The customer is always right, the importance of customer service. No business person likes to hear the words “in the red.” Those three little words have the ability to not only ruin a businesses’ day but also have long standing effects on the perception of a business. So how does big businesses satisfy the bottom line but increase it? The answer: Customer loyalty.
An overwhelming majority of profit– 65% to be exact– comes from returning customers. In fact it costs five times more to acquire a new customer then to satisfy a repeat consumer. Research shows that by increasing customer retention a business not only increases profits but they can save on marketing costs and improve their service as a whole.
Improving the quality of a product or service is one of the main reasons why some companies succeed and it also is one of the main reasons that companies fail. 32% of people surveyed say that they will stop using a product or service after one bad experience. That 32% of the client base can be the reason that a competitor takes the lead in the battle for success.
Customer Loyalty Starts With Customer Understanding
Not only is increasing customer loyalty beneficial for innovation it also has major impacts on profit. 80% of consumers are willing to pay more for a product that provides them with a better customer experience.
And the biggest secret of Customer Loyalty is that it is not hard to enact! There are four very simple steps.
- First, simply understand who your best clients are. This is imperative so you can assess company strengths.
- Second, investigate why a customer left. It is as important to identify weaknesses as it is strengths.
- Third, listen and learn from customer complaints.
- Finally, offer many options when it comes to customer service. At the end of the day profits are people, and people want to feel appreciated.
Check out this helpful infographic to learn why the customer is always right.
