It’s a brave new world: customers have the power.
The Consumer Rights Act of October 2015, has been billed as the ‘biggest shake-up’ in consumer rights law in a generation. It means that UK consumers have more rights and protection after they’ve purchased goods and services, than ever before.
In short, the Act gives consumers the right to a full refund on a faulty item for 30 days after purchase, makes it easier to challenge hidden fees and charges, and extends the rules to digital content for the first time.
Why the need for an overhaul? The previous Consumer Rights Act had become somewhat outdated in today’s digital world. Shoppers in the UK are increasingly spending their money on digital content, with more than £2.8 billion spent on downloaded music, video and games alone last year.
Old laws combined with the evolving marketplace created confusion and frustration for both consumers and businesses. The new act now clarifies and modernises the existing law, leaving consumers much better informed and protected when buying goods or services in all formats.
With more rights, this is clearly a big step for the ‘empowered consumer’ and will impact how businesses interact with their customers. With more power placed in the hands of the consumer, businesses need to work smarter than ever to build deep and meaningful relationships with them. To keep up in this new world, the most successful digital marketers will focus on customer engagement by providing consistent, personalised experiences that reach customers just as they need them.
Barely a week goes by that we don’t hear stories in the news about less than satisfactory customer service. The publication of a recent Which? report named Easyjet and Virgin Atlantic among the worst airlines when it comes to how it deals with its customers. Here’s why that’s concerning: the rise of mobile technology and social media means consumers don’t hesitate to share bad experiences. Companies with poor customer service records risk being named and shamed publicly.
So what can business owners do to best manage this shifting dynamic?
1. Be responsive
Customers expect consistent, helpful and personalised communication from the companies they choose to do business with and, if they don’t get it, they are prepared to take their business elsewhere. A culture of immediacy has developed. Businesses are under increased scrutiny and pressure to adapt in order to meet the demands of a marketplace that is increasingly centred around technology, mobility and social media. So, if a customer tweets or emails you, respond within hours (or minutes if you can). Businesses that ignore the needs of the modern consumer will lose customers and the bottom line suffers.
2. Be social
In today’s social media age, the dynamic has shifted and businesses need to do a lot of work on the back end to ensure they really know and understand their customers. Customer Relationship Management technology is helping businesses keep up with these developments. By capturing information across multiple channels and platforms, customer-service teams can have all the information they need at their fingertips to build a complete picture about the situation surrounding the complaint. When it comes to customer service, access to information is a life saver. Important details like what the customer has bought from you previously and what posts they have liked on your Facebook page empower customer service teams to respond and handle complaints effectively and efficiently.
3. Be ‘human’
In a Which? report last year, 53 per cent of consumers cited friendly and helpful staff as a good example of good customer service. Simply put, human touchpoints matter: a recent McKinsey report notes that only 80 per cent of businesses rely on a combination of digital and human touchpoints to conduct their business – people connecting with people is still very critical in delivering exceptional customer service.
Ultimately, people still want to talk to people. We just need human interaction that’s relevant. Connecting the digital and human touchpoints is what’s important, as well as giving customer service/sales reps context on what digital interaction customers have already had with your brand. That’s the new challenge.
With enhanced consumer rights and an increasingly competitive marketplace, customer engagement is becoming the true differentiator in many industries – far more so than price or product features. By providing the right balance between a “frictionless” buying experience, with the added nuance of the “personal human touch,” businesses have a better shot at succeeding in today’s environment where customers have the power.
By Henning Ogberg, Senior Vice President & General Manager EMEA, SugarCRM
PrivSec Conferences will bring together leading speakers and experts from privacy and security to deliver compelling content via solo presentations, panel discussions, debates, roundtables and workshops.
For more information on upcoming events, visit the website.
comments powered by Disqus