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Not much has been happening this week tbh. Elon is still trying to sue the crap out of Open AI, and the US government is halfway to a complete Tiktok ban.

Anyway, let’s get into it! 🔥

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Tools + Productivity

Strategy

Do you care about your customers?

Although the answer might be a knee-jerk “YES!”, how often do you really show it?

What actions have you taken in the past few weeks to tell your customers that you would go to the ends of the earth for them? That you love them?

This week’s case study is going to be about one company that does customer service better than anyone else: Chewy.

Personalization Can Make Or Break You
A 2021 McKinsey study found that “companies who excel at demonstrating customer intimacy generate faster rates of revenue growth than their peers.”

By the numbers, 71% of consumers expect companies to deliver personalized interactions. And 76% get frustrated when this doesn’t happen.

In other words, if your business is not interacting with your customers regularly and treating them like valued individuals, then you are missing out on crucial revenue growth opportunities.

In fact, McKinsey found that companies that get personalization right generate roughly 40% more revenue than their peers.

The Chewy Method
One company that got customer service right is Chewy, a giant in the pet food/products e-commerce space.

With so many options available to consumers, businesses need to find ways to stand out and differentiate themselves from their competitors. Chewy does this by connecting with their customers on an emotional level.

For one, they start by referring to their customers as “pet parents” rather than “pet owners.” Although it’s a small difference, it conveys that Chewy relates to the emotional bond formed between human and pet.

Next on the list, they use everything they know about you to their advantage and add a human touch.

Don’t believe us? Check out some of the comments on this Reddit thread.

“I unfortunately have been the recipient of a couple of these cards over the years. I will say the first one absolutely blew my mind. I somewhat expected the cards from my longtime vet and even the daycare and groomer but for the huge online supply website to send one was mind blowing.

I buy almost everything from them, so probably hundreds of items over the past decade for my pets. With that volume of orders, there have been several of getting the wrong product. Sometimes it was them sending the wrong thing, but several times it has even been my error (like I ordered a large harness for my medium dog). Every single time they told me to donate the item to my local shelter and sent me a replacement.” -Reddit user, HoopOnPoop

If you scroll through some of the comments on the thread, you’ll notice that Chewy also sends hand-written birthday cards for your pets each year.

In fact, people found the consistency of the handwritten cards to be so impressive that they started to doubt if they were handwritten at all. This theory was quickly debunked:

Why is this the fact that it’s a real person so important?

Because when people receive a hand-written letter, they know another human was involved in conveying that message. Now, when Chewy customers think of the company, it’s no longer a website URL or the logo or a box of dog treats that comes to mind, it’s a person who cares about the wellbeing of their pet.

One final way that Chewy goes above and beyond with its customer-obsessed approach is with its no-questions-asked refunds. Haggling with customers over a bad experience is never fruitful, and Chewy knows that by shutting up and shipping the refund/replacement, they can turn an angry customer into a lifelong supporter.

Brief Digression To Eat More Chickin
When writing this, we couldn’t help but think about another company that knows how to keep its customers happy (ideological influences aside).

Chick-Fil-A goes above and beyond with their customer service. It starts with a simple, “my pleasure,” but the customer-obsessed experience bleeds into everything they do.

Next time you go to Chick-Fil-A, ask them for more ketchup, more napkins, or maybe tell them they got your order wrong and you’d like a refund.

My bet is that they will not hesitate to fulfill your request no-questions asked, because that is what great customer service looks like.

The Proof Is In The Sales
Back to Chewy, their brand loyalty is a feat to behold, and we can show you just how impressive it is with this chart:

In the years following Chewy’s start, the amount spent on their products per customer grew each year.

This means that not only was their retention incredibly high, leading to consistent recurring revenue, but each year their customers found new products to buy from them, which led to growing recurring revenue on a per customer basis.

In other words: even if Chewy never acquired another customer, it would still see revenue growth because of how much its customers love supporting the business.

Applying Customer Service
While it might not make sense for you to send hand-written letters each time your customer has an issue, there are always ways to make your customers feel seen.

Having an incredibly accessible/maneuverable online store and recommending products that are specific to the user’s preferences are simple ways to show the customer that you are aware of their needs and are doing your best to cater to them.

Looking Ahead
This month, we’re exploring how to sell products when they’re not unique or revolutionary. Customer service is one of the most underrated tools in building brand loyalty and differentiating your business from its competitors, even when what you’re selling is the exact same. Take a page out of Chewy’s and Chick-Fil-A’s playbook and become customer-obsessed.

For a sneak peak into the rest of the month, check below:

Week 1: Target Niche Markets
Week 2: Emphasize Brand Values
Week 3: Provide Exceptional Customer Service (this week)
Week 4: Competitive Pricing & Value-Added Services

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