The customer is always right. Or so they say. In order to grow your business, you need to be able to deal with difficult customers. However, dealing with them isn’t always easy. Especially if you have a type A personality and don’t like people questioning your decisions or dictating how you run your business. Most small businesses can’t handle difficult customers well enough for it not to affect their bottom line and growth rate negatively in the long term.

Below are a few things that every business owner should know about dealing with difficult customers so that they become easier to handle in the future.

Be genuine and caring.

First and foremost, show your customers that you have their best interest at heart. If they feel like you only care about the bottom line, you’ll never get anywhere and your business will never be able to grow. Show them that you really do care about them and that you are willing to work with them in order to make a mutually beneficial relationship happen.

Honesty is paramount.

Always be transparent and honest with your customers. This gives them peace of mind in knowing that they can trust you while also feeling like they can reciprocate and trust you as well. This also helps endear them to your company which helps build long-term relationships rather than short-term ones where they may not feel connected enough to continue working with your company in the future.

Know when to say no.

It can be difficult to know when a customer is being unreasonable and asking too much of your time which will put an unnecessary strain on your business, or is asking for something that you just cannot do. You might also decide that it would be better for them to find a different vendor rather than have you work with them in the long term because you aren’t able to give them what they want. However, it is important to know when there is a point where you need to say no, because if you continue to take on more projects and choose customers that ask too much of your time, it will become harder and harder for your company as a whole to grow and sustain itself in the long term.

Communication is key.

Communication is key when it comes to dealing with difficult customers. Take the time to explain your thinking and why you made the choices that you did. If they don’t agree with what you did, let them know that you can work something out. On the other hand, if they continue to be a problem for your business, then things might get more complicated for both of you.

Offer a little more than what you are currently paying for.

One of the most important things you can do for difficult customers is to offer a little more than what you are currently paying for. If you have a feeling that your customer might be demanding more in the future, offering them something extra now will make it easier for them to be willing to work with you again when the time comes.

Conclusion

You need customers to make a living, but you also need to remember that not all customers are made the same. Dealing with difficult customers can be frustrating, but it can also be rewarding. By staying open to new challenges, and knowing when to say no, you will eventually develop the customer service skills and empathy necessary for handling all kinds of customers.

In the US, there is currently a staggering 3.8 billion memberships spread across numerous customer loyalty programs. You may be asking yourself, why are so many brands investing in this tried-and-tested customer strategy still when there are more innovative solutions available.

Although the approach has been in place for decades, the dynamics of loyalty programs are always changing to appeal to the interests of newer audiences, meet the needs of the moment, and keep up with the ever-increasing competition.

What Is Customer Loyalty?

Loyalty among customers is defined as the act of consistently choosing the products and services of a certain company above those of its competitors. When someone is loyal to a certain company their purchasing decisions are not impacted by price or availability considerations. Most people would rather wait – and even pay more – to receive the same product and quality of service that they are accustomed to and value.

How Customer Loyalty Programs Work

A customer loyalty program is a marketing strategy that recognizes and compensates customers who make repeat purchases or engage with a brand on a regular basis. Customers who spend more money with a company may be rewarded with points or privileges, and their loyalty levels may rise as a result. As such, loyalty programs can have lasting effects on customer retention.

Advantages of Loyalty Programs

1) They establish an emotional connection. For example, curating a variety of third-party promotions (such as access to restaurants, theaters, spas, and merchants) can help to create a sense of community and a “lifestyle” perception among customers, which will aid in emotionally connecting them to your business. If you’re able to combine this with personalization, the impact will be even greater.

2) They create repeat customers. Existing customers are 50% more likely than new customers to try new products. They also spend 31% more per purchase. And attracting a new customer can cost five times as much as keeping an existing one. Finding new customers is important for growth, but keeping existing ones is the key to long-term success. A customer loyalty or incentive program can help you prevent high turnover rates by building important, long-term relationships with existing consumers. (It’s also a cheap way to boost sales.)

3) They engage customers. Customer engagement has a direct impact on the long-term viability of a brand. A brand that fails to connect with its target audience has a low recall value – and has difficulty establishing a trustworthy image in the marketplace. A customer loyalty program is an excellent method of promoting client involvement. When customers are members of a loyalty or rewards program, they are more receptive to receiving emails or other marketing materials from the business. These programs can provide comprehensive client engagement and contribute to the strengthening of the relationship between the brand and its customers.

4) They create brand advocates. A satisfied customer is a happy consumer. Implementing an effective and relevant customer loyalty program can help nurture brand advocacy through a loyal customer base. Brand advocates have a favorable impact on their network of family and friends, and serve as an ambassador for the brand’s message. A referral program can aid in the creation of brand supporters as well as the generation of additional referrals.

5) They deliver insights. Loyalty programs should be designed to provide the greatest possible benefit to your customers – while also benefiting your business. Today’s digitized rewards programs give you access to real-time data about how your customers interact with the program and with your brand as a whole. This information allows you to design unique and successful ways for boosting not only your loyalty program but also your reputation.

Digital features enable you to experiment with different incentives, find the prizes that are most appealing to specific types of clients, and detect the rewards that aren’t receiving as much attention. Rewards programs can also help you gain a more personalized perspective on your customers’ purchasing habits.