Put simply, high trust is a dividend; low trust is a tax. In fact, in our increasingly low-trust world, trust has literally become the new currency of our global economy. — Stephen M.R.Covey
Digital innovation has transformed today’s business world: it has changed business environment and performance, as well as the whole landscape of customer choice. Today’s customers are more demanding, knowledgeable and selective, and the ways how they connect with brands nowadays largely define the key dimensions that shape up business relationships of the new digital era. >>>
Acquiring new customers is important, but retaining them is more profitable. In order for a business to survive, it needs money. To make money, you need customers. More specifically, you need happy and loyal customers. If your business focuses on customer satisfaction, it is more likely to keep these customers happy and returning.
Gaining a new customer is similar to making a new friend, as it is exciting and rewarding. Just because you’ve made a new friend, you wouldn’t ignore your old friends. The same applies with customers. The long-term customers add more value in the long run, than newer/single-deal customers. So, if we can keep a larger percentage of the long-term customers happy, we end up with more profitable and predictable customers. >>>
To connect with new customers don’t try to get inside their heads. Get inside their hearts. Create an emotional connection. – Bill Quiseng
Some of the world’s most successful business leaders know that attracting customers and winning their loyalty isn’t merely about the product or service. It’s more about offering an experience that creates an emotional connection between the customer and the brand. In fact, the Temkin Group found that while all three components of customer experience – success, effort, and emotion – have a strong effect on loyalty, emotion turns out to be the most important element.
When companies connect with customers’ emotions, the payoff can be huge. According to the Harvard Business Review, consumers who are emotionally connected with a brand are anywhere from 25% to 100% more valuable in terms of revenue and profitability than those who are “merely” highly satisfied with it. >>>
Think of something you like to do regularly, whether it’s jogging, reading, or eating ice cream. What keeps you coming back? Chances are it feels good, and the emotions you associate with the activity make you want to do it again. In short, positive emotions lead to loyalty.
It seems like a simple equation, but how a brand should go about inspiring positive emotions in customers is a complex question. Emerging studies in behavioral science are telling us more and more about the relationship between emotions and decision-making. In the meantime, there are a few simple things any brand can do to spark positive, loyalty-inspiring emotions in customers. >>>
It’s probably needless to say that loyal customers are the biggest assets of any business. Studies show that only a 5% increase in your loyal customer base can result in increases of revenue and profits up to 85% or more. Take a look at some more customer loyalty stats that might surprise you:
The cost of bringing a new customer up to the same level of profitability as an old one is up to 16x more. (SocialAnnex)
Existing customers are 50% more likely to try new products, and spend 31% more than new customers. (The Nielsen Survey)
68% of Millennials say they wouldn’t be loyal to a brand if it doesn’t have a good loyalty program. (The Bond Loyalty Report)
62% of Millennials report that brand engagement is more likely to make them a loyal customer. (USC Dornsife)
62% of consumers don’t believe that the brands they’re most loyal to are doing enough to reward them. (ClickFox)
So how much do you care about your loyal customers? And what’s even more important – do your customers really know how much you appreciate them? >>>
In any business existing customers leave and new customers arrive. However, there are customers who are the backbone of any business, they are the loyal customers. According to Accenture 28% of consumers are loyal to their providers and brands, which is why all effort should be taken to keep such customers and increase their number.
However, businesses focus on attracting new buyers and often forget about those customers who have been staying with them for a long time being loyal to their brands. These consumers feel frustration and leave as soon as they find an alternative. In this blog post I have described 5 reasons why businesses lose their loyal consumers. I hope that better understanding of this problem will help your business to retain loyal customers and provide a better customer service to them. >>>
There are those who still believe that the Internet has taken all the ‘friendly’ out of today’s commerce, but for the most part they would be wrong. In fact, because everything is more accessible (sharing, reviews, product descriptions, company backgrounds and even BBB ratings) the web has enabled much more communication between customers and the businesses that serve them.
It really comes down to a matter of choices: the ways in which you reach out to consumers and how they decide to provide feedback. Therein lies the rub. If your customer perceives your online presence as unapproachable and resistant to their issues, easily posted bad reviews may very well interfere with your enterprise. >>>
According to the 80/20 rule (the Pareto Principle), 80% of business comes from 20% of customers – in other words, a small group of your customers is generating the bulk of your revenue. That’s why acknowledging, respecting and rewarding these 20% is imperative. After all, loyal customers are the biggest assets of any business.
In fact, customer loyalty is the key determinant of an organization’s success, yet many companies still keep focusing more on sales and customer acquisition. Getting new customers is great and necessary, but keeping them coming back on a regular basis is gold. >>>
In a huge variety of brands offering similar products or services, how do you separate yours from the competition? Since price becomes much less of a deciding factor when choosing between your brand and competitors, caring for your customers and nurturing relationships with them has never been more important in growing a successful business.
Zig Ziglar once famously said, “People don’t buy things for logical reasons, they buy for emotional reasons”. Statistically, 75% of buying experiences are based on emotion. It means that in order to attract and keep customers you need to do more than simply introduce them to your business or products, you need to create and keep an emotional connection with them. >>>
We’re in an incredibly fast paced and ever changing world where consumer choices are rapidly expanding and customer expectations are constantly increasing. Surprisingly though, how many business owners still need to be convinced that improving customer service and customer experience is essential and can lead to increased customer retention, brand loyalty and more revenue.
On the other side, just a single poor customer experience can easily break customer relationship and have a negative impact on brand reputation and the bottom line, as the voice of the customer has never been louder. That’s why downplaying the importance of customer service and customer experience is no longer an option. >>>