pass to clients, adding reputation equity that compounds over time.

    Related: How Transparency In Business Leads to Customer Growth and Loyalty

    Revealing the impact of collaboration

    The impact of a growth-focused program shows up first in financial data. Share of wallet rises among enrolled members, new product launches gain faster traction and churn recedes because leaving would erase visible support. Pipelines expand when a loyalty badge elevates credibility and leads arrive warmed by national marketing.

    Over 37% of consumers spend more money with brands they subscribe to or belong to membership programs. For example, my company’s TAMKO Edge® loyalty program not only offers cash back rewards but also digital business tools, exclusive events and training. When points fund advanced workshops, regional ad credits or software that streamlines estimates, members invest in their personal growth, rather than merely offset costs.

    Referral momentum reinforces the outcome. Team members who experience measurable gains invite peers, confident that additional network strength raises the tide for everyone. Listening sessions shift from rule confusion to conversations about shared innovation, indicating the relationship has moved from transactional to strategic.

    Resilience during market swings provides final confirmation: members who rely on shared dashboards adapt quickly to supply fluctuations because joint planning aligns inventory with forecast demand. The brand benefits from steadier demand curves and reduced emergency discounting, an advantage no one-off rebate can match.

    Tailoring programs to consumer pain points

    Before investing in a redesign, teams can run a quick audit: match every perk to a real obstacle members face. Perks without that link waste focus and budget. Contractors, for example, often need support beyond their craft, like sales training, business guidance or lead generation.

    Loyalty programs that offer these resources directly address pain points while tiered structures keep members engaged and motivated to grow. Prioritizing rewards that expand capacity, like marketing credits or extended warranties, over one-off treats builds long-term, mutually beneficial relationships. Early checks reveal gaps while costs to adjust are still low.

    Sustaining momentum once it starts

    Partnership thrives on scheduled dialogue. Setting aside time each quarter allows members to outline new hurdles while program teams share upcoming capabilities. During review sessions, owners confirm whether members choose rewards that extend reach, like advertising placements, skill certifications and longer service windows, rather than vouchers that offset routine expenses. Ongoing dialogue turns intention into concrete action by aligning future perks with real-time feedback.

    Programs that cling to rebates compete in a shrinking arena defined by price, while initiatives that equip customers to secure bigger, faster wins compete in a wider field where every success multiplies. Align every reward, insight and meeting with that reality.

    When mutual growth drives each decision, both ledgers rise together, turning loyalty into a long-term partnership that endures shifts in market, technology and customer expectations.

    Too many loyalty programs operate like rusty hand-cranked machines that require immense effort for a single turn. They rest on the premise of short-term retention, a model that stalls the moment a competitor offers a slightly better deal. The future of loyalty is a frictionless flywheel that gains momentum with every joint success. Stop incentivizing purchases and start enabling program members’ success.

    When each new project a member secures is fueled by unique data, and each product innovation immediately translates into a new capability, a powerful cycle comes to life. This symbiotic relationship between a brand’s growth and the member’s pipeline transforms loyalty from a defensive cost center into an unstoppable offensive strategy.

    Related: How to Turn Your ‘Marketable Passion’ Into Income After Retirement

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    Fallon Anawalt

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  • Why Every Entrepreneur Needs Raving Fans (and 3 Steps to Build Them) | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    What if the real reason you feel stuck in business isn’t your offer, your ads or your strategy — but the fact that you don’t yet have a community of raving fans?

    I know this firsthand. I built a multi-million-dollar company that has been recognized twice on the Inc. 5000 list of fastest-growing companies in America. And if I am honest, one of the biggest reasons we scaled wasn’t just our offers. It was the loyal community we built along the way.

    Because here’s the truth: a raving fan community does not just give you customers. It gives you defenders, promoters and ambassadors. It transforms buyers into believers. It is the difference between someone buying once and someone shouting your name, lining up at your events and bringing their friends with them.

    This is why Beyoncé can sell out stadiums back-to-back. This is why Sarah Jakes Roberts fills arenas every year with Woman Evolve. And it is why our company continues to grow — because we have intentionally built a movement of experts we call ‘Cashletes.’

    The good news? You do not need millions of followers or billions of dollars to build this. You only need to understand what I call The Community Amplifier Method™.

    This method is built on three roles every great community must have:

    1. Transparent Leaders. People follow leaders they can trust. That trust comes from honesty, not perfection.
    2. Brand Evangelists. Super-fans who spread your message and recruit others into your movement.
    3. Brand Bodyguards. Loyal defenders who stand up for you when critics or challenges appear.

    Related: Why Emotional Branding Is Out and Functional Loyalty Is In.

    Pillar 1: Transparent leadership

    When I left my $300K law firm job in 2018, I thought success would come instantly. The reality was very different. In the first few months of business, I made less than $800 total. I remember questioning and regretting my decision.

    Yet those hard months became my most powerful story. People do not connect with the perfect version of you. They connect with the real you. The you that struggled, doubted and almost gave up but didn’t.

    Sarah Jakes Roberts embodies this. She does not just share her wins. She shares the fact that she was a teen mom, that she felt unqualified and that she wrestled with insecurity. Her openness makes her community feel seen. Even Beyoncé has pulled back the curtain — through documentaries and candid moments, she lets the BeyHive see her real life, and her transparency deepens loyalty.

    Here are some tips to implement transparent leadership:

    • Share your origin story, including the early struggles.
    • Choose 2–3 “professional personal” areas of your life you are comfortable showing.
    • Tell stories of moments when you almost quit. People connect with honesty, not perfection.

    Transparency creates trust. Trust creates community.

    Pillar 2: Brand evangelist

    Once you lead with authenticity, you will attract more than customers. You will attract evangelists — people who buy into your mission so deeply they cannot help but share it.

    I will never forget the first time I attended a truly transformative event. The experience shifted me so deeply that by the following year, I invited over a dozen clients to join me. I even purchased extra tickets just to give away. No one asked me to. No one paid me to. I did it simply because the experience was that powerful.

    That is the power of evangelists. They are your free marketing army. They recruit with passion, and their word carries weight because it is trusted.

    Here are some tips to implement brand evangelists:

    • Deliver value so good people feel compelled to share it.
    • Give your community a name or identity they can proudly carry.
    • Publicly recognize and reward your loudest supporters.

    Serve people so well that they cannot help but talk about you.

    Pillar 3: Brand bodyguard

    The final pillar of The Community Amplifier Method™ is bodyguards. These are the fans who protect your brand when challenges or critics appear.

    The BeyHive is legendary for this. The moment anyone criticizes Beyoncé, her fans swarm. Their loyalty is unmatched.

    I have experienced this in my own business. After one of my events, critics tried to drag me online. Before I could respond, members of my community stepped in. They corrected the misinformation and defended me without me asking. They did it because they believed in me and in the brand.

    Here are some tips to implement brand bodyguards:

    • Define community values and invite members to live them out.
    • Deliver so consistently that members feel invested in protecting what you built.
    • Thank and acknowledge those who defend your brand. Gratitude reinforces loyalty.

    You cannot force devotion. You earn it.

    Related: 4 Steps to Building a Community of Raving Fans

    How to build your own raving fans community

    1. Share Your Story and Plant the Flag. Introduce who you are, why you are building this community and why it matters. Transparency attracts your first believers.
    2. Create a Space and Spark Conversations. Use a group platform where members connect with each other, not just with you. Your role is to spark the culture until it grows on its own.
    3. Bring People Together. Host live experiences, online or in person. Shared experiences create shared memories, and shared memories create loyalty.

    Here is the bottom line.

    You do not need millions of followers to build a raving fan base. All it takes is a small group of people who believe deeply in your story, your mission and your brand. From there, momentum multiplies.

    Every movement begins with just a handful of people who lean in, listen and believe. What starts small can grow into a community that spreads your message further than you could alone.

    You can do this!

    The sooner you start applying The Community Amplifier Method™, the sooner your business stops being a struggle and starts becoming a movement.

    What if the real reason you feel stuck in business isn’t your offer, your ads or your strategy — but the fact that you don’t yet have a community of raving fans?

    I know this firsthand. I built a multi-million-dollar company that has been recognized twice on the Inc. 5000 list of fastest-growing companies in America. And if I am honest, one of the biggest reasons we scaled wasn’t just our offers. It was the loyal community we built along the way.

    Because here’s the truth: a raving fan community does not just give you customers. It gives you defenders, promoters and ambassadors. It transforms buyers into believers. It is the difference between someone buying once and someone shouting your name, lining up at your events and bringing their friends with them.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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    Ashley Kirkwood

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  • Here’s Where Prince St. Pizza Is Opening Next | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Lawrence Longo is certain about one thing: America needs a great national pizza brand.

    Not just a chain that cranks out slices, but a name that stands for quality, heritage and the kind of flavor people will travel for. “Our goal is to be that premium slice shop in America,” he tells Restaurant Influencers host Shawn Walchef.

    That mission is at the heart of his work growing Prince St. Pizza from a single shop into a brand with locations across the country.

    The story started on a block in New York City’s SoHo neighborhood, where the original Prince St. Pizza has been drawing crowds for years. Its pepperoni square slice is an icon: crispy-edged, overflowing with curl and dripping with flavor.

    Longo was a fan before he was a partner. “I used to go in as a customer,” he says. “I loved the pizza; I loved the energy in the shop. I could feel how much it meant to people.”

    Related: He Went from Tech CEO to Dishwasher. Now, He’s Behind 320 Restaurants and $750 Million in Assets.

    That connection turned into conversations. Longo got to know the owners, learning not just about the recipes but about the pride and history behind them. “We started talking about what it could be,” he recalls. “I told them, ‘This isn’t just a slice shop. This is a brand that could mean something in every city.’”

    Eventually, that dialogue became a partnership, grounded in a shared commitment to keep the product and culture intact. Now the expansion is real. This interview took place inside a new Prince St. Pizza in Las Vegas, just steps from the Strip.

    The crowd here is a mix of locals and visitors, but the slice in their hands tastes just like it would in SoHo. “That’s the goal,” Longo says. “No matter where you are, when you bite into it, it should feel like you’re in New York.”

    The Las Vegas shop is just one of several new locations, each chosen carefully. “We don’t just go anywhere,” he explains. “We look for cities where Prince St. can fit in and still stand out. And then we build the right team to protect what makes it special.”

    For Longo, it is not simply about growing bigger. It is about creating a national pizza brand without losing the soul of the original.

