What Is Great Customer Service, Anyway?

The tenets of great customer service apply to any kind of business  

We often hear that it’s far less expensive to retain existing customers than to attain new ones. In fact, statistics show that it costs anywhere between 4 and 10 times more to acquire a new customer than it does to keep an existing one. And research performed by Bain & Company shows that increasing customer retention rates by 5% increases profits by 25% to 95%. “In financial services, for example, a 5% increase in customer retention produces more than a 25% increase in profit,” according to the Bain study. Return customers tend to buy more from a company over time. They also refer others to your company. 

So it’s easy to see why I place a high value on delivering outstanding service to my customers. In my business, home appraisals, I deal with real estate agents, mortgage lenders, appraisers and home buyers and sellers. I consider all of them my “customers” and work hard to deliver great service to each one of them.

 Particularly with today’s social media, a business with poor customer service runs the risk of disgruntled customers ruining the company’s reputation, or worse. If even one person has a bad experience, that customer can quickly go on Facebook, Twitter or another social media platform to tell all of their friends and relatives about it. Before you know it, a poor review is the first result in a Google search and the company’s reputation is tarnished.   

In the mortgage industry, most companies use technology to enhance customer service efforts. Today there are tools that enable lenders to contact prospective customers almost immediately after an inquiry is made. Technology also allows for the collection of financial and other information from borrowers without asking them to provide reams of tax returns and bank statements.

 That’s certainly all for the best, both for consumers and the mortgage industry. But we can’t lose sight of the importance human contact plays in the mortgage or appraisal industries, or really in any business.

All of my employees are trained from day one to never lose sight of the most important asset we have, and that is our customers. Below are the guidelines I follow to ensure my company is providing excellent service to all of our customers: 

When hiring, look for certain traits in customer-facing employees. Patience, attention to detail, good listening and communication skills, a calm presence and an upbeat personality are all important qualities to look for in prospective employees, especially those that will be interacting with customers. 

Then train those employees on what great customer service means. Companies need to take the time to thoroughly train employees on the importance of superior customer service so that its principles are ingrained in each staff member. Some of the most important tenets are: 

o  Customer service is a commitment. It’s not just a marketing slogan or something employees do because they have to. It needs to be a way of life and a way of thinking. All employees must believe in the importance of delivering great customer service.

o  The customer is always right. This is an old and well-known, but important, principle. Customers can sometimes be challenging, rude and difficult to deal with. They may even be dishonest. But all employees should be trained to rise above those challenges. Remember: the customer is always right – even when they are wrong!

o  All customers should be treated equally. Each customer should receive the same great level of service, respect and attention whether they’re the biggest or the smallest customer, or the most or the least profitable. Remember: it doesn’t matter if a bad review comes from a small or large customer—it’s still a bad review! The customer’s best interest is always the first priority.

o  There are no “bad days” when it comes to customer service. Employees should understand that treating customers with patience and respect applies even if they are having a bad day. I tell my staff this pertains even if they are under the weather, a co-worker didn’t show up and they have to do his job as well as their own, or they had a run-in with their boss. 

o  Go beyond the minimum. Exceptional customer service means not just meeting customer expectations, but exceeding them. Employees should bend over backwards to make your customers happy.

o  Deliver bad news right away. A company and its employees must always be straightforward and honest with customers, even if there is bad news to deliver. In my business, that might mean telling someone a home appraisal for a mortgage has come in lower than the purchase price. It’s not easy, but customers should be notified of bad news immediately. At the same time, always try to come up with a viable solution to the problem. Customers will almost always thank you for it eventually, and reward you with more business. 

At the end of the day, we are all in business thanks to our customers. Even one poor customer experience can cause a company embarrassment, negative publicity, a loss of business or worse. By treating your customers very well, you reap the rewards of repeat business, customer referrals and increased profits. Not a bad return for simply treating your customers well! 

To learn more about Nadlan Valuation, please visit https://nadlanvaluation.com/ or contact me at [email protected].

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