We look at the benefits of ensuring customer loyalty. Although attracting new customers is all well and good, it is essential to look after those who have been loyal to you. Most sources estimate that it costs between four and ten times as much to attract new customers as it does to keep existing ones. Plus, loyal customers spend more than new ones.
In a world where your competitors are only a click away, customer loyalty really is the new marketing. Today’s customers have access to an endless amount of information about your business, and research shows that they’re ready and willing to stop dating around and stick with companies who go above and beyond to create a fantastic customer experience.
Cost of new versus old customers
Fred Reichheld, a reporter for Bain wrote in his report “Across a wide range of businesses, customers generate increasing profits each year they stay with a company. In financial services, for example, a 5% increase in customer retention produces more than a 25% increase in profit. Why? Return customers tend to buy more from a company over time. As they do, your operating costs to serve them decline. What’s more, return customers refer others to your company. And they’ll often pay a premium to continue to do business with you rather than switch to a competitor with whom they’re neither familiar nor comfortable.”
Today’s consumers are influenced by social movements and empowered by technology and new communication channels (such as social media), buyers are better informed, less patient, and more demanding than ever before. As one company ups the customer service standards it influences the expectations of consumers of customer service from all. Consumers are more in touch with what is just a gimmicky marketing campaign to flatter them. They expect you to go above and beyond to show your gratitude.
One way companies can maintain a more proprietary relationship with their customers is by opening the channels of communication to encourage feedback. It’s a truth that customers who feel heard feel appreciated. Even better than finding multiple ways to solicit feedback is using that feedback to make changes. Smart companies understand the feedback is a gift from their customers, especially the ones who have been with them for the long haul. Whether it’s asking about a recent experience with a product or service, or requesting information about what changes they’d suggest to improve the customer experience, soliciting and then acting upon customer feedback is a powerful relationship-builder.
Unified company interaction with the customer
By integrating a company wide help desk software, it can improve the readily available customer data on previous interactions with the product. The fluidity between departments collective information can only enhance the service that can be provided to customers each time they interact with the business. On the other side of things from an internal perspective, Tickets can be easily created and assigned to an internal support team by other departments.
The Support that your customers receive from your company can ultimately be the difference between returning customers who will refer others or customers that stay away and encourages others to follow suit. The Software your customer service representatives and internal support team can make a big impact on the service they provide. With the right resources in place, employees can see all the relevant customer interactions and history with the business and can enable a sense of personalization of their needs accordingly.