    Related: His Sushi Burger Got 50 Million Views — and Launched an Entire Business

    The next great American pizza brand

    Prince St. Pizza’s footprint is getting bigger, and the momentum is real. New locations are opening in markets like Miami and Dallas. Each one matches the quality and culture of the original SoHo shop. Celebrity customers have become part of the story. Usher. Adam Sandler. Dave Portnoy. They aren’t there for photo ops. They come in because they like the pizza.

    “They try, and they come back, and they like the brand,” Longo says. Being in cities like New York, Los Angeles and Chicago means crossing paths with people who live for good food, whether they are famous or not.

    Growth also brings noise. “The bigger you get, the more haters you get,” Longo says. “You can’t listen to the noise. You want to listen to everybody, but you gotta just keep your head down, worry about yourself, do the best job you can and focus on your customers.”

    Related: Von Miller Learned About Chicken Farming in a College Class – And It Became the Inspiration for a Business That Counts Patrick Mahomes as an Investor

    That mindset is what allows Longo to keep expanding without losing the flavor and culture that made Prince St. Pizza a destination in the first place.

    Every new store is another chance to prove that a premium slice shop can scale nationally without losing what made it special.

    “Every time you open a new restaurant, you learn something new about your brand,” Longo says, “and we’re only getting better.”

    It’s the same goal he set from the start — to take Prince St. Pizza from a single shop in New York to a true national brand. And for Longo, the recipe for getting there is simple: protect the product, protect the culture and keep serving slices worth traveling for.

    Related: This Restaurant CEO Created His Own National Holiday (and Turned It Into a Business Strategy)

    About Restaurant Influencers

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    Shawn P. Walchef

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  • How to Consistently Exceed Customer Expectations | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    We’ve all heard the phrase, “underpromise and overdeliver.” Unfortunately, I often see businesses that tend to “overpromise and underdeliver,” failing to meet customers’ expectations.

    For me, it all comes down to trust. Can I rely on a company to consistently meet and exceed my expectations? As entrepreneurs, this can be a difficult question to confront. However, if you’re unsure how to respond, it may be time to reflect on your practices.

    Consistently exceeding expectations earns appreciation from others. What we truly desire is trust. In a landscape filled with wannabes trying to mimic reputable companies, the most effective strategy to differentiate yourself is not only to meet expectations but also to exceed them and then offer a little bit more.

    Related: If You Are Not Over Delivering for Your Customers, You’re Not Doing Enough

    Establish realistic expectations, then overdeliver

    Unfortunately, today’s consumers can grow accustomed to disappointment. That’s why companies that set realistic expectations are better positioned to achieve a high level of customer satisfaction. Here’s an example:

    While driving to lunch last week, a radio ad for replacement auto windshields caught my attention. Instead of touting how wonderful and fast the installers work or how great the company’s reviews and customer accolades are, the ad used a different strategy; they focused on realistic circumstances.

    “We may not always be perfect. Sometimes our employees punch in the wrong number or have trouble locating your address. At other times, we might underestimate how much time an installation will take. No, we’re not perfect, but you can rest assured that we’ll always do our best, make things right when needed and do everything possible to earn and keep your business.”

    The ad definitely caught my attention because I appreciated the company’s candor and honesty. In a world where most of us try to tune advertisements out, I’ll consider using the company the next time I need my windshield repaired or replaced.

    Why? Because my employees and I at Ditto Transcripts sometimes make mistakes. In the transcription industry, where turnaround time, accuracy and confidentiality are paramount, securing our clients’ trust and confidence remains our top priority. If we fail at any of these objectives, or if our transcripts don’t meet our 99% accuracy guarantee, I’ll do everything possible to correct the situation and satisfy the client as quickly as possible.

    The hidden ROI of overdelivery

    Most businesses strive to acquire new clients or customers, and on average, B2B companies can spend 20-50% of their annual revenue on this effort. Therefore, turning new clients into repeat customers is crucial for any company’s success.

    Given that repeat business is vital to our strategy and profitability, I personally review customer feedback and assess our service levels.

    For example, our Google reviews may include statements such as:

    • “Our transcripts were delivered early and accurately.”

    • “Their transcriptionist caught every word, even with poor audio quality.”

    • “You saved us, especially having such a tight deadline.”

    I genuinely appreciate it when our clients take the time to share positive feedback, as these reviews typically lead to repeat business. Moreover, when potential clients read favorable reviews, they are more likely to consider us for their transcription needs.

    By ensuring our clients are satisfied with our work, we can minimize or eliminate negative reviews. Always remember, taking the necessary steps to enhance customer satisfaction ultimately improves your return on investment (ROI) and bottom line.

    Related: This Is the Real Secret to Exceeding Your Customer’s Expectations

    What overdelivery looks like

    Often, it’s the small gestures that leave a lasting impression. For instance, sending a thank-you email to a new client is usually appreciated. However, a handwritten note can generate an even stronger sense of gratitude. Paying attention to these small details can lead to greater rewards.

    Consider what “overdelivery” looks like for your business. In our industry, it might include:

    1. Delivering transcripts ahead of schedule

    2. Proactively communicating with clients when issues arise

    3. Adding speaker labels or formatting without being prompted

    4. Following up with clients after delivery

    It’s important to note that “overdelivery” does not mean working for free or providing services at a significant loss. Instead, it involves exceeding client expectations through speed, accuracy, and quality. By focusing on successfully handling the small things, you may be surprised at the positive impact on your bottom line.

    Common mistakes that erode trust

    We’ve discussed many common mistakes that can erode trust and lead to revenue loss. However, a few of these mistakes are worth repeating.

    The first mistake is overcommitting while trying to secure new business. Most entrepreneurs have experienced this situation: Just as we’re nearing the finish line and sensing that our prospect is about to commit, a couple of concerns arise. In an effort to close the deal, we may overpromise without a clear plan for how to meet the customer’s expectations. Does that sound familiar?

    Overpromising simply to close a deal often results in underperformance and dissatisfied customers. To avoid this, it’s crucial to set realistic expectations from the start. Make sure to acknowledge the prospect’s concerns and assure them that you’ll develop a strategy to address their needs.

    Additionally, maintain open communication with the client to ensure their needs are consistently met. If, for any reason, you find that you cannot meet their expectations, be honest and communicate this as well.

    By establishing reasonable expectations, you and your team will have a better chance of overcoming challenges and pleasing the client. For example, saying, “Yes, Ms. Smith, I’m confident we can meet your 36-hour turnaround,” and then delivering the transcript sooner can help build trust and encourage repeat business.

    Build a culture of consistent overdelivery

    Now that you understand the importance of underpromising and overdelivering, it’s essential to instill this culture within your team. Leadership begins at the top, so ensure your employees comprehend your commitment to this approach. Focus not only on how this strategy benefits the company’s bottom line, but also on how it positively impacts individual employees.

    Start by evaluating your hiring practices. Are you looking for employees who take pride in delivering exceptional service? Acknowledge those who go “above and beyond.” Building loyalty and trust within your organization often leads to happier employees and satisfied customers.

    Create Standard Operating Procedures (SOPs) to improve quality control and internal communication. Ensure your team is clear about what they can and cannot do when handling customer issues. Proper training can enhance customer satisfaction and foster trust among your employees.

    Recognize consistent performance, not only extraordinary actions. While many appreciate acknowledgement for outstanding customer service, it’s crucial not to overlook those team members who consistently deliver excellent service. These are the employees you want to retain and incentivize.

    Empower your staff to make small decisions. Your sales team or customer service department typically interacts the most with clients and customers. Allow these employees to make minor concessions or resolve simple issues without needing to consult a manager.

    Discuss both positive and negative customer reviews and identify ways to improve in both areas. Owners and managers often focus on negative reviews, especially when they mention specific employees, shifts or departments. While addressing negative feedback is necessary, it’s equally important to recognize those who contributed to positive experiences and discuss how to implement these successful practices throughout your organization.

    Related: Trust Should Be the Foundation of Your Business — Here’s How to Earn It.

    Trust still — and always — matters

    The ability to underpromise and overdeliver is the cornerstone of many successful enterprises. The suggestions and recommendations I’ve outlined are more about common sense than complex strategies. However, every entrepreneur, including myself, needs constant reminders of their importance.

    Every time your organization delivers more than it promised, your trust factor increases significantly. Consistently overdelivering helps build a strong culture of trust, both internally and externally.

    The late Fred Smith, founder of FedEx, established a solid reputation by promising next-day and two-day package delivery. This positive reputation helped him secure a loyal customer base, even when his company’s rates were higher than those of competitors. More importantly, Mr. Smith built trust through consistent performance.

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    Ben Walker

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  • Why Focusing Only on Profit Is Holding Your Business Back | Entrepreneur

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    You need focus to build a business, but my experience has taught me that there’s also such a thing as being too single-minded.

    Financial, environmental and community goals aren’t competing objectives; they’re interconnected. This is why founders who chase revenue at the expense of value for their customers or broader social impact often experience limited growth.

    This is a bit like buying a gym membership and then letting your diet go because you’re working out. Just like healthy eating habits are part of an effective fitness plan, your mission and values are essential parts of creating a business plan that works.

    So when my brother Todd and I founded Roof Maxx as a cost-effective alternative to roof replacement, it was about more than filling a gap we saw in the market. It was about solving a problem we saw people struggling with and doing it in a way that also helped those people feel like they were changing the world for the better.

    Here’s what we learned.

    Related: 4 Ways to Engage Your Customers in Social Good — And Why It Matters

    Consumers already want to do the right thing; you just have to help them

    Call me naive, but I take a view of the world that most people are basically good — or at least, they want to be.

    They might not always put the right items in the recycling bin, but that’s not because they hate the planet. They’re usually just confused or short on time, because modern life can be hectic and overwhelming.

    That means appealing to guilt is rarely the most effective way to sell someone on a socially responsible product or service. Guilt can be a powerful emotional trigger, but it only works when someone doesn’t want to do something.

    Todd and I saw this a lot in the early days of Roof Maxx. We knew many homeowners already had some idea of how much waste roof replacement produces, so we didn’t harp on it. No one was throwing away their shingles every few years because they genuinely believed it was good for the planet. They were doing it because the rest of the industry had convinced them there was no viable alternative.

    When people already want to make a change but don’t feel like they have the option, guilt just makes them feel worse. In these cases, you need to show them the option exists, then use other strategies to win their business.

    Related: How to Market to the Increasingly Socially Conscious Customer

    Learn to position “doing good” as “getting more”

    Since most people already want to be better citizens, you don’t need to waste time trying to convince them it’s a good idea. Instead, you should spend most of your pitch showing how easy you can make it for them and how they can benefit from taking action.

