The Value of Happy Customers
The following information is provided courtesy of Meredith Foster, Marketing Coordinator at Communicate By Design-X
Trends have experts predicting that by 2030, consumers will control the business landscape more than ever before. Shifts toward this phenomenon are already happening. Social media has given consumers the ability to directly interact with and influence brands, which means now more than ever, customers are king. Understanding the new power of a customer can optimize business growth now and in the future. Here’s why you should focus on customers and their happiness.
Happy Customers = Repeat CustomersStatistics show that 80% of a company’s revenues come from just 20% of its customers. Tailoring your practices to meet your customers’ ever-evolving needs can be the ticket to lifelong brand loyalty. Which means lifelong repeat purchases and sustainable revenue over time.
Happy Customers = Zero Cost InfluencersCreating a happy customer doesn’t just mean repeat purchases. It can also lead to influencers (or brand advocates as we like to call them) which is one of the most valuable forms of earned media. In today’s social marketing climate, consumers can support brands they care about via word-of-mouth promotion on social media. Creating the most authentic advertising that doesn’t cost the company a dime.
1 Bad Experience = 12 ExperiencesDid you know that studies show it takes 12 positive customer experiences to make up for the damage of one negative one? That amounts to a lot of extra effort and time (that many of us don’t have) to rebuild trust in the eyes of your audience. Historically, unhappy customers are more likely to broadcast their experience, which means negative press, which degrades your value in the eyes of current and future customers. On the flip side, prioritizing excellent service can help prevent negative customer experiences and save you time and effort.
1 Unhappy Customer = 26 Silent Unhappy CustomersUnhappy customers that don’t voice their concerns can actually be more damaging to a company than those that write negative reviews. Statistics show that for every customer that complains about a negative experience, 26 also had a bad experience and will remain silent. That means 26 customers who won’t come back. 26 customers who are negative influencers, making it harder for sales and marketing efforts to be effective.
Excellent Customer Service = Increased ValueCustomers will factor in a company’s customer service into their overall satisfaction. If a company has excellent customer service, consumers will choose them over competitors, even if their products are comparable. Additionally, if your customer has a great shopping experience, they will see you as more valuable and be willing to pay more for it. Over time, this can increase your revenues and the total value of your company.
Put it in ActionAll of these benefits that come from creating happy customers take time and work to achieve. The first step is prioritizing a customer’s experience. This means that the customer service team and customer support teams are just as crucial to winning new customers and growing them as the sales team. Therefore, equipping them with the proper training is a must. It also means understanding your customer’s experience and optimizing it is just as important as research and development of new products or services.
Communicate By Design-X is a results-driven marketing firm with a 25 year legacy in the DC Metro Area. We help organizations achieve their business goals with smart marketing strategies and award-winning creativity. Learn more at https://www.cbd-x.com/