Customer Bonding
The process through which a company or organization makes connections with its customers
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What is Customer Bonding?
Customer bonding is, just as the term implies, the process through which a company or organization makes connections with its customers. The goal of customer bonding is to develop a relationship and sense of community, including the customers so that they:
- Feel welcomed
- Are more likely to continue patronizing the company (and its products or services)
- Are more likely to recommend the company to friends and family
By engaging in customer bonding, companies are able to generate a sense of loyalty and boost revenue. However, along the way, they tend to find that there are a number of other benefits that come from bonding with customers. For example, getting regular customer feedback can help a company improve its products or services, thereby making them more appealing to consumers.
Summary:
- Customer bonding is the process through which a company gets closer to its customers; the goal is to make customers feel welcome, valued, and heard at all times.
- Customer retention is vital to any company because a loss of customers equals a decline in revenue; losing too many customers could mean the demise of a company.
- Setting up a customer feedback page on a website or a telephone system with a customer service agent enables customers to express concerns or ask questions and to feel heard and valued.
Retaining Customers
Retaining customers is a major part of the success of any business. When customer retention peaks, the company becomes more successful. The concept is pretty simple:
Loss of Customers = Loss of Revenue
The ultimate goal, of course, is to retain customers, and in doing so, boost revenues.
Why Customers Leave
Customers may be drawn away from a company for several reasons. These reasons include:
- Being attracted to a business with similar goods or services; industry players use various tactics to entice customers, such as offering lower prices or providing extra services
- Being disappointed with customer service
- Being disappointed with the goods or services
- No longer wanting or needing the goods and/or services a company offers
Importance of Customer Bonding
Setting up a venue where a company can hear customer feedback is important for any business. The goal is to let customers know they can report any usage issues or problems with goods or services that they may have.
Various options are available to a company for pursuing the initiative. There are many customer relationship management (CMS) software programs available. Provided the company maintains a website, they may include a page that allows customers to leave feedback, ask questions, and comment on any existing issues or concerns. Employees read the comments and report the information to the individuals within the company who can respond to them.
A company may also use an automated telephone system or employ a specific customer service agent who can respond to customer calls. Having an individual answer the phone may be more appealing to customers, as they may feel that they are actually being heard and seeing their concerns addressed.
As long as customer complaints or feedback are responded to in a timely manner, customers are likely to feel that their input is considered valuable and of importance to the company. Generating such a feeling goes a long way toward strengthening customer bonding.
More Resources
CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ certification program, designed to help anyone become a world-class financial analyst. To keep learning and advancing your career, the additional CFI resources below will be useful:
