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Why Communication is Crucial to Customer Loyalty

It is no secret that customer retention and loyalty are the backbones of almost all companies and organizations. It has been shown that just a 1% increase in customer retention can provide as much as 5% of positive change in a company’s financial standing [1]. Additionally, nearly 80% of a company’s future profits can derive from just 20% of existing customers [2]. 

So, how can you increase your customer retention rates in your veterinary practice?  

The Veterinary Hospital Managers Association (VHMA) asked several veterinary practice managers to describe how pet-owners demonstrate loyalty. Answers tended to describe a patient who: 

  • Regularly returns
  • Provides referrals and provides positive reviews
  • Is willing to pay for whatever their pet requires 
  • Follows recommendations

Effective Communication is key to building long-lasting client relationships. 

As the common saying goes: Loyalty is not given, but earned. This can be applied to several aspects of life including customer loyalty for your veterinary practice. 

 

Why Communication Matters…

 

Builds Trust

Loyalty and trust go hand-in-hand as no client will be loyal to a practice if they do not believe that they trust the practice’s advice, feel heard and understood by veterinary staff, and are consistently well-informed of the technical procedures.

For example, in a study that surveyed 20 veterinary practices, pet owners emphasized the significance of building trust through communicating the necessary diagnostic or treatment information and appreciation to practitioners who understood that they want the best outcome for their pet through informed decisions [3]. Speaking with respect, in layman's terms, and providing several informed recommendations through a kind tone leads to high levels of trust in the veterinarian’s opinion [4].  

This concept is encompassed in the well-known commitment-trust theory of relationship marketing. This theory encourages the importance of trust and commitment to building a positive relationship between clients and customers to boost productivity, effectiveness, and efficiency [5]. This degree of trust, reinforced by a commitment to effective communication, allows clients to gain confidence in the products and services of the practice. It overall improves the quality of service provided and improves customer satisfaction [4].  

To put it simply, you are more likely to confide and seek help from a friend rather than a work colleague, right?

 

Sets Client Expectations and Limits Complications

Through frequent interaction with clients effective communication, your practice can gain a scope of client needs and alter products and services to meet these expectations. Thus, communication allows the practice to meet client expectations. 

Similarly, communication also limits complications from occurring due to client dissatisfaction. Prompt and empathetic communication is essential to transform a poor experience into a positive one as quick and productive resolutions are crucial. It can increase client retention by ensuring that clients are satisfied with their experiences and make them more inclined to return in the future.

In order to maintain retention rates, the resolution is extremely important as 50% of customers tend to switch to competitors after one bad experience and this can snowball to 80% following more than one negative encounter [6]. 

In a study investigating alleged veterinary professional negligence, communication breakdowns were the root of 80% of cases in 2021 [7]. This has been an ongoing problem in veterinary practices as similar findings were found in the UK in 2000 where the Veterinary Defence Society also found that 80% of negligence claims were linked to poor communication. 

Implementation of feedback systems into practices is highly encouraged to find areas of improvement and meet client expectations to avoid future negligence claims and improve customer loyalty rates. Training staff on effective communication can go a long way through encouraging the use of simple language to explain medical procedures, explaining veterinary handouts or providing informative videos can help ensure the client fully understands the course of treatment and has time to mull over their option to make the best decision for their pet. 

 

Provides a Personalized Experience

Constant and transparent communication helps clients feel as though their individual preferences and interests are taken into consideration [9]. It allows the ability to tailor specific recommendations or offers to best suit the needs of the client, fostering a sense of loyalty. This can be done through communicating for and documenting the client’s goals, challenges and emotions to ensure a personalized and relevant experience to meet their personal needs and expectations [9]. Personalized service is the stand-out point to other competitors and builds trust as it allows the client to feel as though they are heard and considered [9]. This is not a surprise as everyone wants to feel special and regarded. 

It in turn builds loyalty through the formation of long-term relationships between clients. This can be done through regular communication which reinforces client-veterinarian relationships. Practice should implement a variety of personalized communication strategies (phone, chatbots, emails, websites) to ensure the client’s contact preferences are available. Text messages to celebrate pets’ birthdays and follow up calls are also suggested.   Application of customer-relationship management (CRM) software should be administered in practices to email careful documentation of the client’s history, needs and requirements. 

All these communication strategies ensure your clients are well-looked after and get the quality service they expect. 

 

Cements Client Advocacy 

Word-of-mouth is a powerful tool that can only be used via satisfied and loyal customers who can advocate your practice. Effective communication can involve positive experiences which can be spread to other potential clients who can increase revenue and business [5]. Furthermore, advocacy helps with the practice’s image and credibility. According to Neilson’s Advertising Report, 92% of consumers follow recommendations from close friends and family to be more than advertising and 74% believe word-of-mouth is a key influencer in purchasing decisions [10]. A similar ideology can be implemented in veterinary practices where as more clients are satisfied with the service, the more they will recommend their close friends to your practice. 