    The first few times we pitched Roof Maxx to homeowners, I saw how true this was. They listened when we talked about how they could save 3.8 tons of landfill waste on average by rejuvenating their roofs with our treatment instead of replacing them, but that wasn’t really where we won them over. The vast majority came on board when we showed them our solution cost up to 80% less than a full replacement, and that it could be done in a few hours instead of taking days or weeks.

    Those experiences showed me that we didn’t have to make our customers more willing to do good in the world, because most of them already had that motivation. All we had to do was take away the obstacles they felt were standing in their way.

    Social proof is never about you; it’s about your customers

    One of the things that struck me most about the first homeowners to work with us was how proud they were. That pride didn’t just stem from the time and money they had saved. For a lot of them, it also came from feeling like they had made a difference by reducing their carbon footprint. They felt like they had joined a community that was working to improve the world around them.

    It would have been easy to edit the many testimonials we received and trim them down into concise endorsements of our company. Many brands do. But we didn’t, because we knew those testimonials weren’t just about us. They were about the kinds of people who chose us and the values that those people upheld.

    A customer who touts the quality of your product is a good advocate. But a customer who sees your product as a way to help them live a better life is a great one. The more you showcase those people, the better you look by association.

    Related: Here’s Why Values Matter So Much in Business

    People are more loyal to values than they are to brands

    One last piece of advice: Brand loyalty is a fickle thing, but values tend to exist on a deeper level. People change their cell phone plans far more often than they change their core convictions.

    That means a strong mission helps you build long-term loyalty. If you’re really committed to saving money for people, protecting the environment or community building, then you’ll always be appealing to people who value those goals. And if you can somehow find a way to do all three at once, that loyalty becomes much more difficult to lose to a competitor.

    So while it might be tempting to focus on raw profit when you’re starting out, don’t be fooled. Your mission isn’t there to distract from your margins; it’s there to set your brand apart and attract customers who already want to be on board. From there, it’s just a matter of showing them how easy it is to get involved.

    You need focus to build a business, but my experience has taught me that there’s also such a thing as being too single-minded.

    Financial, environmental and community goals aren’t competing objectives; they’re interconnected. This is why founders who chase revenue at the expense of value for their customers or broader social impact often experience limited growth.

    This is a bit like buying a gym membership and then letting your diet go because you’re working out. Just like healthy eating habits are part of an effective fitness plan, your mission and values are essential parts of creating a business plan that works.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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    Mike Feazel

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  • How to Transform Your Real Estate Business With a Customer-Centric Approach | Entrepreneur

    How to Transform Your Real Estate Business With a Customer-Centric Approach | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Success in real estate, and many other industries, is often determined by one key factor: customer service. While AI, technology and data analytics have become increasingly important, the human component remains the driving force behind long-term business success. Adopting a customer-centric approach is essential for cultivating lasting client relationships, while staying competitive.

    The power of exceptional customer service

    At the core of any successful real estate business is a commitment to exceptional customer service. Beyond just answering calls promptly or organizing smooth viewings, it’s about truly understanding clients’ deeper motivations and needs. Great agents don’t just complete transactions; they build trust. In an industry where emotions and finances are often deeply intertwined, clients want to feel understood, respected and prioritized.

    Exceptional customer service means consistently anticipating clients’ needs and acting in their best interests. When clients feel cared for and valued, they’re more likely to return for future transactions. They also become advocates who recommend your services to others. This is particularly important in an era when word-of-mouth referrals and personal recommendations carry significant weight. Studies have shown that personal referrals can be a key driver of business growth in real estate and other service industries.

    Related: Customer Centricity: What It Is, Why It Matters and How to Improve Yours

    Building long-term relationships, not just transactions

    One of the biggest mistakes real estate professionals can make is to treat each transaction as an isolated event. While closing deals quickly may seem efficient, it can lead to missed opportunities for growth and relationship-building. A customer-centric mindset means seeing each client interaction as an opportunity to establish long-term trust and rapport.

    This mindset shift transforms the relationship from a one-time transaction into a lasting partnership. For example, clients who are treated with care and attention are more likely to seek your services again when they’re ready for their next property investment. Furthermore, understanding a client’s long-term goals helps agents provide better, more tailored advice, leading to greater client satisfaction and loyalty.

    In real estate, like in any customer-focused business, building relationships means going the extra mile — whether it’s providing market insights long after a transaction has closed or offering ongoing support with property management. Clients who feel supported beyond the sale will return and refer new clients, expanding your network and creating new opportunities for success.

    Attention to detail makes all the difference

    The importance of attention to detail cannot be overstated. In real estate, small details, like remembering a client’s specific design preferences or scheduling viewings at times that suit their needs, can make all the difference. Successful agents know that every client interaction is an opportunity to demonstrate their commitment to delivering value and ensuring a seamless experience.

    In many cases, it’s the attention to detail that transforms a stressful process, like buying a home, into a positive and rewarding experience. This level of care helps differentiate customer-focused agents from their competitors and creates an emotional connection with clients, further deepening the relationship.

    The business case for a service-oriented mindset

    A customer-centric approach is a proven strategy for business growth. Research by PwC shows that 73% of consumers say customer experience is a critical factor in their purchasing decisions. This is especially true in the real estate industry, where both financial and emotional investments are significant. By prioritizing client experience, businesses differentiate themselves in the marketplace and position themselves for long-term success.

    Putting people first leads to better outcomes for everyone. By delivering exceptional service, businesses can cultivate relationships that yield repeat business, generate valuable referrals and enhance their reputation. A strong focus on customer service ultimately leads to higher client satisfaction, which directly impacts revenue growth and brand loyalty.

    Related: Good Customer Service is a Disappearing Art — Here’s How You Can Be Different

    Automation and data are becoming increasingly prevalent, yet human connection remains irreplaceable. The real estate industry, in particular, is built on relationships and trust. By focusing on exceptional customer service and prioritizing the needs of clients, professionals can build lasting partnerships that go beyond the scope of a single transaction.

    Adopting a customer-centric approach in real estate, and in any industry, means recognizing that success isn’t just about the numbers; it’s about the people behind the transactions. When clients feel cared for and valued, they will return, refer others and contribute to the long-term growth and sustainability of your business.

    By emphasizing a client-first approach, real estate and other industry professionals can create thriving businesses that deliver value and build lasting relationships, all while standing out in a competitive and tech-driven market.

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    Ugo Arinzeh

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  • Why Your Company Needs to Rethink Its Purpose to Acquire Loyal Customers — And Drive More Sales. | Entrepreneur

    Why Your Company Needs to Rethink Its Purpose to Acquire Loyal Customers — And Drive More Sales. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Becoming an entrepreneur and creating a company that creates positive change is a dream that has driven ambitious people since the beginning of the modern economy.

    But where do you start? How will you create a meaningful product or service that stands out amid the noise of today’s highly competitive and saturated marketplace? The traditional path of finding a niche and competing on quality or price is no longer enough.

    Today, if you want truly enduring and evangelical customer loyalty, you must deliver an authentic product or service that resonates with customers on an emotional level. It is important to connect them to other people, making them sincerely feel like they are part of something bigger than themselves. In short, you need to start a movement.

    For hundreds of years, social movements have been catalysts for transformative, impactful and historic change.

    Throughout history, they have served as catalysts for profound and transformative change. Dr. Martin Luther King marched on Washington with tens of thousands of supporters as part of the Civil Rights movement. Nelson Mandela’s raised fist upon being released from prison after 27 years became a powerful symbol in the movement that crushed apartheid in South Africa. The women’s suffrage movement fought for a century to get voting rights for women in America. Each one of those historic, world-changing movements was anchored in one unifying and all-encompassing force: purpose.

    Related: Looking For A Business Idea? Start With Your Purpose

    You may be thinking that those historic movements were important, but what does that have to do with business success? What does purpose have to do with business? Study after study shows that you can’t even think about starting a business in today’s economy unless it is driven by a clearly defined, tangible and unique purpose. In doing so, you and your team members will be much happier in the process, as supported by Harvard Business Review and other reporting.

    Purpose is the equivalent of “why”? The “why” encompasses a company’s contributions and impact on the world. It is the company’s reason for existing and the reason they are in business in the first place. Purpose is an enabler, a conduit and a vehicle, fueling the innovation of the world’s economy. Blackrock’s CEO, Larry Fink, says, “Without a sense of purpose, no company, either public or private, can achieve its full potential.”

    Some of the most successful companies have embraced this ethos and are fully rooted in purpose. When we look at Tesla, we may think its purpose is to sell cars, which is part of it. But its stated true purpose “is to accelerate the world’s transition to sustainable energy.” That purpose is what drove the EV car revolution — a global movement that powered EV car sales from 0.4% of the light-duty vehicle marketplace in 2004 to 15.8% in 2023. And while it sparked the EV movement, Tesla continues to be its leader. In 2023, it held 19.9% of the global EV market and is the most valuable car company in the world.

    The highly profitable clothing company Patagonia is another example of a company that started a movement based on its purpose. In 2022, the company, long known for its environmental activism, doubled down on its purpose, which is updated to “In business to save the planet.”

    But it was more than just a statement. With its purpose well defined, Patagonia founder Yvon Chouinard announced the transfer of company ownership ($3 billion in global assets and $100 million in annual profits) to a trust fund, with its dividends going to environmental advocacy organizations. With this bold support of her own movement, Chouinard declared, “Earth is our only shareholder.”

    In today’s purpose-driven economy, identifying that unifying purpose for your company — your north star — is the most critical aspect of starting any business or social enterprise. Purpose-driven companies make more money, have more engaged employees and more loyal customers and are even better at innovation and transformational change.

    Consumers are increasingly supporting businesses that stand on principle. According to Accenture, 62% of consumers want companies to take a stand on important societal issues such as sustainability, transparency and fair employment practices. The demand for authentic and purpose-driven companies is strongest among the younger generations. According to Deloitte, “millennials are driving this societal trend, with 40% of those polled believing the goal of businesses should be to ‘improve society.’” Those who ignore the intersection of business and purpose do so at their own peril, as millennials (those aged 28-43) account for $15 trillion in global purchasing power.

    Related: This CEO Says Prioritizing Purpose Over Profit Is Key to Consistent Growth and Sustainable Profit — Here’s Why.

