The cost of acquiring a new customer is on average 5 times higher than the cost of retaining a customer and is therefore only a partial success. In the retention phase, in which customers gain initial experience with the product, the aim is to turn new customers into long-term existing customers. At various contact points, it is important to increase the customer lifetime value and reduce the churn rate (churn rate). Customer satisfaction is the key to customer retention. Their increase is therefore the focus of this phase of the customer journey.
Customer complaints and enquiries
Good service is important to modern customers – according to a survey by management consultancy PwC, 4 out of 5 consumers would even pay for it. The requirements for a successful customer journey in all phases are becoming more and more complex with increasing customer demands. For companies, good service is a challenge and an opportunity for long-term customer loyalty. They need to be present on different channels and offer customers a good experience in order to strengthen their position against the competition in the long term.
Every year, more than 300 million parcels are returned in parts of Europe, because online retail in particular is more likely to make bad purchases. For companies, every return is not only associated with costly processing, but in the worst case also marks a lost customer. If there is a return, fast processing and a satisfactory solution are therefore all the more important in order not to lose the customer.
Determine Customer satisfaction
According to a study, every fourth company does not collect data on customer satisfaction. However, customer feedback fulfills important functions for establishing a long-term customer relationship:
- Customers feel valued and taken seriously – in the best case, this strengthens the bond with the brand
- Companies collect concrete suggestions for improvement for product development or the sales process
- Companies can respond to bad feedback individually
However, this requires a systematic recording of customer satisfaction at several contact points.
Provide additional information
In a study, 91 percent of customers said that a positive experience after a purchase increases the likelihood of a repeat purchase. By providing useful content that aligns with the customer’s purchase, businesses can build trust and seize opportunities to increase sales.
Best practices in customer experience means that leaders think differently about their business approach. Brands build stronger customer experiences through data, measurement, and loyalty strategy, you can take steps to deepen customer relationships as much as possible to take your business to a whole new level.
A Wider Perspective
Open your eyes and look at customer data from a wider perspective. Data is the core asset that enables brands to connect with customers, and it’s time to look at data in a different way. It is imperative to abandon the strategy of collecting large amounts of data on products and buying cycles. Approaching data from a customer experience perspective will encourage businesses to take an alternative approach to data collection, interpretation and activation. To make customer experience more valuable, brands should master the fluidity of the marketing funnel, activate media communications, expand content strategies beyond the website ecosystem, and implement new technologies for customer experience.
Use measurement as a catalyst for change
In a competitive customer experience economy, shifting the focus of a measurement framework from what can be measured to what should be measured can make a big difference. An effective measurement framework is able to measure the impact of activities across all sectors on the business. Leverage the commerce experience to drive the loyalty of a new generation of consumers. The first 20+ years of global digital transformation focused on convenience: using technology to complete everyday tasks faster, easier, more intuitive and more personal. While these principles are sound, the industry is shifting, and the industry is starting to focus more on relationship building. The industry has entered a new era of loyalty, and the establishment of loyalty is no longer only based on points and rewards, but long-term goodwill and appeal.