Audit Protection and Customer Trust
Customer retention is a factor impacted by many variables. With so many inputs that affect customer retention, it can be hard to dial down to a strategy that’s both effective and efficient. Brand reputation can actually be a financial business asset if it’s strong enough.
In some corporate acquisitions - there’s a significant pay for the rights to use branding that carries with it a strong reputation. Even if that reputation came from the previous company. Building brand reputation comes with investing in customer trust and ultimately leads to customer retention, organic customer growth, and repeat business.
“After having a positive experience with a company, 77% of customers would recommend it to a friend. (Temkin Group)”
Audit protection is one of those financial services that offers protection and peace of mind to a customer. It’s a financial security product that will automatically bring validation and professionalism to a tax business. Allowing customers to relax in the event of being called on for an audit, or investigated by the IRS. Your customers can rest assured a tax-expert will be by their side to walk them through the process, and provide clear instruction.
For a detailed look at audit protections, read Refundo’s article that walks through the many benefits of audit protection that make it well worth the investment.
The Importance of Customer Trust
Customer trust builds brand reputation, drives repeat business, and contributes to customer growth. Chances are, customers already naturally want to use the same tax preparation services year after year. That’s because of the convenience factor presented by the ability to import previous years information automatically. However, the year-after-year business isn’t guaranteed and there are a slew of ways to lose business.
“32% of all customers would stop doing business with a brand they loved after one bad experience. (PWC)”
The statistic above is powerful. Considering almost 1/3rd of customers would walk out the door after just one negative experience. A financial audit is arguably one of the worst experiences an individual can endure. That said, tax preparation customers who undergo an audit without any defense are much more likely to switch services the following year. Offering credible and robust audit protection is an easy tactic to combat customer loss.
There are many reasons that tax audit protection is well worth it - but some benefits are naturally more appealing than others. The length-of-service is one of most attractive benefits to audit protection. As audit protection programs often last the duration of an audit-window for just a one-time cost. This brings comfort to the customer, reinforces customer trust, and further drives repeat business year-after-year.
Understanding Customer Trust
According to the Customer Quotient Study by Harvard Business Review, there are six main contributors to driving customer trust. Those driving factors are:
Stability - The stability of a company is a reflection of it’s foundation, resilience, and history. Larger companies that have been around for decades or longer carry with them a higher perception of stability. This can also be indicative of a company's financial strength.
Innovation - Companies need to show innovation. While there’s a place for the tried-and-true, operating in the past is no longer acceptable to the mainstream consumer.
Relationship - As already discussed, an existing relationship between the customer and the company is an important factor in customer trust. Customers who feel a connection with their tax service are more likely to return year-after-year.
Benefit - Customers need to feel as though they benefit from the interaction; as is the nature of business. Simply put, the benefits of audit protection programs are vast and far-reaching.
Vision - Customers want to contribute to a better future. Similar to the innovation factor; customers are showing more favor toward companies that practice social responsibility than ever before. Seeing their hard earned dollars put back into the community in a responsible way significantly affects customer trust, company perception, and brand reputation.
Competence - As always, a business should fulfill their promises, and act with competence. Customers are tough, and have no issue jumping ship in 2020. Fumbling through a process is simply unacceptable in today’s competitive market.
Audit protection is a powerful, simple, and affordable service tax professionals can offer to amplify customer trust. Refundo offers a robust and sleek audit protection program, aimed at offering the most robust protection for your customers at the best price.