    As a powerhouse financial company, Deloitte is probably not the first company that comes to mind in thinking of a firm driven by purpose. Yet, it is a strong proponent of the belief that exceptional organizations are led by a purpose. To amplify and advance Deloitte’s purpose, it named its first-ever chief purpose officer and established a Purpose Office. Its goals are to consistently embed purpose in the organization’s strategy and deepen the impact and positive change they are making for clients, people, and communities.

    Trust in a company has long-term benefits by creating brand loyalty and turning customers into advocates for your product. According to Edelman, “trust drives growth. When consumers trust a brand, they are more likely to purchase its products (59%) and stay loyal to and advocate for the brand (67%).”

    A company’s purpose must start at the top. Whether it’s a small business run by a sole proprietor or a major corporation led by a CEO, the leader sets the tone and must lead by example. Employees need to see the commitment to purpose reflected in the actions of leadership; otherwise, the stated purpose becomes nothing more than a catchy slogan that fails to resonate with consumers.

    Infusing purpose into your new venture is not merely a trend but a necessity to compete and thrive in the modern economy. To stand out, foster trust and create lasting connections with consumers — in other words, to build a movement — today’s companies and organizations need to find their purpose and adopt it fully until it permeates every part of their operation.

    By defining and articulating your purpose, you are laying the groundwork to start a business and, perhaps, even a movement. If you do it right, both can build value and help change the world.

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    Marc Kielburger

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  • How Customer Success Can Supercharge Your Revenue | Entrepreneur

    How Customer Success Can Supercharge Your Revenue | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Today’s business environment is tough — as such, customer success has become a crucial aspect of generating revenue. It’s no longer enough to simply acquire new customers; retaining and expanding existing customers is equally important for sustainable growth.

    In this article, we’ll explore how customer success can drive revenue and provide strategies for maximizing its impact on your bottom line.

    Related: The How-To: Delivering Great Customer Service

    Understanding customer success

    Before we dive into how customer success can propel revenue forward, let’s first define what it is. Customer success is the process of ensuring that your customers achieve their desired outcomes while using your product or service.

    It involves proactively engaging with customers, understanding their needs and providing them with the resources and support they need to be successful, which in turn increases customer loyalty.

    The importance of retention revenue

    One of the key ways that customer success management can stimulate growth is through customer retention. Retention revenue refers to the revenue generated from existing customers who continue to use your product or service. We all know that net new customer acquisition costs more, yet so many companies insist on following this playbook. However, today’s investors are paying closer attention to retention rates and churn rates than ever before.

    According to research by Bain & Company, increasing customer retention rates by just 5% can increase profits by 25% to 95%. This is because loyal customers are more likely to make repeat purchases and are also more likely to refer others to your business.

    By focusing on customer success and ensuring that your customers are achieving their desired outcomes, you can increase customer satisfaction and loyalty, leading to higher retention rates and, ultimately, more revenue. There is no more compelling reason to introduce a solid customer success strategy.

    The power of expansion revenue

    Another growth strategy is through expansion revenue. This refers to the additional revenue generated from existing customer relationships through upselling, cross-selling and renewals.

    By proactively engaging with customers and understanding their needs, you can identify opportunities for upselling and cross-selling. This not only increases revenue but also strengthens the relationship with your customers by providing them with additional value, so bake this into your customer onboarding processes.

    The key here is ensuring your customer success team is a part of the revenue team, aligning it with sales (and also marketing) and making it responsible for part of the financial targets. Not only does this spread your revenue risk, but you’re also putting the customer experience front and center. No one wants to be chased by a salesperson they haven’t spoken to in a year for a renewal — a sale is far more likely to convert if driven by a trusted advisor who’s built a relationship with the account. According to Forrester research, trust is the most important brand attribute for buyers — so lean into it.

    Related: 3 Pillars of Client Retention Every Brand Needs to Implement

    Strategies for driving revenue through customer success

    Proactive engagement and personalization

    Proactively engaging with customers and providing personalized support is crucial for growth via customer success. By regularly checking in with your customers and understanding how their business needs may be shifting (aka really knowing them), you can identify opportunities for that all-important upselling and cross-selling. The best companies, however, will plan this as part of the customer lifecycle and lifetime value. It can be usage-driven for SAAS companies and service-driven for business services; wherever an opportunity is available, you should have a natural progression plan.

    Additionally, personalized support can help customers achieve their desired outcomes, leading to higher satisfaction and retention rates. This can be achieved through personalized onboarding, regular check-ins and tailored resources and support.

    So much of content marketing is focused on bringing new customers on board, that existing ones often get overlooked. That playbook is dead. It costs more and doesn’t have great ROI — it’s time to flip the script. This is why customer success and marketing teams must work together to build more long-term client relationships and achieve negative churn.

    Utilizing customer data

    Data and the resulting insights are another powerful tool. By analyzing customer data, you can identify patterns and trends that can help you better understand your customers’ needs and behaviors. For example, by tracking customer usage data, you can identify which features are most popular and which are underutilized. This can help you tailor your upselling and cross-selling efforts to offer customers the features they need and are most likely to purchase. It will help you identify what features, additional products or services to develop based on the most desired outcomes of your customers.

    It can also help with churn. We recently implemented a Net Promoter Score process for a client who’d never done one before. When low scores came in from several customers, it was a wake-up call for the team, who had thought everything was ticking along just fine. This allowed them to react, drill into the issues and save the accounts.

    With metrics and insights in place, you become proactive instead of reactive by keeping a regular pulse on your customers. Note: You should implement a 360-view of them across one CRM to facilitate this and achieve the best results.

    Collaboration between customer success and sales teams

    As highlighted above, collaboration between customer success and sales teams is crucial for driving revenue growth and a seamless customer experience. For example, the former can provide sales teams with insights into customer must-haves and behaviors, helping them tailor their pitches.

    According to Gartner, 43% of vendor-related regret happens at the handoff between sales and implementation. Why? Many teams still work in silos, and as such, there tends to be a gap in communication and handover — allowing for buyer remorse and worry about big-ticket investment. By working cross-functionally, you can nip this in the bud and ensure a smooth transition.

    Leveraging technology

    Technology can play a significant role here as well. For example, a customer success platform can track usage data and trigger automated emails or notifications when a customer reaches a certain usage threshold, indicating an opportunity for upselling. You can also build automated workflows within your CRM, ensuring those valuable check-ins and customer satisfaction surveys aren’t missed — achieving a level of personalization at scale.

    Related: How to Measure Your Customers’ Happiness Score (and Why That Matters)

    Times are tougher than ever, and buyers are in the driving seat. Therefore, customer success is even more crucial for nailing those sales targets. You can win bigger and maximize this team’s impact on your bottom line if you, 1) tear down those team silos and start working together and 2) be proactive instead of reactive by using technology, data insights and good old-fashioned relationship building.

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    Paul Sullivan

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  • How to Use Customer Feedback to Unlock Growth and Loyalty | Entrepreneur

    How to Use Customer Feedback to Unlock Growth and Loyalty | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s time to retire the “faster horses” quote, particularly if you want to stay competitive in 2024. The quote in question has been attributed to automobile mogul Henry Ford and goes something like this: “If I had asked people what they wanted, they would have said faster horses.” In essence, it’s a brush-off to customer sentiment and desire. It’s also completely off-mark in an era where buyers are getting exactly what they want from brands — and moving on if they don’t.

    According to research from McKinsey and Company, consumers want a collaborative exchange with brands. Nearly three-quarters are asking for personalization in their interactions with companies. They’re also being selective with their splurges, making it essential for businesses to listen to their needs and respond accordingly. Brands that remain in tune with shoppers will win their loyalty. Brands that don’t? Well, they’ll be as outdated as the Model T.

    In other words, marketers and customer service professionals have to put a premium on the importance of customer feedback. Customer feedback is one of the most valuable sources of information that any organization can glean. When you have real-time feedback from your buyers, you have the inside track to pivot rapidly. You can spot new sales opportunity ideas, chances for product or service improvement, better ways to keep in touch with purchasers and so much more.

    Your feedback won’t always be rosy, of course. That’s to be expected. Negative feedback and unhappy customers are a source of wonderful data, though. They’ll tell you right away what isn’t working and what may be hurting your relationship with them. As long as you act on the feedback they give, you may be able to restore the bond between your brand and a displeased buyer.

    How can you start implementing a customer feedback management program that will allow you to quickly identify customer-based problems and possibilities? Try putting a few steps in place to gather, parse and act upon different types of customer feedback.

    Related: How to Really Hear and Use Customer Feedback

    1. Set up feedback mechanisms throughout the customer journey

    If you don’t already have a systematic customer feedback process, you owe it to your team to pull one together. You can use a variety of vehicles to elicit feedback, from point-of-purchase polls to review requests. Remember that feedback can be organic, too, as in the case of social mentions on Facebook or X. Together, the feedback you receive needs to be funneled into your company so you can begin to evaluate it.

    Your goal shouldn’t just be to take in data, though. You need to reflect upon it and react appropriately. Gartner points out that 80% of growth-focused businesses use their customer experience information proactively. Therefore, you can assume that by taking the appropriate steps to learn about what your customers want (and delivering on those desires), you’re positioning your organization to get bigger. And better.

    Make sure you understand the actual problem and avoid simply gut-reacting to feedback. When a customer says they want a faster horse, take a step back and think about the real problem, which in this case is that they want to get from point A to point B faster. In one Alida survey, a whopping 75% of consumers said they didn’t think businesses used their feedback. Accordingly, be clear when you’re doing something in response to what your customers have told you. That way, they’ll realize that you’re not letting their input collect dust.

    2. Overlay quantitative data with qualitative data

    Chances are strong that you’ll use an AI-fueled system to collect and analyze customer feedback data. AI can be highly useful in finding the most common patterns around specific products and services within your customer service feedback. It can deliver fast customer retention metrics, too. That said, you can’t solely rely on AI to tell you all the opportunities that lie ahead.

    What’s the problem with allowing AI to guide your customer feedback reactions? It isn’t always able to “read between the lines.” Even predictive AI systems can’t tell you the “why?” That’s where qualitative data comes into play. Qualitative data teases out the nuances in quantitative data. It reveals the hidden “pain points” that might not be immediately apparent in the quantitative data. You can then use both types of data to plan out your strategy.

    Not sure which kind of qualitative data mechanism would give you the most comprehensive understanding of customer experiences, preferences and perceptions across your brand, products and services? Statista shows that 44% of organizations opt for in-person focus groups. Online focus groups nabbed 39%, coming in second. Sometimes, just getting people talking can answer how to make customers more likely to return, refer and review your brand.

