Studies across a number of industries have revealed that losing customers can have a considerable financial impact: the cost of winning back a customer after his defection can be from 50 to 100 times the cost of retaining that customer and, at the same time, the cost of keeping an existing customer is around 10% of the cost of acquiring a new one.
In an increasingly digital world, new forms of targeted online ad delivery have emerged, and for those businesses that want to succeed, there are mainly two steps to obtain success. First, they should try to dominate new digital innovation to create personalized experiences for each customer. Second – and most decisive – they should ensure that these innovations are delivered reliably.
Although customers, today, constantly interact with brands to make their purchasing decisions, completely different parts of an organization manage most such contacts. Digital channels can unify that experience and prevent the leakage of opportunity.
So, how can companies achieve these goals?
- By choosing technologies and adopting processes that simplify the creation of exceptional customer relationships. For example, an important role is played by the contact center for customer service: improvements in first contact resolution alone can improve customer retention by as much as 15-30%. Moreover, successful recovery efforts significantly increase post-service satisfaction levels. Acting deliberately to reduce the work that customers must do to get their problems solved will help to build loyalty, reduce customer service costs and decrease customer churn.
- By investing in a delivering service that exceeds customers’ expectations. Through high-touch, high quality interactions, they can differentiate themselves from competitors. For example, companies should empower the front line to deliver a low-effort experience and not try to solve only the customer’s primary issue, but also to anticipate and head off the “next one”. This would have a positive impact to the brand, in addition to create more satisfied – and loyal – customers.
- By rewarding not “only” transactions: most of the loyalty programs provide that to each transaction correspond points (the more you spend, the more points you receive) and there are very few companies that provide rewards (points, miles, etc.) based on a real involvement of the customer in some kind of activities – the so-called “engagement”.
- By coordinating content across the entire consumer experience: it’s not easy but, when done right, it can help to increase the online revenue.
- By ensuring that marketing investments are proportional to the influence they may have on the customer’s purchasing decision
- By making the right investments: traditional marketers spend about 60% of their budgets on “working media” (or paid placement) and about 20% on creating content. Digital channels, with their social nature, reverse these economics because they focus on a smaller group of engaged people who can share positive impressions or information with a bigger public. Moreover, companies should make smart investments in data tools, to identify and reach relevant consumers. Studies have revealed that by making the right investments, companies can spend significantly less on marketing as a percentage of sales, with little to no deterioration in performance.
Conclusion
It seems that the real “winners” are those who are able to capitalize on the enhanced expectations of customers by properly integrating innovation to deliver a personalized customer experience. If it is truth that digital innovation can win customers, it is even more true that consistent delivery will capture their loyalty.
Interested on digital marketing? Contact us at Innofis to study your case and see the best way to benefit from it.
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