Editorial
The Gist
- Essential component. Customer communication is essential for customer satisfaction and loyalty.
- Key element. Effective communication includes clear, concise messages and adapting to technological advancements.
- Enhancing factor. Compliance with regulations and using technology like machine learning can enhance customer communication.
Customer communications is crucial for businesses to provide exceptional customer experience and build strong relationships with customers in any industry. When conducting business, consider the service provided, customer base, and company size to determine how communication should occur between customers and representatives.
Customer communications ensures that the customer base stays updated on existing products and services, enabling customers to stay well-informed and establish customer satisfaction. Customer communications regarding a specific product or service not only enhances the customer's experience but also helps companies meet regulatory compliance requirements. Moreover, offering customers effective communication channels enables the contact center to shorten call durations, thereby reducing operational costs.
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Clear Communication Boosts Customer Satisfaction Levels
Customer satisfaction is an important key performance indicator in evaluating overall customer experience and the company’s success. Clear, concise communication will keep customers informed during a product acquisition or issue resolution process, leaving customers at ease as they do not have to spend time identifying the next steps in the process.
Customer satisfaction can be measured through surveys or follow-up automated calls as this will help companies to find opportunities to improve customer experience. Establishing direct communication with customers to improve customer satisfaction results in numerous benefits to the company. For example, maintaining a consistent, positive experience for customers increases the likelihood of returning customers.
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Study Confirms: Communication Key to Loyalty
This assertion has been supported by a study previously published in the International Journal of Bank Marketing, Özkan, et al., (2020) as it examined the correlation between customer satisfaction and service quality with customer loyalty. Although the study largely examines these findings within the context of the banking industry in Turkey, the findings are largely applicable when examining the relationship between customer loyalty and customer experience. Özkan, et al., (2020) concluded “that both customer satisfaction and customer perceptions of service quality are important and indistinguishable predictors of loyalty” (p. 396).
In learning from the study’s results, it is imperative to note how customers engage with the contact center to prevent the loss of customers and any decreased profits. Establishing a clear channel of communication between the company and the customer that keeps the customer well-informed and up to date on any changes made within the company to lessen any possibility of miscommunication.
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Regulations Protect Customers and Companies
In any product and service domain within the field of finance, established rules laws, and regulations must be followed to remain compliant. Avoiding these regulations would be detrimental to the financial company due to the consequences imposed for non-compliance.
Additionally, these regulations and laws are often established to protect both the customer and the company. Companies must communicate with customers during product acquisitions, servicing, or any time product features are changed to meet regulatory requirements. Upholding these regulations benefits the company by remaining compliant and further lessening the risk of consequences from a lack of clear communication.
Failure to effectively communicate with customers comes with many risks, especially when working in a field as sensitive as finance. In an effort to support internal and external audits, companies are required to store and produce evidence of the successful delivery of messages through a clearly established communication channel.
Technology Revolutionizes Customer Communications Strategies
In today's world, it's hard to ignore technology's impact on daily life and the many possibilities it offers for improving businesses, including customer communication. One way to integrate technology into customer communication is by using machine learning models. These models can analyze calls to the contact center, identifying opportunities for new communication channels or changes to existing ones. Implementing these changes through machine learning can benefit the company by keeping customers informed and reducing the need for contact center calls.
Tech Revolutionizes Business Communications Channels
Additionally, machine learning models can be monitored and evaluated over a period of time to see the results being produced and any clear next steps that may be identified through customer communication. Any insights made at the customer-level can be utilized to personalize both a website and mobile app to drive customers in the right direction.
By making the website and mobile app more personalized and accessible to the customer, customers are then able to use these tools as a form of self-service, meeting their daily needs and quickly resolving any issues that may arise.
Final Thoughts
Effective customer communication is vital for providing excellent service and fostering loyalty. However, it is important to make certain that customers are being communicated with clearly and concisely to keep customers well informed and to avoid the risk of miscommunication.
Effective customer communication is a dynamic process that requires adapting to technological advancements, regulatory changes and evolving customer expectations. By maintaining open and transparent communication channels, any company irrespective of their domain can foster trust and loyalty among their customers.
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