    Related: This Is Why You Should Never Ignore Customer Feedback

    3. Aim for continuous improvement

    Just a generation ago, businesses’ customer feedback channels were far more limited than they are today. From social media to branded apps, you now have expanded ways to gather data about your buyers. Your job, therefore, is to keep your eye on trends in the customer feedback ecosystem. Those trends will help you remain on the leading edge when it comes to amassing a wealth of feedback.

    Case in point, personalization is a growing trend in the customer feedback world. As mentioned, McKinsey research has shown a desire across the buying population for personalized brand engagements. Today, software can allow customers to receive polls, surveys, etc., that are specifically designed around their purchasing journey. For example, Amazon leverages customer feedback to personalize recommendations and enhance the shopping experience by suggesting products that align closely with user preferences and past purchases.

    If you’re not continuously improving with your customer feedback, you won’t be able to give the best possible customer experience. Take a look at how you’re collecting and using feedback currently. Are there gaps you could close, such as the lead time for feedback to be perused and contemplated by your team? Addressing those gaps can move your customer feedback system forward and put your company in a leadership position.

    Consumers are savvier than ever and have plenty of choices. In Ford’s day, they were limited in their options, allowing him to avoid the need to collect feedback. Rather than take an antiquated approach to your customers, treat them as a gold mine for the information that will take your brand from zero to 100 in no time.

    Related: Transforming Customer Feedback Into Actionable Business Outcomes: The How-To

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    Tiffany Edwards

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  • Don’t Talk to Another Customer Until You Learn This Simple Customer Service Secret | Entrepreneur

    Don’t Talk to Another Customer Until You Learn This Simple Customer Service Secret | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Here’s a simple principle of exceptional customer service that is essential to learn and take to heart: Every customer is at the center of their own world.

    The person a customer cares most about (at least when conducting business with you) is themself. They don’t care about, or at least don’t give any thought to, the challenges that an employee serving them may be navigating. They don’t care that other customers also need to be served or about the behind-the-scenes realities at your business, least of all your company’s organizational chart.

    In your customers’ day-to-day lives, when they’re not buying from or being served by you, they may be the most open-hearted, considerate, and even philanthropic people in the world. Yet, as customers, they’re almost universally focused on themselves (as well as their kids, pets, partner or their boss).

    And that’s OK — it’s the way it should be.

    A charitable way to put this? It’s not that your customers don’t care. Rather, they simply don’t realize that any extraneous (to them) elements and challenges are involved in serving them. From the viewpoint of your customers while doing business with you, they are at the center of the world.

    My suggestion is that, rather than resenting this reality, lean into it by making the customer feel that they’re at the center of your world as well. Revamp your attitude by recognizing that embracing your customers’ self-focused reality isn’t a negative; it isn’t demeaning. Instead, it’s a way to get the cash registers to ring.

    Related: What I’ve Learned Training the Top Hotel Brands in Customer Service

    Serve one customer at a time

    If you want each customer to feel like they’re at the center of your world, learn to focus your attention on just one customer at a time.

    Here’s the mantra that should be seared into the soul of every employee in an organization: The only customer who matters is the one in front of me right now. Strive to bring a laser-like focus to the customer in front of you (or on the telephone or video call) and let the rest fade into the background.

    I can’t pretend that focusing on one customer at a time will be easy. In any business, there will always be competing priorities and multiple customers clamoring for attention. Nevertheless, making a focused connection with one person, even briefly, is supremely powerful. On the front lines, this power is self-evident. In the back office, it’s also powerful, leading to less abrupt communications and correspondence. In leadership or strategic positions, it keeps you from so completely aggregating how you look at customer feedback and data that you miss the nuances of what individuals are asking of you.

    Related: 4 Surefire Ways to Be Exceptional With Your Customer Care

    Does putting the customer in the center mean moving the employee out of the center?

    The short answer is “no!” — though this is certainly one of the ways I worry that my teachings will be misapprehended and misapplied.

    The longer answer: learning to look through a customer-focused lens when you are providing customer service is entirely compatible with having a company that is focused — in a broader sense — on the needs and aspirations of its employees.

    Customer focus shouldn’t be used as a rationale for unpaid overtime, unfeeling scheduling practices, or HR trickery couched as pro-customer decision-making.

    Happily, most (though sadly, not all) pro-customer organizations are also pro-employee. Why? There are multiple reasons: the overall health of most pro-customer organizations, the empowerment employees tend to have there, and the happy phenomenon that when such companies deploy pro-customer efforts, it’s nearly inevitable that such efforts will positively affect how a company treats employee needs and aspirations as well.

    Related: 10 Reasons Why Your Startup Isn’t Getting Customers

    Eight simple ways to put the customer at the center of your world

    Here are eight simple ways to provide the kind of recognition that lets a customer know you’re putting them at the center, which I frequently stress when I’m delivering customer service training:

    1. Use your customer’s name. (Within reason! Don’t overdo this and start sounding like those irritating fill-in-the-blank salespeople.)
    2. Offer the customer your name.
    3. If a customer takes the time to ask, “How are you doing?” answer them and volley the question back to them: “I’m doing great! And how are YOU, [Jeremy]?”
    4. If you know where a customer lives (it’s quite possibly included right there on the invoice filling your screen) and you’re familiar with the area, comment on how it’s a nice or convenient area, that you used to live there, that your daughter lived there when she went to college, etc. (I wouldn’t do this, however, with a high- net-worth individual [HNWI] or celebrity—going on about how luxe their neighborhood is may make you sound a bit creepy or stalker-like.)
    5. If you know anything about a customer’s hobbies, interests, pets, kids, spouse, partner, family members, etc., check in on them.
    6. Show gratitude to the customer for being a longtime (or first-time) customer, for choosing your company, for allowing you to work on their account, and so forth.
    7. Use “spark words,” little phrases that ring in a customer’s ear with reassurance that this matters to you: both their issue and the pleasure of conversing with them. Here are four such phrases:
      • “Nice [or “Great”] to hear from you [again]!”
      • “I’m your person to resolve this for you from here on out.”
      • “If you ever need anything, here’s my direct extension.”
      • “Now that you have me working on your issue, I will get you the absolute best resolution.”
    8. To make sure customers who are on your premises never feel unrecognized, use the 10–5–3 sequence:
      • When a customer is 10 feet away (this assumes that they’re walking toward you or you toward them), acknowledge their presence with a nod and direct eye contact.
      • At five feet, smile.
      • At three feet, say “hello,” “good morning,” or “good afternoon,” assuming the customer is not otherwise engaged (e.g., on their cell phone or talking to a companion with whom they’re shopping). If they are thus involved, leave them alone!

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    Micah Solomon

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  • 5 Ways to Protect Your Company from AI Pitfalls | Entrepreneur

    5 Ways to Protect Your Company from AI Pitfalls | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Going into 2024, AI is shaping more and more aspects of our brand experience, including customer service.

    However, while AI can bring numerous benefits — from automated workflows to increased productivity among team members — there are many potential pitfalls that can harm businesses. Even tech leaders like Bill Gates, Elon Musk and Geoffrey Hinton have warned against AI technologies.

    So, what missteps do you need to avoid when harnessing AI for your business, especially for customer service? And what strategies can you leverage to do so?

    Here’s the full run-down.

    1. Develop a comprehensive understanding of AI

    To begin with, you need to spend some time developing a comprehensive understanding of AI before you think about deploying it. Many pitfalls originate from a lack of knowledge about what AI actually is and what it can — and can’t — do.

    Many businesses see AI as a magic wand to increase their efficiency effortlessly. This impression is fuelled by online hype discourse as well as the sales copy used by providers of AI tools.

    To demystify AI, you should familiarize yourself with basic terminology, the significance of training data and the different types of models and machine learning algorithms out there. This knowledge will also help you seriously assess any AI tools you might consider using in your business.

    Related: Does AI Deserve All the Hype? Here’s How You Can Actually Use AI in Your Business

    2. Resist the urge to rush ahead

    A second strategy to shield your business’ customer service from AI-related pitfalls is to resist an urge to rush.

    Over the past year, AI adoption has been rapid in countless sectors of the online sphere. It’s easy to get the feeling that your company will be left behind if you don’t adopt AI immediately.

    To a certain extent, this is true. AI is quickly becoming standard in many areas. However, it must be implemented with care, especially in external-facing areas like customer service. A botched roll-out of an AI-based customer communication tool, for instance, will do more long-term reputational damage than a longer delay in adopting it.

    3. Understand the liabilities and limitations of AI tools

    Next, you need to gain a better understanding of the weaknesses and limitations of customer-facing AI tools.

    While the capabilities of generative AI like ChatGPT, Jasper and Bard are certainly impressive, it’s important to keep in mind that their performance is based on a huge amount of training data and statistics. These models have been trained to recognize patterns and to imitate them, not to be innovative, understand nuance or solve problems through creative and interconnected thinking.

    For instance, researchers have found that ChatGPT can only solve between 40 and 75% of a set of commonsense questions.

    Similarly, generative AI models are liable to misinterpret colloquialisms, neglect cultural context and fail to consider nuances in professional jargon. All of this may be problematic depending on your niche as well as the location and demographic characteristics of your customers.

    One way to mitigate this is to employ advanced contextual reasoning AI models and models that integrate structured knowledge bases. These tend to perform much better at differentiating between literal and figurative language, for instance.

    Related: Why Are So Many Companies Afraid of Generative AI?

    4. Identify sensitive domains

    Another strategy to prevent any negative effects on customer service is to identify domains and situations that are too sensitive for AI to handle.

    For instance, AI chatbots may be able to take care of routine inquiries such as scheduling appointments or giving updates on the status of orders. But when a customer has a complex question that requires an understanding of information fragmented across different conversations, it will most likely require a human agent to handle it.

    Similarly, when an upset or agitated customer reaches out, relegating them to an AI agent can amplify these negative emotions, especially if the AI gives responses that, while correct, can easily appear uncaring or callous.

    Related: How to Turn an Upset Customer Into Your Company’s Best Advocate

    5. Invest in meticulous brand calibration

    Finally, one crucial strategy to keep your company safe while reaping the benefits of AI for customer service is to invest in brand calibration.

    Your voice is an essential element of your brand identity. The voices of successful brands — the tone and manner in which they communicate with customers — are instantly recognizable and consistent. When you implement AI, it’s crucial to ensure that it’s capable of reproducing your voice. Otherwise, your customers will notice the discrepancies, leading to brand dilution.

    As mentioned above, all AIs rely on training data. Many tools out there can use brand-specific data to calibrate and adjust the voices and modes of output.

