In an increasingly competitive world, it’s become much more difficult and expensive for companies to acquire new customers. Depending on industry, it can be 5 to 25 times more expensive to acquire new customers than retain existing ones. Returning customers drive growth and are the foundation for a profitable business, yet so many companies fail when it comes to customer retention and loyalty. They are so focused on short-term profits and acquiring new customers that they neglect existing customers, often losing them without knowing, until it’s too late.
It can be hard to keep up in today’s fast-paced world, technology developments have set the bar so high and customer expectations are continually rising. With so much choice available, 78% of customers will jump ship and switch brands following just one bad experience, and 83% say that the customer experience (CX) is a major factor when selecting a brand. A good CX drives loyalty. Businesses must work hard to earn their customers' trust and loyalty by truly differentiating themselves and providing a consistent CX at every interaction.
When new customers come onboard, they must be nurtured - not ignored or overlooked. It’s important for a business to find out more and develop innovative ways to delight them, building trust and giving them reasons to become loyal. Making decisions on your customers purely based on gut instinct and intuition though is dangerous and can lead an organisation in the wrong direction. Fortunately with so much data available, analysing customer behaviour and digital footprints to enable a more personalised experience, is now much easier.
Quantitative data is necessary in order to assess buying habits, page clicks etc but to really connect with customers on an emotional level, analysing qualitative customer data is a must. Gaining customer insights gives context around customer behaviour and allows a deeper understanding into what your customers want and why they make the decisions they do. Using both sets of data together, you can gain an intimate knowledge of your customers, learn to anticipate their needs before they do and provide an exceptional experience that will keep them coming back time and time again.
At IIC, we carry out in-depth, rigorous assessments on customers, uncovering hidden insights that enable businesses to provide a first-class CX, which in turn builds customer trust and loyalty. As the chart shows in 'From the IIC assessment archive' below, providing an outstanding CX and customer loyalty go hand in hand.
Congratulations to all of our clients who achieved exceptional results in their CX assessments last year, you can see the full list below in 'The IIC accreditation'.
Enjoy the rest of the read and please feel free to pass this email on to any colleagues or industry folk that may be interested in improving their CX. We would be delighted to help.
Tony Barritt, Managing Director, IIC
Developing a healthy and successful workplace culture is crucial in delivering the best possible customer experience (CX). The workforce is changing at a rapid pace and in order to cultivate a collaborative, creative and successful working environment, businesses must ensure it is diverse and inclusive.
At IIC, we focus heavily on employee engagement during our CX assessment process and have been approached by numerous clients to investigate and include 'Diversity and Inclusion' (D&I). The benefits of a diverse and empowered workforce, who feel they contribute to the success of the business can be a huge competitive advantage and provide greater appeal to both potential employees and customers.
We are delighted to be attending and supporting Braxton UK at their free D&I workshop, hosted by PIMFA on 27th February 2020. If this is something that interests you, and you would like to learn more about D&I in the workplace and how it impacts your CX, then we would love to see you.
Register for this FREE event via the link below or by emailing firstname.lastname@example.org
Braxton Group, IIC and PIMFA are committed to helping businesses like yours understand and navigate important cultural issues within the marketplace.
The chart below shows the ranking of all our clients' CX vs. their Net Promoter Score (NPS®). As you can see, the greater level of CX being delivered goes hand in hand with a higher NPS score, proving that continually delivering an outstanding CX drives customer retention and loyalty.
*NPS® is a customer satisfaction benchmark that measures how likely your customers are to recommend your business to a friend and is a typical benchmark that companies measure to evaluate and improve customer loyalty. Learn more here
Net Promoter®, NPS®, and Net Promoter® Score are trademarks of Satmetrix System, Inc., Bain & Company, and Fred Reichheld.
Customer loyalty is driven from a consistently positive experience with a brand. An impressive CX will set you head and shoulders above your competitors and can be a huge point of differentiation. In 2019, we awarded 19 of our clients with an IIC Gold award for their continued dedication to providing an exceptional CX, all of whom excel when it comes to customer loyalty and retention.
*Barnett Waddingham Trustee Services were awarded Gold
We're always on the look out for fresh thinking and new ideas in CX. Here's our hand-picked selection of the best articles we have come across recently.
Revealed: The Two Secrets To Customer Loyalty
When it comes to managing loyalty, there are no secrets. There is no trick to getting there. It’s consistent excellence in your interaction with customers.
Are You Undervaluing Your Customers?
Harvard Business Review
The true purpose of a business, Peter Drucker said, is to create and keep customers. Most managers understand this, but few behave as if they do.
Customer Loyalty And Retention Are In Decline
Two-thirds of consumers surveyed said they are more likely to switch to the competitor that provides the best customer service or experience. Ignoring or not properly investing in your customer service efforts comes at a cost … your business!
What Artificial Intelligence Means for Customer Loyalty Marketing
Data-driven customer marketing (you might know it as loyalty marketing) is designed to change customer behavior in a positive way for both the brand and the customer.
Five key ingredients for a customer centric culture
There are indicators which show that when organizations truly put their customers at the heart of everything they do, the profits will follow.
We're benchmarking customer experience perception. See how you think you're doing versus everybody else. Here's how it works:
1. Follow this link to our CX perception survey. Or scan the QR code with your smartphone.
2. Fill out the short questionnaire (your perception of your organisation).
3. Receive your perception benchmark (based on everyone who has filled out the questionnaire). We will update you as more data becomes available, so you can see how you're doing against an ever-growing data-set.