Without devoted customers, a business is deprived of its sustenance. Hence, keeping these customers while continuing to attract more is the goal of all business owners. A product or service can prove profitable on its own merits. Though, focusing on customer experience innovation while providing such commodities will go a long way in marketing your brand.
What are the Benefits of Providing a Good Customer Experience?
Encourages Better Resource Utilisation
To provide better customer service, entrepreneurs need to take stock of their resources, such as machinery, technology, and employees. By casting a critical eye over areas where improvement in workflow is required, this results in more efficient processes that improve the experience for customers.
Reduces Negative Feedback
A business that will listen to their customers’ feedback and incorporate their suggestions will receive fewer complaints. When customers see that their feedback is taken seriously, they feel a stronger sense of loyalty towards the business.
Inspires Customer Loyalty
Salesforce research shows that 91% of customers surveyed would make additional purchases from the same company when they have a positive customer experience. The same survey found that 78% of customers were even willing to forgive mistakes if the customer service was excellent.
Improves Employee Morale
When happy customers interact with employees, it can lead to a more positive workplace which boosts the staff’s morale. Employees will be further motivated to go above and beyond for customers, thus developing a relationship based on mutual appreciation.
Reduces Marketing Costs
An emphasis on providing excellent customer care boosts the company’s reputation, especially as it forms an essential part of word-of-mouth marketing. Aside from attracting new customers, the business keeps its existing customer base. As research from Invecspro shows acquiring new customers costs five times more than retaining loyal ones, keeping customers saves money on marketing overall.
Offsets Charging Higher Prices
If customers are assured of excellent service each time they purchase a product from a business or use their services, they will remain loyal even while being charged more. In this Forbes survey, 58% of surveyed customers considered customer service more important than price.
With increased customer loyalty comes an accompanying rise in sales. Coupled with lower marketing costs, the business gains more in profit overall. In fact, past data from Bain indicates revenues of up to 4% to 8% above their market. The XM Institute has highlighted that 89% of surveyed companies that provided ‘significantly above average’ customer service reported better financial performances.
These benefits offer enough incentive for business owners to optimise their customer service experience. With innovation being key to a business thriving in their field, entrepreneurs should always look into applying this to their customer experience strategy.
6 Ways to Aid in Customer Experience Innovation:
Listen and Respond to Feedback
Customer innovation always begins with paying attention to whatever the customer has to say. By noting feedback, the business grows more aware of areas which need improvement. They can go a step further by incorporating customers’ suggestions into their work processes and thanking them for their feedback. In this way, they stand to gain more in the way of productivity, as well as building a better relationship with their customers.
Increase Online Presence
A company with a strong social media presence has more opportunities to connect with their customer-base. It will be easier to promote new products and receive direct feedback from consumers. Additionally, it mitigates bad press and resolve any concerns that are raised.
Reward Customer Loyalty
A good example of this would be an official loyalty programme, in which customers can enrol to earn credit or ‘points’ for each purchase, which can then be redeemed for ‘rewards’. Members can also be given exclusive access to certain offers or discounts.
Invest in Customer Success Specialists
A customer success specialist undertakes the onboarding of new customers and guides them through making the best use of what the company offers. Not only does this ensure that the business earns revenue from the increased use of their services, it also instils confidence in the customer to keep choosing them over other competitors.
Automate Online Processes
Self-service platforms help customers save time. This is because they circumvent the use of a call centres or waiting in line to speak to a customer service representative to express their needs.
An online form can be set up on the company’s website to process claims or submit feedback. A chatbot can also be incorporated into the FAQ section to answer the most common queries from customers.
Proactive Customer Service
Customers can opt to receive feedback forms through email or leave suggestions as voicemails if they have completed a call with the company. Customer service representatives can also check in with individual customers to follow up on the quality of service they received.
With a solid emphasis on customer experience innovation, businesses can expect greater returns on their output alongside increased longevity. Innovation indicates that the business is intent on keeping up with changing times and, therefore, its customers’ changing needs.
Taking more steps to grow with their consumer base, a business has a greater chance of breaking into new markets. Hence, a ‘customer first’ approach may prove to form the business’s lifeline in the long run.