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Want to Limit Liability? Focus on Customer Communication

Written by John Rabil | Sep 16, 2020 8:44:00 PM

Customer communication is the crux for any business to be successful. Customers are the major stakeholders of the company and communicating with them diligently is important for any business to thrive.

What differentiates a mature, professional, and successful entity from the rest is its ability to communicate effectively with clients. Creating customer loyalty means listening to feedback and anticipating their needs or wants, proactively considering potential problems, and trying to address them before they become a major headache.

One of the easiest ways businesses can limit liability, disputes, and potential lawsuits is to focus on having a successful customer communication plan and policies in place. Diffusing situations or issues before they become full-on disputes or lawsuits can save businesses countless dollars and time.

Here are some tips and best practices that can be used to help create a culture of positive customer communication in business, which will in turn help limit one of the biggest liabilities a business face.

How to Elevate Customer to Business Interactions

  1. Entertain Questions

Businesses should be excited if people are inquiring about products or services. It gives you room to market directly to them. Utilize a proactive approach and educate them about benefits and advantages. Many clients don’t appreciate the value of a product or service until they’re educated on the returns. Those in charge of product presentation and sales should be knowledgeable and possess all information on all aspects of the business, including your competition. Take pride in discussing your edge against your competitors. The more customers think a business is open and easy to communicate with, the less likely they are to escalate a situation.

  1. Manage Complaints

Dealing with customer complaints is part of every business. The most important thing is how well a company handles these concerns. Similar to sales, customer service is key for any company; on some level, most businesses are in the business of customer service. Businesses should be able to track complaints properly and handle these issues, ensuring that things are addressed appropriately and resolved correctly the first time. The goal should be repeat business and an expanding customer base. One client, satisfied or dissatisfied, can have a major influence on a business. Word of mouth is crucial, especially for small businesses and startups. If consumers can relate a positive experience with your product or service, it will have a big impact on your company’s reputation, and limit the chance of an unsatisfying situation becoming unmanageable.

  1. Listen

Giving customers the opportunity to express themselves transforms a disgruntled and demanding customer into a loyal and satisfied one. It’s always about making them feel important and valued. Businesses should always try to put themselves in the customers’ shoes. Simple gestures and powerful statements of thanks matter and create a lasting impression.

  1. Show Expertise

One way to influence individuals and companies is showcasing knowledge of the products or services being offered. How can a business expect clients to believe in what it’s selling if it can’t answer every possible question they might have? The way businesses talk about products or services impacts perception more than they realize and reinforcing a positive perception will help limit potential issues.

  1. Keep Customers Informed

Don’t focus on a one-day deal; always aim for repeat business. Send customers thank-you notes, email them discount offers and codes, and inform them of new products from time to time. Keep them in the loop to establish stronger ties and customer intimacy. Creating a stronger relationship with customers builds loyalty and makes it less likely that a misstep, mix-up or mistake by a business will lead to a major dispute, customers will feel comfortable that they can resolve the issue without immediately taking some drastic steps, such as threatening or filing a lawsuit.

Focusing on customers and how to better provide them with products and services will be beneficial across numerous areas of business. It builds loyalty, will likely increase sales, and will limit the number of negative interactions and potential lawsuits that will come from customers. It’s an important risk management tool that many businesses overlook and pay for down the road.

 

Have questions about limiting customer liability or risk management in general? Contact us to schedule a free consultation.