    Conclusion

    For customer service, AI brings unprecedented opportunities for enhancement, as well as potentially disastrous pitfalls.

    By adopting the strategies above, you’ll benefit from the former without suffering the latter. With them in mind, carefully re-evaluate any tools you use already and thoroughly assess new ones before deploying them.

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    Hasan Saleem

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  • Why Amazon, Zara and H&M Are Gambling Away Their Customer Loyalty — and Paying a Very Costly Price. | Entrepreneur

    Why Amazon, Zara and H&M Are Gambling Away Their Customer Loyalty — and Paying a Very Costly Price. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Why risk obliterating customer trust for a few dollars? That’s the high-stakes gamble that’s plaguing the business landscape as companies increasingly implement return fees. In a bid to curb a burgeoning problem of product returns, businesses have inadvertently stepped into a loyalty minefield. The trend, prevalent yet contentious, warrants scrutiny through the lens of behavioral science to grasp its long-term ramifications.

    So, here’s the conundrum: businesses are hemorrhaging money on returned goods. Happy Returns, a logistics company, released a survey that found 81% of retailers have implemented some form of return fee in the past year alone. On the surface, charging return fees seems like a logical step. It’s a move aimed at deterring frivolous returns, and according to many companies, it’s working.

    Amazon, H&M, and Zara, retail giants in their own sectors, are among many that have started charging return fees and are promoting in-store returns. Amazon levies a $1 fee for shipping returns through United Parcel Service, while H&M charges $5.99 for returns sent through the U.S. Postal Service. Zara takes $3.95 off your refund for mailed returns.

    Related: Amazon Is Now Charging a Fee For Some UPS Store Returns

    On one hand, these fees are modest, but they are potent enough to disrupt the shopping experience. Consumers are savvy; they calculate the entire cost of shopping, including the hassle and expense of potential returns. Happy Returns also found that about a third of companies surveyed lost customers due to these new fees. According to their survey, more than 80% of consumers check a retailer’s return policy before making a purchase with a retailer for the first time and 55% of the consumer population surveyed have abandoned a shopping cart if the return policy wasn’t convenient.

    Blue Yonder, a supply-chain software provider, further substantiates this in a different survey, revealing that 59% of consumers are deterred from making a purchase if they’re faced with tighter return policies. So, while you might stop the bleeding in the short term by charging return fees, you’re creating a less hospitable shopping environment that drives customers away in the long term.

    The intricacies of cognitive biases in return fee decisions

    While financial metrics and logistics often dominate corporate decisions about return fees, cognitive biases play an underrated but influential role in this complex equation. Recognizing these biases not only sheds light on why businesses might opt for such fees but also offers insights into how these choices can adversely affect customer behavior.

    First, consider the cognitive bias of hyperbolic discounting. This bias explains our natural propensity to opt for immediate rewards over future benefits. When a business is dealing with the costly logistics of managing returns, the immediate relief provided by implementing a return fee can be overwhelmingly tempting. It’s a quick fix that shows immediate results, thereby satisfying shareholders and seemingly tightening up a leaky supply chain process. However, by focusing so intently on the here and now, companies often overlook the long-term consequence, which is the gradual erosion of customer loyalty.

    Next, let’s delve into the empathy gap. This cognitive bias refers to the difficulty of understanding and predicting the emotional states of ourselves and others in situations that are different from the present. When board members discuss implementing a return fee, they may find it challenging to fully comprehend the emotional toll such a fee takes on consumers. Often encapsulated in corporate bubbles, decision-makers may not grasp that for many consumers, the fee is not just an economic cost but an emotional one. It feels like a betrayal, a breaking of the tacit trust between consumer and brand.

    Finally, we must discuss the anchoring effect, where we grow used to a certain anchor and feel that it’s the normal and appropriate state. For years, many consumers have grown accustomed to a no-fee return policy, viewing it almost as a retail standard. When they’re suddenly confronted with return fees, even seemingly nominal ones, their reactions can range from surprise to betrayal. This anchoring effect — where customers have mentally pegged their shopping experience to the absence of return fees — means that the introduction of such fees creates cognitive dissonance and a negative emotional response.

    This form of customer anchoring can have significant repercussions. Not only are these customers likely to reconsider future purchases, but their overall perception of the brand may also shift negatively. They may even become vocal critics, sharing their displeasure in reviews or across social networks, thereby influencing potential customers. Brands need to recognize that they’re not just introducing a new fee; they’re deviating from a consumer expectation that has long been anchored to a no-fee experience. This pivot can create ripples that extend far beyond a single transaction, eroding hard-won customer loyalty and affecting long-term profitability.

    By taking the time to understand these cognitive biases, businesses can arm themselves with the nuanced insight necessary to make better decisions about implementing return fees. It serves as a reminder that decision-making, especially on matters that affect customer trust and long-term loyalty, should never be taken lightly or made in a cognitive vacuum.

    Related: Want to Return Clothes? At this Fast Fashion Retailer, It Will Cost You

    The case for dropping return fees

    By analogy, consider Southwest Airlines. I love flying with them. Perhaps I’m revealing my age, but I started flying when airlines didn’t charge bag checking fees for less than two checked bags. When other airlines started to charge fees, I felt a real reluctance to fly with them. I tried to take Southwest everywhere it flew, not even checking other airlines if I had a decent option with Southwest. And I’m not alone. Many travelers like myself became anchored to no bag checking fees and won’t even consider other airlines if Southwest flies to their desired destination. Sometimes they – and I – end up paying more for a Southwest ticket, but the absence of baggage fees and the added layer of trust make all the difference. Southwest stands as a vivid example of how a company can benefit by not nickel-and-diming its customers.

    So, what’s a future-forward retailer to do? In a world where brand loyalty is the golden ticket, consider zigging while others zag. Instead of aligning with the immediate benefit of return fees, invest in enhancing the overall customer experience. In doing so, you’re not just retaining a customer for one transaction; you’re retaining them for life. Understand that businesses don’t merely sell products; they sell experiences. And you’ll steal the customers pissed off at the Amazons of the world who nickel-and-dime them over return fees.

    Conclusion

    In the relentless race to maximize immediate profits, companies charging return fees risk long-term loyalty, the cornerstone of sustainable business. While the initial numbers might seem favorable, they mask an undercurrent of consumer dissatisfaction that could eventually morph into a full-fledged backlash. In a landscape punctuated by volatile consumer sentiments, the question businesses need to ask themselves is simple: Is the immediate monetary gain from charging return fees worth the irreversible damage to customer loyalty? Southwest Airlines already has its answer. What’s yours?

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    Gleb Tsipursky

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  • If You Make This Customer Mistake, Prepare to Lose Business Fast | Entrepreneur

    If You Make This Customer Mistake, Prepare to Lose Business Fast | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Maybe your customer service is tip-top in important areas like empathy, efficiency, proper use of language and so forth. Maybe you’ve engaged in effective and ongoing customer service training — whether in person or via eLearning. All of this is absolutely wonderful and very important. Still, you may have a blind spot that is driving customers away.

    In other words, Beware of The Cliff of Dissatisfaction!

    What customers expect in terms of speed is growing more emphatic and extreme every day, accelerating apace with technological, communication and competitive development. Broadband internet, ubiquitous smartphones and tablets, intuitive search functions, always-on GPS, innovative delivery options and greater competitive choice have all influenced customers’ expectations for timeliness. The old business expression, “Quality, price or speed: pick two,” no longer rings true.

    Related: Don’t Get Defensive — Avoid These 7 Phrases When Talking With an Angry Person

    The “cliff of dissatisfaction” is a metaphorical edge where customers lose patience with your company due to slow service (as defined by the customer, not by you). Before reaching the precipice, this timeframe can fluctuate depending on various factors like business type, location and time of day. It’s an inherent risk in service industries and business relationships.

    Starbucks, for instance, has a good grasp of how long their average customer will wait, from when they are acknowledged to when they receive their customized drink. The company employs strategies like interesting decor to make the wait pleasant and proactive countermeasures like baristas taking orders from the line when wait times threaten to exceed the acceptable limit. Technological solutions like their highly successful mobile app also help manage wait times. These strategies guide Starbucks’ expansion plans; when data indicates that demand and resulting wait times negatively impact customer satisfaction, a new store is opened nearby.

    Related: Want Your Business to Succeed? Use These Tips to Understand Your Customer

    Casino management is another example where waiting times are meticulously managed. Some casinos know precisely how long the average gambler will wait for a complimentary drink before getting frustrated. They utilize data analysis and staff-tracking technology like RFID tags concealed in their servers’ uniforms to improve staffing decisions and workflow.

    However, recognizing that your company has a problem can be challenging when industry standards lag behind customer expectations. For instance, in the furniture sector, a 12-week delivery time may actually be considered (at least by the merchants) to be normal. But if all businesses in your industry are too slow, it’s time for you to revolutionize your field before an innovative competitor like Uber or Amazon does.

    Letting customers control the tempo of support

    In addition to improving your speed of service — for example, by reducing hold times, cutting down on in-person waiting and returning emails more quickly — there are creative ways to match the customer’s timetable. Extending your hours is an obvious one. Allowing appointments and doing so in a way that requires minimal effort for the customer is another. And in telephone support, even when you aren’t actually answering calls any quicker, you can still answer them more conveniently by taking a page out of some of the airlines’ playbook and offering a callback option: When a customer calling in would be faced with a long hold time, give them the alternative of having their call returned at a time of the customer’s own choosing.

    Related: Use This Secret Customer Service Technique to Boost Your Customer Retention and Loyalty

    In-app support can be a step even beyond real-time

    In-app support is another way to align yourself to the timetable of your customers. If a customer is using your app and comes across a bug or something else they need to bring to your attention, in-app support, such as that offered by Zendesk, provides your customers with a “Click to Chat’ button, allowing them to chat with one of your customer support agents right there within the app. Also impressive is that this in-app solution promises to give companies a complete picture of the customer so that customers don’t feel like they’re starting over every time they interact with your company.

    Even more futuristically, certain flavors of in-app support can be, in a sense, a step beyond real-time. (Or if that sounds like a nonsensical statement, think of it as a step toward proactive assistance, or pre-sistance, so to speak.) For instance, when your company deploys Apptentive’s in-app solution, here’s what happens when a customer using your mobile app experiences a crash: A note pops up right within the app with an apology and reassurance that the issue is being fixed — before they even have to take any steps to complain.