Thus, to promote client advocacy, effective communication must be administered to ensure clients have positive experiences through building trust and personalization [5]. Requesting loyal clients to review your practice on various platforms is also recommended to kickstart more client advocacy. 

 

 

Some Tips for Effective Communication…

 

Communication at all stages of the clinical process 

Constant and clear communication should be given to pet-owners through all treatment stages. Use a respectful and kind tone while talking in simplistic terms that are easy to understand. 

To see more on how to effectively clinically communicate, see https://vetcheck.it/infographics/clinical 

 

Emphasis on Client Education

Ensure the pet owner understands all procedures and recommendations provided. Supply handouts, pamphlets or suggest informative videos and websites to better their understanding. VetCheck is one example of a tool that helps drive client education back to the clinic. With over 2000 digital resources and home care videos, it is a fast way to ensure your client receives all the information they need to make an informed decision.

 

Make it personal 

Listen carefully to your client’s concerns and tailor your treatment according to their wishes and needs. Send them specific advertisements and try sending links for animal charities, newsletters or training programs for their pet, according to their interests.  

 

Request for or create a platform for feedback

This can be through follow-up surveys, asking the client how their experience was, or providing a page on the practice website that allows anonymous feedback. 

 

Create different modes of communication 

Emails, chatbots, phone calls, websites, social media etc. Make sure your client has many modes of contact!

 

Respond quickly to concerns or complications 

Apologize and immediately offer all solutions possible to the problem. Ensure you are empathetic and listen carefully to their concerns. Make counter-offers when needed. 

 

 

 

References

  1. Moenardy KK, Arifin Z, Kumadji S. The Effect of Service Quality and Relationship Marketing to Customer Value , Customer Satisfaction , Switching Cost , and Customer Retention : A Case Study on the Customers of Bank NTT at East Nusa Tenggara Province. IJMAS [Internet]. 2016 [cited 3 July 2023]; 3(4): 48-63. Available from: https://www.semanticscholar.org/paper/The-Effect-of-Service-Quality-and-Relationship-to-%2C-Moenardy-Arifin/e6f851fdd49c28aecf2c196907d933dd3f0a571b

  2. Hwang HS. A Stochastic Approach for Valuing Customers: A Case Study. IJSEA [Internet]. 2016 [cited 3 July 2023]; 10(3):67–82. doi: 10.14257/ijseia.2016.10.3.07‌

  3. Janke N, Coe JB, Bernardo TM, Dewey CE, Stone EA. Pet owners’ and veterinarians’ perceptions of information exchange and clinical decision-making in companion animal practice. PLOS ONE [Internet]. 2021 [cited 3 July 2023]; 16(2). Available from:  https://doi.org/10.1371/journal.pone.0245632

  4. ‌Brown B. The Dimensions of Pet-Owner Loyalty and the Relationship with Communication, Trust, Commitment and Perceived Value. Veterinary Sciences [Internet]. 2018 [cited 3 July 2023]; 5(4):95. doi: 10.3390/vetsci5040095

  5. Morgan RM, Hunt SD. The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing [Internet]. 1994 [cited 3 July 2023]; 58(3):20–38. Available from: https://journals.sagepub.com/doi/abs/10.1177/002224299405800302?journalCode=jmxa

  6. Hueffner E. What is customer experience: strategies, importance & examples [Internet]. Zendesk Australia. 2022. Available from: https://www.zendesk.com/au/blog/why-companies-should-invest-in-the-customer-experience/

  7. Russell E, Mossop L, Forbes E, Oxtoby C. Uncovering the “messy details” of veterinary communication: An analysis of communication problems in cases of alleged professional negligence. Veterinary Record [Internet]. 2021 [cited 4 July 2023]; 190(3). doi: 10.1002/vetr.1068

  8. Kinnison T, Guile D, May SA. Errors in veterinary practice: preliminary lessons for building better veterinary teams.  Veterinary Record [Internet]. 2015 [cited 4 July 2023]; 177(19):492–2. doi: 10.1136/vr.103327

  9. ‌‌Riches L. The role of loyalty schemes in veterinary practice. In Practice [Internet]. 2009 [cited 4 July 2023]; 196-197. Available from:  https://doi.org/10.1136/inpract.31.4.195

  10. Nielsen. Nielsen Annual Marketing Report [Internet]. 2023 [accessed 5 July 2023]. Available from: https://www.nielsen.com/insights/2023/need-for-consistent-measurement-2023-nielsen-annual-marketing-report/
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