It’s the question on every business owner’s mind: What’s the secret to generating more profits? Most companies would answer customer acquisition, arguing that the only way to boost your bottom line is by onboarding new customers. Those companies, however, would be wrong, as the real money lies in customer retention.
Consider this: According to research from Retention Science, the probability of converting an existing customer is 60 percent to 70 percent, while the likelihood of converting a new prospect is only 5 percent to 20 percent.
The truth is that existing customers would rather pay a premium to continue to do business with you than switch to a competitor with whom they’re neither familiar nor comfortable. What’s more, satisfied customers tend to buy more from you over time and refer others to your company, bringing even more revenue to your business.
If this is the case, why do so many companies focus their efforts on acquiring new customers? For one thing, keeping today’s customers happy is difficult, as they have no qualms about trading you in for a newer model, especially if they’re subject to poor service. In fact, 37 percent of consumers say they will switch companies after a single poor customer service experience, according to the American Express 2014 Global Customer Service Barometer. What’s more, it takes time and money to develop and nurture close relationships with customers.
While cultivating strong customer connections is difficult, the good news is it’s not impossible. The best place to start is simply by offering better customer service. Below are three ways your company can build customer loyalty through superior customer service:
- Give customers options: People love options, especially when it comes to communicating with a company. One customer, for example, might prefer speaking directly to a representative via the phone, while another favors communicating with an agent via email or live chat. By supplying your customers with a wide variety of communication channels, you give them the option of choosing how they will interact with your brand according to their own dictates.
- Make it easy: The runaround: it’s something almost every customer has encountered. You call into a business with a simple question only to be rerouted to three different representatives—none of whom seems able to solve your problem. Make doing business with your company easy for customers by ensuring that all customer-facing employees have access to all the information they need to effectively serve customers.
- Use your feedback: When you get feedback from existing customers about your product or service, pay close attention. Are customers, for example, confused about a certain product feature or frustrated by the disorganization of your website? Whether it’s positive or negative, use feedback from customers to improve their experience and show them that you value their opinions.
These are just a few of the ways improving customer service can build loyalty and turn your customers into brand evangelists. How do you go the extra mile in your business?
Envision can help you put the tools in place to create lasting customer loyalty. Contact us to find out how.