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    Micah Solomon

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  • 9 Ways to Combat Common Vendor and Supplier Fraud Schemes | Entrepreneur

    9 Ways to Combat Common Vendor and Supplier Fraud Schemes | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Every café and restaurant entrepreneur recognizes that the thrill of the culinary scene is rivaled only by its inherent challenges. They grapple with fluctuating food trends, finicky foodies, fierce competitors, evolving regulations and the unpredictable turns of the economy. The current climate demands constant reinvention, and even the most promising cafes can be shuttered in a surprisingly short time.

    Instinct might guide you to attribute pitfalls to the outside world, but ever so often, the longevity of a hospitality business is sealed by what happens inside. A deep dive into the operations and dynamics may reveal a myriad of unseen obstacles and prospects. Employee dynamics, training regimes, supplier agreements and inventory choices significantly influence a café’s success trajectory.

    For those aspiring to cement a lasting presence in this demanding industry, continual introspection isn’t a mere suggestion — it’s a necessity. A café’s lasting prominence is intricately linked with its internal mechanics. A particular concern that might often be overlooked but eats into both the profits and reputation of cafes — prominently observed in the vibrant UAE cafe ecosystem — is the shadowy arena of supplier kickbacks.

    Related: I Was Ripped Off by Someone I Thought Was a Friend. Here’s What I Learned.

    Understanding supplier kickbacks

    Supplier kickbacks constitute covert incentives or commissions that suppliers offer to café staff or management with the intent to influence favorable business transactions. These hidden incentives can lead to questionable choices in ingredient suppliers, acceptance of subpar goods and unnecessary orders, thereby increasing waste.

    Recognizing these kickbacks as a form of veiled corruption lurking within business processes is critical. Cloaked as mundane transactions, they imperceptibly skew standard business activities, often remaining undetected until they manifest in compromised quality, inflated costs or eroded profits.

    Though occasionally masquerading as ‘business courtesies,’ the core aim of these kickbacks remains consistent: to acquire an undue advantage in commercial engagements, thereby undermining the foundational integrity essential for a successful and ethical business venture.

    When and how does it start?

    Delegating purchasing roles to seasoned staff is common for cafe proprietors. However, if inadequately compensated or insufficiently supervised, these individuals might be lured by kickback schemes. In economies where hospitality wages are low, the allure of an added income is especially tempting.

    The introduction to kickbacks can be nuanced, starting with a seemingly harmless gesture of gratitude for significant orders or steadfast business relationships. Yet, it can escalate, forming a regular pattern of monetary exchanges — fostering a dependency loop.

    Related: 4 Kinds of Fraud That Could Destroy Your Business

    Why does it happen?

    1. Personal gain: The most obvious reason is personal financial gain. Employees or managers might be lured by the prospect of extra income, especially if they believe it won’t impact the business significantly.
    2. Business relationships: Sometimes, it’s not just about money. It could be about camaraderie or maintaining a long-standing relationship, even if it’s not in the best interest of the café or restaurant.
    3. Lack of oversight: In businesses where there’s little to no oversight on procurement processes, supplier kickbacks can thrive.

    The impact on revenue and business

    1. Financial loss: Kickbacks can lead to the business overpaying for goods or services, directly affecting profitability.
    2. Compromised quality: Loyalty might shift from the cafe business to the supplier, leading to acceptance of subpar or inconsistent products, which can damage the brand’s reputation.
    3. Operational inefficiencies: With kickbacks in play, decisions are no longer made for the business’s efficiency or benefit but for personal gain. This can lead to stock discrepancies, wastage, inefficient recipe proportions and other operational inefficiencies.

    9 Ways to avoid the kickback trap

    1. Active participation: Owners should be involved, even if indirectly, in purchasing decisions, ensuring transparency and accountability.
    2. Fair wages: Paying staff a decent wage reduces their vulnerability to such schemes. It’s essential to acknowledge and commend advancements in accountability, as well as to recognize initiatives that contribute to enhancing operational efficiency and the overall profitability of the business.
    3. Supplier testimonials: Owners should seek feedback and testimonials from current and potential suppliers by consulting with fellow business owners. This provides a genuine insight into the supplier’s credibility and ethos, ensuring a more informed decision-making process.
    4. Transparent procurement processes: Implement clear and transparent procurement processes. Regularly review and audit these processes to ensure compliance.
    5. Employee training: Ensure that employees, especially those involved in procurement, understand the implications of kickbacks. Regular training sessions can help with this.
    6. Whistleblower policies: Encourage a culture where employees can report unethical practices without fear of retaliation.
    7. Regular audits: Conduct surprise checks, recipe & inventory audits, and regular financial audits. Anomalies in procurement can often be a red flag for kickbacks.
    8. Vendor agreements: Have clear agreements with suppliers that strictly prohibit such practices. Regularly review and renew these agreements.
    9. Treat staff well: Beyond just fair compensation, creating a positive and respectful work environment is essential. Recognizing and rewarding employee contributions, providing growth opportunities, and fostering a sense of belonging can deter staff from seeking external illicit incentives and bolster their loyalty to the business.

    The coffee kickback epidemic in the UAE

    The topic remains shrouded in mystery but is not entirely concealed: the trend of coffee vendors offering commissions to lesser-earning baristas. While the UAE’s plush café industry might be a pronounced casualty, it’s vital to recognize that this isn’t an incident isolated to a particular country.

    Overambitious suppliers fueled the inception of this. By wooing under-compensated baristas, they could cement their market dominance. Over time, this malpractice has not only continued but has thrived, perpetuated by the greed and financial desperation cycle.

    This practice has a secondary and perhaps more insidious effect: it stifles the professional growth and earning potential of the ‘front-of-house chefs,’ the baristas. With kickbacks in play, baristas aren’t incentivized to perform in the best interest of the cafe’s revenue nor enhance their craft or knowledge since their earnings are supplemented through under-the-table dealings.

    The onus of this issue partly lies with non-committing café owners who distance themselves from pivotal operational and purchasing decisions, allowing room for such illicit practices to thrive.

    By understanding and employing these strategies, owners can shield their businesses from internal sabotage and foster an environment of trust and sustainable growth. Understanding and addressing issues like supplier kickbacks can make the difference between a thriving business and merely surviving.

    Customers see only the final product without understanding the internal challenges and decisions that shaped it. For entrepreneurs in the café and restaurant business, it’s vital to be proactive, planning not just for today but for the future.

    All restaurant owners must consider: Are we embodying vision, resilience, dedication and innovation with each cup and dish served for years to come? And what unspoken decisions and actions willcharacterizee the legacy of our business?

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    Ryan Godinho

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  • Are Your Testimonials Helping Or Hurting? 4 Common Mistakes To Avoid | Entrepreneur

    Are Your Testimonials Helping Or Hurting? 4 Common Mistakes To Avoid | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Positive testimonials are arguably the most powerful marketing tool any business can equip. It’s no secret word of mouth can drive business growth, even if no other marketing systems are in place.

    However, the absence of great testimonials or prominent negative reviews can be detrimental. A lack of social proof or a single negative review can result in as many as 51.4% of potential prospects searching for a competitor instead of going with your offering. So your company must show off some endorsements.

    Many companies attempt to prove themselves in unethical ways to counter the consequences of having few testimonials. Startups in a rush to start earning profits are the biggest offenders. But I’m here to tell you that it’s never worth it.

    Misuse or unethical use of testimonials creeps onto product pages, websites and review platforms daily. And while short-term profits may rise, it could potentially kill your business over time as potential customers catch on.

    There are several ways testimonials can get misused and ruin brand trust. Here are 4 of the most common.

    Related: How to Get and Use Testimonials, Referrals and Reviews

    1. Irrelevant testimonials

    Testimonials must accurately represent your target audience — if your potential customers find them irrelevant, they will remain unconvinced you can solve their problem.

    An example: If you’re a growth marketing agency selling SEO campaigns for tech companies, decision-makers want to see the results you’ve delivered for those in the tech and innovation space. You don’t want to slap logos of gardening and manufacturing companies on the front page of your website.

    This disconnect in testimonials and target audience confuses buyers more than it helps.

    2. Outdated testimonials

    Take the time to revisit your most prominently portrayed testimonials. Are they recent? Do the results and processes displayed still work today? Many industries evolve quickly, and decision-makers want to know if your company has evolved with those shifts.

    Related: 5 Strategies for Getting the Most Out of a Customer Testimonial

    3. Fake testimonials

    I was once on the verge of buying a $2,000 program from a prominent digital creator promising up-to-date techniques on social media writing. I was intrigued by a new, different approach.

    While doing my research, I clicked over to the founder’s Twitter (X) account. It turns out one of his most recent tweets was a picture of him and his roommate. The interesting bit? I immediately recognized the roommate because the large testimonial on the landing page of this program was the same man.

    It turns out I was right to complete my due diligence because a conveniently located friend faked the entire testimonial — $ 2,000 saved. And the ongoing consequence for that course creator? I’ll never revisit a single product that person reveals again because any trust is gone.

    4. Anonymous testimonials

    Adjacent to fake testimonials are anonymous testimonials.

    Anonymous testimonials can’t be proven, tracked or verified in any meaningful way. So you may as well leave them off your website entirely. Any business can write nice words and say “Katie” said this about their service. But with no picture, no link to the work, and no company to research, these testimonials may as well be deleted.

    How to use testimonials effectively

    Every testimonial you decide to incorporate needs to pull the psychological levers of your potential buyers. Don’t copy and paste quotes that match your headlines. Instead, as you start gathering testimonials, focus on these three pillars to maximize their effectiveness.

    1. Have authentic testimonials

    Not only should you do the obvious and ask permission to display testimonials, but they need to be written in your current (or past) clients’ words.

    Testimonials are best believed if they come in natural language. There’s a desire to edit words, change phrases, and get the “perfect” testimonial. Often times clients are willing for you to make adjustments. But I’m here to tell you — don’t do it.

    Editing testimonials does more harm than good. It’s crucial to resist the temptation to make edits so the testimonials you display are genuinely one-of-a-kind.

    Related: Make Customer Testimonials Meaningful

    2. Highlight specific outcomes

    Just because I don’t recommend editing testimonials doesn’t mean you shouldn’t request those giving them to speak on specific outcomes. When requesting a testimonial, instead of asking someone to say “nice words,” ask what they have accomplished since working with your business.

    How many more leads are you getting each month? How much has MRR increased? How much time is your tech team saving each week? How much weight did you lose, and how fast? These are all examples of great questions to ask former clients.

    The bottom line: ask them to quantify the before and after of working with your company. This leads to specificity, believability and trust from future buyers.

