Creating the Loyalty Effect by Creating Great Customer Experiences
We’ve grown up with the idea that the customer is always right, meaning that the customer is the final judge of what constitutes a good product or service, including the level of personal attention they receive. While some customers have taken this maxim to the extreme, milking a company for everything they can get while dangling the threat of taking their business elsewhere, most individuals are just glad to have their questions answered within a reasonable time frame. Simply letting them know that they’ve been heard can have a huge impact on their impression of your brand. More importantly, these loyal customers are your brand’s bread and butter in the long run, so paying attention to them is of the utmost importance.
Gartner found that top marketers were focused on delivering and investing in a streamlined customer experience. The research revealed that digital marketers were spending almost as much to retain customers (45 percent) as they do to gain new ones (55 percent). Customer experience was the top marketing technology investment, averaging 18 percent of the total marketing budget last year, and is ranked the top innovation project for this year. However, 43 percent of marketers say connecting with customers is their biggest challenge, more challenging than competition or revenue growth. In other words, retaining loyal customers is difficult, but it is also extremely important for company revenue and success. Considering loyal customers offer more revenue for a brand in the long run than new customers who easily churn do, then it bodes well for companies to invest heavily in their loyalty incentives and efforts.
As a rule of thumb, don’t wait for your customers to ring alarm bells before you decide to give them the services they want. Understand their customer journey and how they interact with your brand. Find out what they want before they start complaining on social networks about your company. Most importantly, realize that your goal is to keep your customers loyal, not to only win new customers. Fancy ads and slogan budgets won’t keep your existing customers with you, but good service will.