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Three Ways Effective Communication Improves Customer Satisfaction

June 18, 2018 Lizzie Hoffman


Communication is Key – we hear this day in and day out, but while we tend to nod our heads and move along. Maybe it’s time to analyze why communication is key? Is it the key to more revenue? Greater customer retention? Or maybe it’s something else.

Today, we’re exploring three ways effective communication improves customer satisfaction, but before we dive in, we need to understand what qualifies as effective communication.

Defining Effective Communication

A quick Google search for “effective communication” returns search results with ways to improve communication skills, using these skills for workplace success, and something called the Ten Commandments of Effective Communication.

The catch? None of these seem to relate effective communication to its impact on customer satisfaction. The most concise definition of effective communication is “listening to your customer needs, understanding them, setting and establishing expectations and most importantly keeping them informed.” By implementing these communication tactics, customer satisfaction numbers are virtually guaranteed to increase in your surveys, phone interactions, and other methods of post-purchase communication.

Boosting Customer Satisfaction; Easy as 1, 2, 3

But, how does this combination of attentive listening, genuine understanding, and structured goal setting + information sharing improve customer satisfaction? We have three answers. When successfully enacted, effective communication:

  1. Creates Trust
  2. Provides Effective Solutions
  3. Encourages Continued Engagement

As humans, we love being able to trust others and form bonds. That being said, it’s a little more difficult to do in the world of business + customer relationships. Customers worry they’re being taken advantage of for a sale, and businesses want to prove the opposite. Effective communication resolves this issue. By attentively listening to customers and meeting the set expectations, businesses prove their commitment beyond any thought of the zeroes on an invoice.

In the same vein, when businesses effectively communicate and understand their customers’ needs, the solutions they provide will be miles more relevant than a cookie cutter offer. While it’s important to never underestimate the power of a speedy customer reply, a thoughtful and speedy answer packs double the punch. It’s simple logic, right? Businesses that effectively communicate will also see an increase in revenue. As a result, a customer who is happy with their solution means opportunities for continued engagement.

Customer loyalty is something every business dreams of. Counting on happy customers returning for future purchases means more guaranteed revenue and a good chance they’re spreading the word of their positive experience to their friends and family. Those customers essentially do business for you, so it’s important to remember to continue engaging them with friendly communication — a solid communications strategy will always include an advocacy communication element. It’s kind of like account based marketing (ABM) in a nutshell. With effective communication, you identify potential returning customers and build their trust, expand options with them by providing effective solutions, and engage with opportunities beyond the current deal due to the trust you’ve created.

Happy Customers, Happy Company

All in all, communication is key. This is undeniable. What’s interesting, though, is how effective communication impacts and improves customer satisfaction without us as businesses even realizing it. By working hard now and communicating effectively to build the trust, provide effective solutions, and encourage continued engagement, we can increase revenue, improve brand reputation, and sleep a little easier at night knowing our customers are happy. Isn’t that the real goal? Without effective communication and the resulting happy customers, our business dreams go down the drain. The importance of effective communication is undeniable.

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