Happy customers spend more. Loyal customers also spend more. Any marketing manager will tell you this. These wisdoms can be supported by quantifiable results. Here are seven statistics about customer satisfaction and customer loyalty and what they mean for your business.
A 5% increase in customer retention rate has shown up to 25% more revenue.
Improving customer retention is not as complicated as it sounds. Through modern technology, it is easy to have an omnichannel presence managed centrally from anywhere. Through triggers and automation, chatbots can be set up to handle frequent and straight forward inquiries. Waiting times for customers are reduced, leading to a quicker problem resolution. This also helps you to avoid the following statistics:
2% of customers will abandon a brand if it doesn’t have a real-time customer support line.
Even if you can’t have 24h agent support, a chatbot does not need a break or time off. Given the customer inquiry is about non-complex issues, a resolution can be found quickly, and the customer will have personalized support. Zendesk comes with an advanced chatbot feature and also supports social media channels. Many customers prefer to interact through their usual channels, such as a social media messaging application.
Zendesk also offers powerful tools to personalize your customer experience, as:
49% of customers are likely to make impulse purchasing decisions after a more personalized experience with a brand.
Direct marketing is not a new trend, but modern technologies come with robust analytics features and predictive algorithms that make it easier than ever to tailor your brand experience to each customer without incurring high additional marketing costs.
Automation also leaves space and time for your support agents and marketers to build relationships with customers and up-sell. This ties directly into the second statistic for your business:
93% of customers who experience excellent customer service are likely to make repeat purchases or extend their subscription.
As humans, we are social beings and value relationships. This is true for interpersonal interactions as much as company-customer interactions. Customers who feel that they are valued by a brand reward the company with purchases. Engaging customer emotionally will only benefit your business:
Customers with an emotional relationship with a brand have a 306% higher lifetime value and 71% will recommend the company.
Add to this that customers trust recommendations from friends and family more than companies, and you have a recipe for successful customer retention and customer acquisition. Zendesk allows you to measure customer satisfaction levels after every customer interaction point and track them through time. You can quickly identify troubled customers and correct course before they abandon the brand. Similarly, you can identify happy customers and provide them with unexpected goodies, discounts, or other loyalty rewards.
Often businesses are discouraged from investments in improving customer satisfaction because of the perceived cost. As a result, many companies prioritize finding new customers over retaining existing ones. This is your opportunity to stand out from the competition because:
86% of buyers are willing to pay more for a great customer experience. They are more inclined to accept a price premium of up to 13% (as high as 18% for luxury goods and indulgence services).
If you are still not convinced that improving customer satisfaction won’t break the bank, the following statistic should:
Market research found that companies can reduce their customer care costs by a third after investing in better customer relationship management.
Closely measuring your customer satisfaction and customer loyalty will help you identify the root cause of an issue. Instead of quick fixes and constant patches, you can eliminate the problem for good.
With this food for thought, it might be time for you to revisit your customer relationship management strategy and technology. Remember: 80% of customers gained loyalty for a brand over time, built with experiences, excellent products, service, reviews, and advice. It is not too late to start today, but don’t delay till tomorrow.
If you’d like to learn more about Zendesk and CX solutions please feel free to contact Unwired Logic at firstname.lastname@example.org or click the “Learn More” button to be taken to our contact form.