How to Never Lose a Customer Again and Increase Your Profits: Customer Service!

Hey, credit heroes. There is an unbelievable business secret that can turn unhappy customers into lead generating machines. It's called the Service Recovery Paradox. And today I'm going to explain how you can use it to increase customer loyalty, to boost profits up to 95% and grow your credit repair business even faster. So you better stick around. My name is Daniel Rosen and welcome to Credit Repair Business Secrets. Credit Repair, where business owners sometimes focus so much on finding new leads that they forget about servicing the customers that they already have. As your pool of customers begins to grow, priorities have to change because current customers are actually more valuable than new customers. Here's why. Your current customers provide the revenue, feedback and testimonials that drive the growth of your business. It costs five times more to find a new customer than to keep a current one. And when resources are limited, understanding who to prioritize is the key to success. But I'll let you in on a secret. There's a powerful tool that can help you to prioritize both. The Service Recovery Paradox can help you to keep your current customers happy and turn them into lead generating machines. The Service Recovery Paradox is a proven fact that that states customers who are unhappy with a service will become even more loyal to a business if the business responds with fast and effective customer service. The SRP suggests that a bad customer experience, whether it's your fault, the customer's fault, or no one's fault, it can be turned into a good customer experience. And that can turn your upset customer into your best customer. In fact, research shows that upset customers end up becoming more satisfied than those who had no bad experience at all. Which is crazy, but it's true. According to the International Journal of Quality and Reliability Management, customers that didn't experience a problem reported a satisfaction level of 73.3 out of 100. But customers who experience problems and had their problems resolved reported a satisfaction level increase to 81.7 out of 100. The SRP simply means that if a customer has a problem and you make an effort to respond to it quickly and effectively, that customer will become more loyal, satisfied, and more likely to recommend your business to others. So how does this relate to us? When a customer's expectations aren't met, they're unhappy, even if those expectations are totally unrealistic. In credit repair, the stakes are high, emotions are higher, and there's usually a ticking clock. Someone's trying to get a house, a car, or a job. And in those situations, keeping customers calm is difficult and keeping them happy can seem impossible. If you're unable to repair a customer's credit or you're unable to do it as fast as they want, they may take it personally and they may get upset and complain and this should be expected and welcomed. You want to treat that customer with empathy and respect and treat their complaints like opportunities because they are. Here's the thing to remember be glad that your customer complained. A Think Jar study on customer service found that only 1 in 26 people actually tell businesses about their negative experience. See most unhappy customers just disappear. Out of all the customers lost because of bad experiences, 85% were preventable. And studies have shown that preventing 5% of your customers from leaving can actually increase your profits by 25 to 95%. Here's why this is important. Each customer problem is an opportunity to show your commitment to service and to further improve your credit repair business. While some customer complaints are ridiculous, like why didn't you raise my credit score 300 points overnight? Many complaints do have a bit of truth to them. If a customer is upset with your credit repair service, instead of being defensive, stop for a moment and consider why they're complaining. Did you establish realistic expectations? Who is responsible for not meeting those expectations and what do you have to do to keep them as a customer? Here's what you need to know. The key to the SRP is to respond to unhappy customers quickly and effectively. And when it comes to timing, customers are impatient. A HubSpot Research poll found that 90% of customers rate an immediate response as essential or very important when they have a customer service question, and 60% considered immediate to be 10 minutes or less. Providing this type of immediate response is not always possible for people just starting in business. Still, this should give you an idea of just how important it is to establish customer expectations. If you want to respond quickly and provide great service but you don't have a staff or a ton of free time, there are solutions. You can set up a specific phone number or email account for customer service questions and when those channels are contacted, respond immediately by asking the customer to schedule a service appointment. This will give the customer the immediate response that they want and advise you some time during your busy schedule. When you connect with your customer, you need to communicate effectively. You have to ask them questions. You have to acknowledge their issue and provide an explanation and offer a solution or a refund if necessary. Go the extra mile. Offer discounts or other perks to the customer. Give them a free month of credit repair service or a bonus service. This will build trust and show the customer that you are committed to their satisfaction make sure to be sincere and to be willing to apologize even if you know the customer is the problem. Then thank them for their feedback and provide them with a way to contact you in the future if they have any additional issues. At this point, they'll likely commit to remaining with your service and you can end the interaction by thanking them for being a valued customer. Here's my final point. Each negative customer experience that you resolve improves your ability to handle issues faster and more effectively. By understanding the service recovery paradox, you can create loyal customers, lower overall costs, fix legitimate problems, improve your reputation, gain an edge against your competition, boost profits, and grow your credit repair business even faster. And I'll end by saying, if you don't already have a credit repair cloud account, check it out. It's the software that most credit repair businesses in America run on. Just sign up for a 30 day free trial@creditrepaircloud.com free trial and if you'd like to change lives and grow your own credit repair business, check out our Credit Hero Challenge. It's a live experience that has helped tons of credit heroes to get certified in disputing and to gain confidence as they run their credit repair business on a solid foundation so they can change a lot of lives and make a great living in the process. We're starting the next challenge very soon, so you want to join before the doors close or you're going to have a long wait until the next one. So sign up right now@creditherochallenge.com and if you're finding value in the things that I share on this podcast, click below to subscribe and follow and give me a five star review or share the show and help me to change more lives. If you'd like to read the show notes, they're posted on my blog. If you have a question or a comment, drop it down below because I read each and every one of them and I would love to hear from you. If you want to learn how to deal with real nightmare customers, check out my episode on refunds and chargebacks. In the meantime, take care Credit Hero and keep changing lives.