There are plenty of “intangibles” when it comes to running a business. One crucial aspect is called “goodwill,” the portion of the business’ value that is higher than the sum of their tangible assets.
Goodwill is an important part of improving your company’s intangible assets. But what exactly is customer goodwill, and why is it important?
Customer Goodwill Definition
Customer goodwill is the value that good customer relations bring to your business. It is the value that a business owner can leverage when selling, that says consistent and loyal customers add an intangible value to their business. Providing high-quality customer service and having successful customer relations is how you obtain customer goodwill. Sometimes, it can simply be finding memorable ways to say thank you to your customers, and them remembering the experience.
What exactly makes up customer goodwill? It can look different for each individual business. In general, customer goodwill is a combination of common intangible assets like customer loyalty, brand recognition, customer value, and more.
Example of Customer Goodwill
Imagine that you run an eCommerce store that sells children’s toys. Although your business is slow most of the year until the holiday season comes around, you have an excellent reputation for shipping orders out on time and troubleshooting customer issues. You have loyalty programs and know with confidence that customers will come back and increase your business through word of mouth. Your actual business may only be appraised to be worth a certain amount because of your generally low sales, but you know that your customer goodwill adds more value.
Why Customer Goodwill Is Important
It can be surprisingly easy to lose a valued customer. One bad experience with an incomplete order, long wait time, or bad customer service experience can ruin a well-developed relationship. This risk is inherent in any business. Losing one good customer can have a tangible impact on your business’ success.
On the other hand, one good customer experience can forge a relationship that lasts for years. When a one-time customer turns into a loyal one, this can cause a domino effect. You go from a random sale to consistent sales, and the likelihood for them to bring you new customers increases.
How To Increase Customer Goodwill
Customer loyalty programs are the most common way that businesses think about improving their customer experiences. You may have loyal customers, but it is hard to gauge their level of loyalty. Creating rewards programs makes it easier to retain customers and show them that you appreciate their business. Companies like CVS, Starbucks, and Amazon are famous for their loyalty programs. These programs give customers special perks that make them feel like they are getting special treatment. Whether it is special discounted prices, rewards programs, or free products on birthdays, incentive programs are easy ways to build customer goodwill at a low cost to you.
Recovering From Mistakes
Sometimes, a customer will remember a bad shopping experience better than a good shopping experience if they are met with awesome customer service. Every business makes mistakes, and sometimes they are far outside of your control. This is why it is incredibly important to have a good customer service infrastructure.
Sometimes, good customer service means taking losses when they are unable to be avoided. If you mess up a customer’s order, it may be worth it to send them the correct one for free and give them a voucher or gift card. The way that you react to these customer service opportunities is incredibly important. It can mean the difference between a ruined or restored customer relationship.
Good Support Channels and Proactive Customer Service
Lastly, it is very important to have the best possible system in place to provide your customers with the best possible service. Goodwill is hard to obtain without the right building blocks in place. This is why good customer support channels and proactive customer support (chatbots, gathering and implementing feedback, getting to know your customers) are extremely valuable: they create intangible value by way of customer goodwill.
Listing Mirror Can Help
If you have a disorganized business, customer relations may be looming over your head as an area of improvement. How are you able to be sure that customers are satisfied and happy when there is no time to interact with them? This is where Listing Mirror can help save you time. Our trusted software streamlines your multi-channel listings, integrations, and order fulfillment, giving you more time to spend improving customer goodwill. Start your free trial today by clicking the button below!