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Shep Hyken reveals how ‘dangerous customers’ and employee experience impact customer retention

In a captivating discussion on customer service, Shep Hyken, renowned customer experience expert and bestselling author, joins us on the latest episode of CBT Now. As the automotive industry grapples with shifting customer expectations, Hyken delves into the nuances of customer satisfaction, highlighting why even seemingly satisfied customers may never return and how a robust employee experience can make all the difference.

Key Takeaways

1. The concept of the “dangerous customer” refers to those who appear satisfied but don’t return. Hyken explains that satisfaction alone isn’t enough to ensure repeat business. A satisfied customer might rate their experience as average or satisfactory, but this does not guarantee their return. In his research, he highlights that 25-40% of customers who are merely satisfied don’t return. The goal should be creating experiences beyond mere satisfaction to turn customers into enthusiastic repeat buyers.

2. Hyken’s findings reveal a troubling trend: customers who rate their experience as “average” or “satisfactory” are significantly less likely to return. He cites a recent study where 23% of customers rated their experience as average, indicating they would likely not return. This underscores the need for businesses to exceed average expectations. Hyken suggests that a memorable, slightly above-average experience can foster greater customer loyalty and repeat business.

3. Hyken addresses the issue of survey fatigue, where customers are overwhelmed by the sheer number of surveys they receive. He reveals that only 2% of customers complete surveys, with many abandoning them if they are too lengthy. Furthermore, even when customers provide feedback, frustration arises if the company does not act on it. Hyken advises that businesses should collect feedback and demonstrate tangible improvements based on that feedback to maintain customer engagement and trust.

4. According to Hyken, the foundation of excellent customer service starts with a positive employee experience. He emphasizes that happy, well-trained employees who feel valued and empowered are more likely to deliver exceptional service. Hyken advocates investing in employee training and creating a supportive work environment to enhance job satisfaction and performance. When employees are motivated and engaged, their positive attitude translates into better customer service.

5. Overall, Hyken draws from the success of companies like Chick-fil-A to illustrate the concept of “destination employment.” This approach focuses on making the workplace desirable for employees by fostering a positive work culture and offering growth opportunities. Hyken argues that when employees are treated well and feel a strong sense of purpose, they are more likely to go above and beyond in their roles. This, in turn, enhances the customer experience, as motivated employees deliver superior service that encourages customer loyalty.

"Customer experience is about creating an experience that's better than average. It doesn’t have to be over-the-top, but it should be consistently positive so customers say, ‘I like going there.’" — Shep Hyken

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