Keeping customers happy is the name of the game. Unfortunately, it’s not the only responsibility modern businesses have. In addition to keeping customers satisfied, you also must remain compliant with various laws, regulations, and requirements in your industry.
Compliance: The norm in today’s business world
It’s easy to view compliance as a pain in the rear – a deterrent force in your pursuit of growing revenue, scaling your business, launching new products, or managing people. Compliance means abiding by constricting rules and regulations, even when you don’t feel like they’re within your company’s best interests.
The thing about regulatory compliances and other industry rules and laws is that you don’t really have much of a choice. You either abide by them or you get penalized, sanctioned, and/or shut down for your lack of obedience.
For many businesses, the biggest point of friction occurs at the intersection of regulatory compliance and customer satisfaction. Abiding by a certain regulation often feels like a direct threat to keeping customers happy, but this isn’t always the case. In fact, the more you study the purpose behind compliance, the more you’ll realize that rules and regulations actually help keep you on track.
Remaining compliant and keeping customers happy
The rise of the cloud has been one of the more interesting developments to watch in recent years. It’s gone from a promising technology to the undisputed present and future of computing. But part of what has made the cloud successful is the fact that its growth has been so closely monitored to ensure customer-side safety and security. Many regulatory agencies and bodies require businesses to meet very specific compliance measures when it comes to handling customer data and confidential information.
This is just one example of how compliance and customer relations interact in a positive way. If it weren’t for these compliance measures, it’s likely that some businesses wouldn’t take the necessary security precautions, which would result in preventable data leakage and security risks (which would ultimately hurt customer satisfaction in these brands).
Another example of how certain compliance measures can protect a customer’s best interests (and thereby the company’s best interests) is found in American franchises.
“Franchises, multi-location companies and organizations who have a well-defined model have staked and scaled their growth based on consistency and adherence to the fundamentals that made that system successful,” Kelly Grace writes for Volano Solutions. “In this regard, compliance to those tenets is necessary not just for health, safety or legal reasons but to delight customers and drive revenue.”
Agile compliance systems are a must
Having acknowledged some of the benefits of compliance and how it can have a positive impact on customer relationships, it’s also important to recognize the fact that fragmentary compliance systems can be dangerous and costly when it comes to the customer experience.
As compliance expert Holly Parker writes, “Fragmentary compliance systems that slow down, restrict, or inconvenience customers will lead to a lack of trust and loyalty in the institutional-customer relationship, instead of nurturing the reliability and convenience which generates loyal and satisfied customers – customers who contribute to a financial institution’s long term market success.”
Clearly, there’s a need for agile compliance systems that encourage consistency, while eliminating the friction that typically comes with incomplete systems and strategies. If your business is subject to external compliance – i.e. industry regulations – then it’s up to you to develop internal methods for handling these regulations in the most efficient manner possible.
If your organization is subject to internal compliance – like specific rules from corporate – then it might be worthwhile to sit down and have a conversation with key business leaders about how you can increase flexibility without compromising on consistency.
Whatever the case may be, don’t sit back and watch.