Running a small business means making every decision count, even in the language you use day-to-day. The words you choose to talk about your customers do more than fill space on your website or invoices; they shape how your team thinks, how your business is perceived, and, ultimately, how your bottom line performs.
The way you talk inside your business can affect the way it’s seen from outside. For example, ‘Client’ suggests a professional, ongoing and high-value relationship. When customers are making careful spending decisions, language that positions them as important individuals rather than passive recipients becomes crucial for retention and loyalty. World-renowned consultants Bain & Company found that increasing customer retention rates by just 5% can boost profits by 25% to 95%.
Choosing the right term helps set expectations that align with your goals. ‘Customer’ can feel more transactional but also approachable. For people seeking fast, hassle-free service, this may be just the right framing.
The language you use also sets the tone for your staff. When you refer to someone as a ‘guest’ instead of a ‘customer,’ you encourage your team to see their work through the lens of hospitality. This subtle shift can encourage proactive service and prompt the team to see their roles as having a slightly different scope. Disney is famous for calling its customers as 'guests’ and expecting every staff member to treat them accordingly.
Closer to home, Air New Zealand shows the power of a wording change. More than ten years ago, it changed its terminology from 'passengers' to 'customers'. This helped drive a major rebrand that made customer-centric service its advantage while strengthening internal culture and boosting the bottom line. It soon had its highest-earning year and saw a surge in trust ratings.
If you’re not sure if your language is working for you, start with a quick audit. This could include looking at your website, emails, invoices, voice messages, social media and marketing materials.
Here are some questions to ask:
You could test different terms in your marketing to see what resonates best with your audience. Is there something that has a special fit for your brand? For example, the difference between ‘learners’, ‘students’ or ‘participants’ could make a big difference in perceptions of a training company. Whatever term you choose, be authentic. For example, using a term like ‘whānau’ could feel token if you don't have a strong and interconnected relationship with those you're referring to.
Once you've settled on your word choice, make sure everyone uses the same language when talking to customers and each other. Your team may feel more empowered and receptive if they're part of the process of choosing your approach from the start.
Your Business Mentors can help you consider your business goals and how your everyday decisions align with them. They bring an outside perspective and can spot inconsistencies you might miss. Regular check-ins with a Business Mentor can also keep you accountable and on track with tasks like refining your messaging. Best of all, your Business Mentor brings insights from their own network along with ideas about what works in your sector, whether that’s calling people ‘members,’ ‘partners,’ or something else. Explore Business Mentors NZ Success Stories for real-world examples.
The words you choose to describe your customers play an undervalued role in lifting the service standard and performance of your business. Even a small change in terminology can make a big difference to how you and your staff engage with the people you serve and how the world sees your organisation. Ready to get support in ensuring your business is at its best? Find your Business Mentor today.
If you need more tailored support to help your business thrive, Business Mentors NZ is here to help.
Across the country, we have a network of over 1,500+ Business Mentors with a enormous range and depth of expertise. Among them, is the perfect match for your business. If you’re ready to find your Business Mentor, start with our registration form now