You think the most important metric for your business is sales, right? Well, not anymore. In this era when businesses are finding it harder to differentiate on product or price, strategies for acquiring new customers should also change. You giving Rs 100 off on the first order will only get you that customer once.
He is going to your competitor when they offer the same or a better deal.
And that would mean you just drained the acquisition cost plus your discount! I have friends who have literally had months of free food, thanks to “innovative” acquisition strategies of some businesses. The only thing more powerful than sales in today’s world is building loyalty.
You may be adding million new users every month, but how many of them are repeat purchasers? How many of them are recommending their friends to buy from you? Did you even know what was a thing?
The only thing differentiating an Amazon and a Flipkart, or an Ola and an Uber today is customer experience. When price and products are nearly the same, the only way businesses can create a differentiation is by superior customer experience.
In case all this wasn’t good enough, here are 18 reasons why caring about customers is more important than sales:
Acquiring a new customer is more expensive than retaining an old one. It costs 5 times as much to acquire a new customer.
Losing an acquired customer is not just losing revenue but also loss of the money you spent in sales and marketing.
Your present customers are your best lead generators. They refer new people who come at a fraction of your acquisition cost.
It helps you kickstart the holy grail of any marketing campaign : word of mouth. Wouldn’t you also want to tell everybody about that great restaurant you had dinner in? Offer an unbeatable experience that compels your customers to do the same.
It reduces the chances of the gravest nightmare of any business — negative viral post on social media.
Without solid retention, acquisition growth gets expensive.
The probability of selling to an existing customer is 60–70% while new customer is 5–6%. You do the math.
Not only will caring about existing customers make them happy, but you too will derive more value out of them. Here’s how : You spend 100 bucks to acquire a new customer but he only transacts once for 20 bucks. Compare that to him transacting 10 times over a year. LTV is an important metric for any business.
It will build brand awareness.
It has a great marketing angle. Put up testimonials on your website, share with the world the amazing experience your customers are having. A real customer story works best.
Over half of young people aged 18–34 say they trust online reviews more than opinions of friends and family. Which means your prospective customers are reading and trusting the opinions of your present customers online. So go do the needful!
88% of the shoppers incorporate reviews in their purchase decision.
On average, loyal customers are worth up to 10 times as much as their first purchase. Now that’s a lot of sweet, sweet cash that you could be making (read: 10 times as much as you make today) by just caring about your present customers.
News of bad customer service reaches more than twice as many ears as praise does, for a good service experience². That is a serious case of wildfire that you should do everything in your power to prevent.
In 2011, 7 in 10 Americans said they were willing to spend more buying from companies / brands they believe provide excellent customer service.
70% of buying experiences are based on how the customer feels they are being treated.
91% of unhappy customers will not willingly do business with you again.
Happy and satisfied customers also lead to a happy and productive work environment for employees.
In fact most businesses already say that they’re customer centric, but how many are actually listening to their customers? Focus group studies, surprise audits and your annual surveys give you a very minuscule part of what your average customer may be experience on an average day.
In this day and age when your customers are themselves talking about you on multiple channels, you don’t have a dearth of data. Mine all the opinions and combine with the internal data you have in the form of feedback forms, mails and calls. Use this data to actually be customer centric. Let not a single moment that your customer spends with you be average, take everything to the next level.
Want to find out if you actually connected to what your customers are saying? We will send you a mail at the end of everyday for 15 days, summarising all the opinions your customers wrote about your business across the web. At the end of 15 days, we’ll send you a report with some interesting insights. Reach out to us here and we’ll have your business onboard onto Survaider right away!