    3. Display prominently

    Most of all, don’t underestimate the value of testimonials. People love safety in numbers and buy when they feel secure with your product.

    The more testimonials you can display, the better. Put them on your website, product pages, social media, and marketing materials whenever possible.

    Over and over again, remind people of the quality of your work and service. This way, when it’s time for them to buy, they’re thinking of you and your company, not your competitors.

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    Thomas Strider

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  • The Key to Building Unshakeable Customer Relationships | Entrepreneur

    The Key to Building Unshakeable Customer Relationships | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Hey entrepreneurs! You’re doing everything by the book. You’ve got your CRM software, email newsletters and 24/7 customer support, and yet, you’re not seeing that extraordinary spike in customer loyalty. Ever wondered why?

    Let me tell you: Your customers have evolved. They’re not just seeking a transaction; they’re seeking an experience — the kind of experience that transforms them from mere window shoppers to lifetime brand advocates. It’s time to move beyond basic customer service and learn to capitalize on micro-moment magic.

    Related: 3 Best Practices for Build Lasting Customer Relationships

    Defining micro-moments in the customer experience spectrum

    Micro-moments are those fleeting yet powerful instances where your customers engage with your brand spontaneously. It could be when they swipe through your Instagram story, spot your product on a friend’s feed or step into your retail location “just to browse.”

    But here’s the kicker: These seemingly trivial moments often hold the key to impactful customer relationships. During these micro-moments, you can swing the decision pendulum in your favor. Don’t let them pass you by.

    The alchemy of impactful micro-moments

    1. Leverage emotional triggers

    You’ve got split-seconds to make an impression. Use emotional cues to hit that sweet spot. The customer should feel something — the thrill of a flash sale or the comfort of knowing your product is eco-friendly and sustainably made. When you tap into the emotional resonance, you instantly make the micro-moment memorable.

    2. Dynamic personalization is your wand

    Personalization isn’t a novel concept, but let’s crank it up a notch. Dynamic personalization goes beyond just knowing the customer’s first name. It means offering product recommendations based on browsing history, nudging them with location-based offers or even altering your website layout in real-time according to user behavior. When customers feel like the universe (or your brand) is talking directly to them, magic happens.

    3. Encourage social validation

    Now, this is where the rubber meets the road. During the micro-moments, your potential customers are likely checking reviews, asking friends or even looking at how many followers you have. Make sure you have compelling social proof in place. The power of a peer recommendation is gold — leverage it.

    4. Be predictively proactive

    How about surprising your customers before they even know what they need? With machine learning algorithms, you can analyze behavior patterns and be ready to offer solutions even before the customer identifies the problem. Talk about being a psychic!

    5. Navigating the pitfalls — what not to do

    While the scope for making a lasting impression during micro-moments is astronomical, there are also pitfalls you must avoid like the plague. Overwhelming your customer with too many options, invasive marketing and slow page load times can break the spell faster than you can say “customer churn.”

    6. The ROI of investing in micro-moments

    Let’s get real — investing time and resources to orchestrate perfect micro-moments is not just a flight of fancy but a business imperative. The ROI is real, and it’s massive. Customers who have been wooed successfully through micro-moments are far more likely to become repeat customers and enthusiastic brand advocates. These people will spread the word, create user-generated content and boost your brand’s credibility.

    Related: 7 Amazing Ways to Build Long-Term Relationships With Your Customers

    The future of micro-moments: The unexplored frontier

    Don’t think for a second that the micro-moment wave has peaked. As technology advances, so do opportunities for crafting even more meaningful and immersive micro-moments. Think augmented reality, think virtual reality, think Internet of Things. The possibilities are endless, and the future looks brighter than ever for businesses willing to walk this thrilling path. Here is what you need to know.

    1. Data-driven decision-making

    You’re a visionary, but let’s bring some science to that art of yours. You can’t capitalize on micro-moments without relying on some hardcore data. Big Data and analytics tools can be your guiding star in this labyrinth of customer touchpoints. With proper analytics, you can identify when these micro-moments are most likely to occur and prepare to deliver a curated experience. Imagine knowing precisely when your customer usually browses your website or at what point in the video they’re likely to click through. Knowledge isn’t just power; it’s profit.

    2. Uninterrupted user experience

    While you’re busy orchestrating these exquisite micro-moments, don’t forget the broader setting: the overall user experience (UX). Your website or app should be so fluid and intuitive that it paves the way for these micro-moments to shine. Even minor glitches or delays can disrupt the magic. For example, if your app crashes during a “swipe up to buy” moment, you have lost a sale and a chunk of customer trust that’s tough to regain. Your UX is the stage, the lighting and the background score to your magical show — make sure it’s flawless.

    3. A seamless omnichannel strategy

    We’re living in a digital omniverse. Your customer might start their journey on Instagram, move to your website to browse and finally purchase on your mobile app. This isn’t just multi-channel, my friends; this is omnichannel — a continuous, consistent experience across all platforms. In this interconnected world, your micro-moments must transcend individual platforms and weave into a seamless narrative. For instance, a coupon code discovered during an Instagram scrolling session should be easily applicable on your main website or app. If you create this omnichannel symphony, brace yourself for standing ovations and encores.

    4. Customer-centricity is your North Star

    As we navigate the increasingly complex maze of customer engagement, remember that your true north is customer-centricity. Everything you do, every micro-moment you create, should come from a place of genuine customer empathy. This isn’t just a business tactic; it’s a philosophy. It’s about recognizing that behind every click, swipe or tap is a human being with specific needs, desires and emotions. Master the art of mirroring these sentiments in those fleeting moments, and you won’t just win customers — you’ll win hearts.

    Related: 5 Actionable Ways to Improve Your Customer Experience

    Wrapping up: Your playbook for seizing micro-moments

    By now, I hope you’re buzzing with ideas and itching to put this knowledge into action. Remember, in the grand scheme of your customer relationship ecosystem, micro-moments are the unsung heroes. Overlook them, and you’re leaving money and loyalty on the table.

    It’s time to shatter the glass ceiling of traditional customer relationship management and seize these moments of pure, unadulterated customer engagement. Because, my fellow entrepreneurs, in the digital age, the true currency is not just money; it’s engagement, relationships and trust.

    So, are you ready to master the art of the micro-moment? Your success story is just one “moment” away.

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    Chris Kille

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  • Is the Customer Always Right? How to Understand Customer-Centric Thinking to Drive Engagement | Entrepreneur

    Is the Customer Always Right? How to Understand Customer-Centric Thinking to Drive Engagement | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Imagine a world where mattresses aren’t just about sleep but are associated with beauty, stress relief and overall well-being, where millions of data points can predict when the “next big thing” is right around the corner. This is the world today, driven by ever-evolving consumer preferences, where companies strive to stay ahead by honing their customer-centric strategies.

    Achieving business success means going beyond what customers say they want and digging into why they want it. This often reveals a gap between their words and actions. Businesses tend to make products based on guesses about what customers want, both from what they say and what’s assumed. However, customers might struggle to express their needs clearly, and what they claim to prefer might not match what they’re ready to spend on. Closing this gap between talk and action is the key to genuine customer-centricity.

    For years, Treacy & Company by Cherry Bekaert has been exploring consumer centricity through work with our clients. Our recent interactions with innovators have inspired us to share our latest thinking. In this article, we will delve into the importance of uncovering deeper customer meaning and AI’s role in helping to accelerate this customer discovery process.

    Related: 10 Ways to Keep Making Your Clients Happier and Happier

    The gap in customer-centricity

    Amid the intricate landscape of consumer dynamics, a crucial gap often emerges between what customers vocalize and what they truly prioritize. Companies frequently design products based on their assumptions or direct customer feedback, which overlooks a vital reality. Customers’ explicit desires may only sometimes reflect their true preferences or willingness to purchase a product.

    Take the instance of sustainability; even though customers might stress their preference for eco-friendly options when faced with the prospect of paying more for such alternatives, a majority opt for convenience and affordability. This gap between words and actions is a pivotal point for companies to refine their customer-centric approach. It’s where they can reshape strategies to truly meet customers’ deeper motivations and bridge the divide between what’s said and what’s done.

    Unveiling the deeper meaning

    Human discussions and trends often carry a hidden depth beyond the surface. We are much more than our surface-level desires or expressed preferences. Consider the unassuming mattress — an everyday item that carries a remarkable weight of association. When thinking about mattresses, people often associate them with the “culture of sleep” (per MotivBase). In reality, customers implicitly instill mattresses with a broader meaning, encompassing beauty, stress relief and overall well-being.

    Casper, a prominent player in the mattress industry, embraced this profound insight and launched their 2022 campaign, “This is where dreams begin.” This initiative was fueled by a recognition that customers’ authentic desires often reach beyond explicit preferences or assumptions. By tapping into these true motivations, Casper aimed to establish connections that resonate with customers on a fundamental level. This strategic shift acknowledges that customers seek more than just functional products — they yearn for solutions that align with their deeper aspirations.

    There is untapped potential for companies to not only provide products but also offer holistic experiences that cater to customers’ deeper emotions, forging lasting bonds of loyalty and satisfaction.

    Related: What The Fastest-Growing Companies Have In Common

    Transforming insights into actionable strategies

    By analyzing long-form text from social/search channels and applying an anthropological lens, AI can play a pivotal role in helping uncover the hidden motivations and behaviors that shape customer preferences. From first-hand experience with our customers, we are finding that consumer behavior studies that once took ethnographers months to complete can now be done in weeks or even days.

    For example, for a leading consumer brand’s cleaning division, we recommended a sensing AI tool that could uncover opportunities to fill the R&D pipeline. By sensing millions of data points using search, social and new product data, we identified the emerging, maturing and declining trends related to the cleaning category by analyzing growth and size.

    Related: How AI Can Turbocharge Innovation and Help Destroy Your Competition

    This approach uncovered not only expected trends but also unexpected shifts. Instead of listening to a focus group of customers and sorting through reviews, the team could now better understand the true trends of the masses. These millions of consumer engagements led the team to find surprising and unfamiliar trends popping up in the category, which they were able to capitalize on by better prioritizing their R&D roadmap.

    These stories offer a fresh way to see the old saying, “The customer is always right.” It’s not just a rule anymore; it’s about exploring why customers want what they want. Customer-centricity means bridging the gap between words and actions, digging into the reasons behind surface desires and using AI to make smarter decisions. In a changing consumer landscape, those who understand this approach will be skilled at meaningful engagement and gain a strong competitive edge, shaping an environment where every customer interaction resonates deeply.

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    Francesco Fazio

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