Long-term benefits of customer satisfaction
Customer satisfaction is a big part of ensuring your business is successful but many often overlook this aspect. Instead, companies start focusing on acquiring new customers and not enough on customer service and retention. Unfortunately, this is damaging to sustainable company success and ends up making it difficult for brands to find loyal customers.
With increased competition, you must work harder to keep customers satisfied and coming back for more. There are several benefits of keeping your current customers happy and can have a positive impact on your business.
Cost-effective in the long run
Existing customers purchase 67% more than new customers.
It is 5-10 times more expensive to find a new customer.
Seeing these statistics, it is very clear that companies must make customer retention and satisfaction their top priority. But, research shows that 80% of companies only spend 30% of their yearly budget on customer retention programs. Ensuring your present customers are happy can be more cost-effective in the long run as opposed to running after new leads that may or may not convert. Companies that keep customer retention as a key priority are sure to come out on top.
Loyalty towards your brand
Once a customer is satisfied with your products and services, they are more likely to stick to your brand rather than go hunting for a new one. Research has already established that customers are more likely to choose better customer service over a lower price point, with eight out of ten customers agreeing with this. Satisfied customers not just help create a recurring revenue stream, but also develop loyalty towards your brand. Customer satisfaction should be a top priority for businesses as. better customer experience is what creates brand loyalty.
Word-of-mouth recommendations and advertising
People recommend brands only when they are satisfied with the products and services they get. In fact, a report by Accenture says that 55% of consumers show their loyalty towards brands by recommending them to others. As we all know, customer recommendations are extremely important for businesses to find convertible leads who are already interested. Research has also shown that 83% of customers trust recommendations from known people over any other kind of marketing. In this age of social media, satisfied customers share reviews and recommendations online, offering one of the best types of marketing you can get – free advertising!
Ensuring your customers are satisfied has become an important factor for companies today. Look for new strategies and retention plans as a way to keep present customers engaged and reap the many benefits of effective customer service. Driving increased satisfaction will also allow you to differentiate your business from others and maintain a constant stream of customers who are loyal to your brand.
Luckily, business owners now have the advantage of technology available at their fingertips. Maintain loyal relationships and ensure your customers are happy by using CRM technology to measure customer satisfaction.
Reach out to FIVE CRM to know more about how we can help you retain more customers.