In today’s ultra-competitive business arena, more and more companies are focusing their efforts not just on attracting new customers, but retaining the ones they already have. After all, according to Gartner Group statistics, 80 percent of a company’s future revenue will come from just 20 percent of its existing customers. And research from Bain and Co. tells us that a 5 percent increase in customer retention can increase a company’s profitability by as much as 75 percent.
How then to improve customer retention? A critical key to cultivating long-term customer loyalty and retention lies in providing a better online customer experience. With that in mind, here are five ways to improve retention by enhancing the customer experience.
1. Consistently Exceed Customer Expectations
Today’s tech-savvy customers are informed, empowered, and have very high expectations for the companies they deal with. While the old sales motto, “underpromise and overdeliver” may have worked in the past, companies that subscribe to that strategy in today’s world of increased competition will find that it no longer works. Today it’s all about promising more and then delivering more. It’s about consistently going the extra mile, not just with respect to the obvious things such as products and services, but on seemingly little things such as always being prompt, positive and courteous.
In the online arena, this translates into providing multiple avenues of customer service, including online FAQ pages and live chat options, as well as designing pages that are easy to navigate and comfortable to use. By beta-testing your site to determine how well it will be received by the average user, you can identify its the pros and cons, and rebuild where necessary.
2. Use Social Media to Build Relationships and Trust
Customers want to know that they matter to the companies they do business with. And, in today’s socially connected world, a great way to show customers that they are important is to engage them through social media. This is not about brand promotion; it’s about giving customers a voice and a means to connect with and interact with the company and other customers. Through social media platforms such as Twitter and Facebook, companies can engage with fans and followers and stay up-to-date with what they are saying about the company.
Responding quickly and honestly to both good and bad comments shows transparency and helps build relationships and trust. Rewarding loyal customers with personalized emails containing coupon codes and other special offers also helps to build long-term loyalty and trust by making those customers feel appreciated.
3. Value Customer Complaints
While many businesses view customer complaints as annoyances, the truth is that those open expressions of dissatisfaction can be worth their weight in gold. Statistics show that 96 percent of unhappy customers don’t complain. They just quietly take their business elsewhere without giving the company they are deserting any explanation.
Of course, that silence seldom carries over into their other interactions, and customers that feel as though they have been mistreated by a business go on to share their negative experience with an average of 16 people (as compared to positive experiences, which only get shared with an average of nine people). So when a customer actually takes the time and effort to issue a complaint, they are giving the company an opportunity to discover what they are doing wrong or at least what they could be doing better. Winning a complaining customer back should be a major priority, as it will result in greater customer loyalty and advocacy.
4. Embrace Analytics
Image: Paul Jacobson
As analytics tools become more widely available, more and more businesses are leveraging the power of analytics to attract and retain customers by enhancing the customer experience. When customers use the Internet, credit cards, and social media, they leave distinct digital footprints behind. By utilizing analytics tools, companies can sift through all of this rich customer data to better determine what customers truly want and need. Armed with these insights into customer behaviors and preferences, companies can then tailor their products and services to better deliver on those needs and enhance the customer experience.
Analytics tools also allow companies to track and respond to customer behaviors in real-time. This capability can avert potential problems before they occur and enhance the customer experience through meaningful and relevant interactions.
5. Invest in a CRM tool
Customer relationship management (CRM) tools are complex computer systems which are designed to be able to keep track of specific data related to customers and transactions. Of course, while these systems are perfectly suited to providing businesses with the information they need to make the most out of their customer relationships, they can also be used to provide customers with the best possible experiences.
Of course there are other methods for improving retention by upping the customer experience. But the above five ways are especially effective in helping increase retention and loyalty by enabling companies to gain a deeper understanding of their customers and thereby engage and interact with them more effectively.
Featured Image: Pixabay
The post 5 Ways to Improve Retention by Upping the Customer Experience appeared first on MindTouch - Driving Customer Success with Self-service.