10 Key Statistics You Should Know About Retaining Customer Trust
It sounds simple at first. Provide quality customer service and you are guaranteed lifetime customers. However, the variety of brands makes it harder to gain consistent customer loyalty.
As such, it is important to think of how to keep customers coming back. Reverting to standard loyalty programs are not as effective anymore. If you want to keep your customers from cheating on you, check out these helpful statistics.
It is natural to think that the customers who consistently interact with your brand are the most loyal. However, this is a huge myth. Actually, some of the best customers are spending the rest of their disposable income at other brands.
The lost sales issue is rooted in brands measuring loyalty incorrectly. Most retailers or brands will measure loyalty according to the amount of money spent. As a result, brands are not targeting their audience effectively are likely losing millions of dollars.
As such, if you want to improve your customer retention, you have to measure customer loyalty differently. You have to look at their spending habits, not just how much they are spending.
You also have to learn why customers are shopping elsewhere. Reflect on your retention methods and see you can encourage customers to shop with you.
It probably goes without saying that good, quality customer service is key to high retention rates. American Express found that people were willing to spend 17% more with a company who had good service. However, the stakes are higher for companies with poor service.
Good customer service is how to keep your customers and cultivate an even larger and more loyal base. The more satisfied a customer is, the more likely they will rave about your brand to others. In this way, your customer base can also become a valuable marketing tool.
As such, it is important that you prioritize top-notch customer service. Do your best to deliver service in a timely manner. Operate by the customer’s timeline and try to make the service as personalized as possible.
Make sure you establish strong personal connections with your customers. In turn, they will be glad to advocate for you to new customers.
Thanks to the rise of the internet, the way people interact with brands has drastically changed. The internet opened up a Pandora’s box of privacy and misinformation. Not to mention, the massive outflow of branded content has made consumers distrustful of businesses.
As a result, customers are bypassing sales representatives in favor of the opinions of our family and friends. Now, we turn to websites like Yelp to help us make our purchases.
So how do you get customers to trust you when they prefer helping themselves than talking to you?
A huge tip is to cultivate consumer happiness by creating a good customer experience. To do this:
- Understand your consumer’s goals and needs
- Make the purchasing process more efficient
- Continue to invest in customer success by tracking sentiment
- Maintain relationship and turn customers into advocates
A notable characteristic of customers in 2019 is that they desire to solve their own product problems. Half of the customers want to be able to address service issues on their own. On that same note, 70% of customers expect company websites to have some sort of self-service option.
It boils down to the fact that customers simply have higher expectations. Thanks to the internet and digital media, customers demand answers as quick as possible.
The last thing customers want is delays. As much as possible, they want fast response times. Otherwise, they might choose to visit another brand.
Here are some tips to improve your customer self-service features:
- Create a Most Popular FAQ Section
- Utilize pictures and videos as much as possible. Remember, people are largely visual people.
- Constantly update your information
- Use tags and keywords to simplify search result pages
- Make the self-service options mobile-friendly
A huge reason customer’s lack trust in a company or brand is if it misuses a consumer’s personal information. Again, thanks to the internet, the flow of information is more complicated than before.
Consumers are not always aware of how much their life ends up online. And the last thing you want to do is mishandle that information in any way. It’s a sure-fire way of marring your brand’s image.
As such, it is important to prioritize transparency with your customers. Data management is no easy task. Mistakes and errors are bound to happen.
It is always better to be open and honest about your data principles. This way you have a lesser chance of getting mixed in with shady characters in your industry. Moreover, you are in a better position to establish trust with your customers.
Like mentioned, one of the most traditional ways to build customer loyalty is through loyalty programs. And to a degree, they are. A 2016 study discovered that customers in a loyalty program generated 12-18% more revenue than non-members.
However, loyalty programs have had a few short comings. In particular, most loyalty programs suffer have extremely low engagement. This boils down to the fact that majoirty of loyalty programs seem to offer the same thing: discounts.
The fact of the matter is is that discounts are not cutting it anymore for customers. To have a successful customer loyalty program, you have to go above and beyond to fulfill customer’s expectations.
Whatever experiences you create for the loyalty program have to be completely unique. Moreover, they should further enforce your company’s values. This is how you establish loyalty in a loyalty program.
Discounts are great, but they don’t engage your customers.
While independence is a priority, customers also prioritize personal connections. As a matter of fact, many consumers expect personalization to be a component of brand messaging.
Personalization is an effective way to bond with customers in this digital age. Without it, the repercussions could be serious.
For example, 90% of consumers said that brand messages that are not relevant to them are annoying. This results in consumers leaving a specific brand and switching to a new one.
As such, personalization should not be taken lightly. It goes beyond simple demographics and emphasizes a consumer’s wants, goals, and needs. That all starts by taking a closer look at insightful data.
You can do this by asking these simple questions:
- Is the product or brand relevant to consumer interests?
- Is the product unique or something on the market already?
- Does the product tell a good story?
- Does the product elicit positive emotions?
If you aren’t communicating with your customers across multiple platforms, you aren’t engaging them enough. With how diversified digital media has become, there is no way you can reach everyone with one platform.
You have to remember that every platform service a variety of target audiences. If you want to expand your reach, you have to operate on multiple channels. Moreover, keeping multiple channels open can help you stay on top of trends and ahead of your competition.
However, having multiple channel servicing is not enough. In addition to having different channels of communication, customers also want consistent communication.
87% of customers said brands need to spend more time providing a consistent multichannel experience. It is good to have multiple channels but that does not negate having quality service on every channel. If you plan on having an omnichannel set up, make sure it is working efficiently and effectively.
Although customers seem to prefer independence, it does not mean they don’t expect any gratitude. Unfortunately, 68% of customers feel neglected by businesses or brands. You don’t want to exemplify to your customers if you want to keep them loyal.
As such, don’t be afraid to express your gratitude to your customers. However, the key is, again, personalization.
Customers, men and women alike, appreciate personalized acts of gratitude. A simple idea is to send out personally written thank you notes. If you want to elevate your gratitude game, send out personalized gifts with some of your premium products.
It makes them feel valued. In turn, they are likely to develop a stronger loyalty to your brand. Moreover, personalized acts of gratitude are sure to keep customers returning to your brand.
Sometimes, companies spend more money trying to find new clients. This is a mistake. Why would you spend more money finding clients instead of nurturing the customers you already have?
Customer retention is actually less costly than acquisition. It also can be a huge force behind customer acquisition. Remember the more satisfied the customer the more likely they are to share your brand with others.
Moreover, customer retention is helpful in projecting financial growth. A solid customer base allows you to make more educated budgetary plans.
That is not to say that you shouldn’t allocate some resources to new customers. Instead, you have to be able to strike a balance between the two. You need new clients as much as you need to be retained clients.
Customers are part of the fuel that drives a successful brand. That being said, it is important to find ways to keep customers coming back.
Building customer loyalty and retention can be intimidating. However, it does not have to be.
At the heart of it, building loyalty is a matter of understanding your customer’s values. From beauty boutiques to enamel pins custom businesses, you always aim for your customer’s values. Reflecting their beliefs back is a sure-fire way to establish a bond with your customers.
At the same time, customer loyalty is also hinged on a few other things. When you start drawing out your new marketing strategy, do not forget to include these:
These are simple but effective ways to build customer trust every day. These are great cornerstones of marketing that will ensure your brand withstands the evolving digital media landscape.
So, there you have it. Customer service is a lot more demanding than it once was. Hopefully, these ten statistics helped put things into perspective for you.
What are some of your experiences with customer loyalty? What methods have worked for you? Please share them with us!
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