Why Does Customer Management
Need Special Attention?

Introduction:

Our customers provide the most straightforward path to success, treat them well, and they will stay with you for a long time. Therefore, we have compiled this article on the art of customer satisfaction.


[1]Due to the recent technology and digital transformation boom, an entire “customer revolution” has occurred, and a new breed of informed and socially engaged Customer 2.0 has appeared.

No longer is price or product the reason a customer does business with you.

Today, it’s all about the customer experience.

You need to go above and beyond expectations and deliver a great experience to be competitive.

But, how?

This article will share how a Customer Relationship Management (CRM) system can help you improve the experience you provide to your customers.

The Dawn Of The New Customer

The tech-savvy Customer 2.0 relates to all things digital. It starts its purchasing process online, chooses to conduct all research digitally, seeks feedback through social media and prefers emails to phone calls.

Pinpoint Market Research and Anderson Jones found that 93% of buyers begin their buying process with an internet search. As a result, they can choose products, services and even people to do business with.

But above all, Customer 2.0 – wants to have an experience!

There’s data to back this up, too, as an astounding 86% of buyers are willing to pay more for a great customer experience.

So, how can you adjust to meet the expectations of such a demanding customer?

Customer Experience Is A Top Priority

In a survey by Customer Management IQ, 76% of customer management executives and leaders thought that customer experience was a high priority to their business.

Today, according to Gartner, these numbers have grown, and it is already 89% of companies that are determined to compete mainly based on customer experience.

PwC’s Digital IQ survey claims that 25% of businesses expect digital enterprise investments to create a better customer experience.

Are you convinced yet?

OK, one more statistic to nail the reign of the customer experience.

Furthermore, a study published by Walker states that customer experience will soon be the leading brand differentiator for a buying decision, leaving behind such criteria as product and price.

So, what do you have to do to create an exceptional experience for your customers?

You have to be proactive!

This means anticipating and catering to customers’ current and future needs. To do that, you need to put yourself into your customers’ shoes and walk a purchase mile with them.

Fortunately, there is technology available to help you proactively accept the challenge called Customer 2.0. And the best technology on the market is CRM software.

[2]Why Pay Attention To Your Customer Service? Because It Will Impact Your Revenue

Enterprises must pay attention to the quality of customer service they offer because:

  • Good customer experiences boost repurchase probability and long-term loyalty. Customer loyalty has quantifiable economic benefits as measured over three dimensions: willingness to consider another purchase, the likelihood of switching business to a competitor, and recommending to a friend or colleague.
  • Poor customer service experiences lead to increased service costs. Moreover, the price of failing to meet these expectations is high: 75% of consumers move to another channel when online customer service fails, incurring costs.
  • Poor customer service experiences risk customer defection and revenue losses. Customers who have poor service experiences – estimated at 30% – are at risk of defecting, even if they do not complain – and the revenue impact of churn can be easily quantified.
  • Poor customer experiences can quickly damage the reputation of your brand. Customers who are disappointed at the service they receive are quick to voice their disappointment, which is amplified over the social channels and can erode brand value. Forrester’s Social Technographics® ladder shows that 68% of B2C consumers and 80% of B2B customers fall into the “spectator” category, consisting of people who read negative comments posted on social media sites.

An increasing number of enterprises recognize the importance of focusing on delivering customer service experiences in line with customer expectations to keep their customers satisfied and loyal to their brand. For example, data from a recent Forrester survey conducted in conjunction with CustomerThink shows that forward-looking customer service organizations:

  • Focus on improving the customer experience as a top priority. For example, 40% of respondents report that “improving the customer experience” was their most important customer service goal. In contrast, only 12% of respondents rated “reduce customer service costs” as their top goal, and only 3% rated “improve agent productivity” as the most important goal for their operations.
  • See customer service as a differentiator. For example, 20% of the respondents reported that “creating a competitive advantage” was their most important customer service goal; 20% said it was their second-most-important customer service goal.
  • Believe that customer service can be a profit center. For example, 17% say that “selling more products and services to existing customers” was their organization’s most important goal.

[3]Ways Customer Satisfaction Correlates With Business Results

Revenue Increases With Good Customer Service.

Revenue should dictate every business decision. Companies measure success or failure based on money in minus money out. Profitability is king, regardless of whether it happens on day one or day 1001.

Happy Customers Build A Better Reputation.

A favourable business reputation leads to higher growth. A good business reputation attracts customers, investors, partnerships, and employees. When seeking to improve reputation, start with excellent customer service.

Retention Correlates To Customer Satisfaction.

Customer retention carves the most apparent path to business success. Therefore, keeping current customers happy results in more stable revenue and more accurate predictions. In addition, when you master attracting customers and retaining them, it sets a solid foundation for your entire organization.

Churn Decreases With More Customer Care.

Churn measures the number of customers who leave a business after purchasing. It provides a relatively cut-and-dry measurement of satisfaction. Customers churn when they’re unhappy.

Cltv Improves With Better Customer Service.

CLTV (customer lifetime value) reveals the amount of money a customer potentially brings to a company throughout their engagement. CLTV correlates directly with revenue.


Conclusion:

The lifetime value of a client is critically important to see the value of each client. I hope that the article has been helpful in your client retention efforts.

Article compiled by RapidPage.ca

Article Reference Links:

  1. https://www.forrester.com/blogs/12-10-21-why_pay_attention_to_your_customer_service_because_it_will_impact_your_revenue/
  2. https://www.forrester.com/blogs/12-10-21-why_pay_attention_to_your_customer_service_because_it_will_impact_your_revenue/
  3. https://www.groovehq.com/blog/why-customer-service-is-important