4 Surprising Statistics About Customer Relationships
Customer relationship management can mean the difference between losing and keeping a customer. Long gone are the days where consumers walked into a few stores in search for what they want. Today, word-of-mouth recommendations are more important than ever and people are searching the Web for desired products and services.
CRM software can help you improve many areas of your business, and it will make all the difference to your overall sales. Here are five statistics about customer relationships and how proper management can help put the numbers on your side.
Bain & Company and the Harvard Business School found that just a 5% increase in customer retention could increase profits by up to 95%. This is just one statistic that demonstrates the importance of customer retention. It's important to cater to repeat customers because on average, they comprise the bulk of sales. They bring in repeat business, and help bring others on board to do the same.
With CRM, you can help retain customers via personalized messaging. Instead of sending mass emails and operating with a one-size-fits all approach, communicate with your customers by showing them you value their business, offering tailored discounts and promotional opportunities, and keeping them up-to-date with any relevant company news.
Slow and steady wins the race with customer retention, so it's important not to expect immediate results from your customers. The same study found that customers who purchased apparel online spent twice as much during months 24-30 of the relationship than their first six months.
Loyalty has a tremendous impact on the bottom line. A TD Bank study found that 77% of consumers prefer brands that demonstrate appreciation. Furthermore, a study from Interactions revealed that 80% of Gen
consumers are willing to sign up for a loyalty program in exchange for various deals and discounts.
Consumers are drawn to rewards, and effective loyalty programs incentivize the customer to continue making purchases. With CRM, you can better manage your loyalty programs. It allows you to collect data and use it to drive additional purchases and shape consumer behavior.
Poor customer service comes with a high price tag. According to NewVoiceMedia, an estimated $41 billion is lost annually in the United States due to bad customer service experiences. A large number of consumers won't bother interacting with a company again if they feel as if their business is unimportant. This goes for any industry, but is especially true for consumers in the technology space.
Furthermore, the smaller the company is, the more the average consumer expects from the customer service. For example, if a customer has a bad experience with a Forever 21 clothing store, they aren't as likely to disappear with their business permanently as they are with a small and/or local retailer.
Fortunately, another business's loss is your gain. When those customers decide to take their business elsewhere, you could be that “elsewhere.” Be prepared to deliver a different kind of experience. There should be multiple customer service channels in place to make it simple for consumers to reach you in their preferred way: email, social media, help center, etc. One of the best ways to demonstrate your customer service principles is by being attentive. There should never be a “no solution” response to an inquiry.
Online Reputationp>< According to Retailing Today, 81% of consumers conduct online research before making big purchases. This means your content needs to be concise, your reviews positive, and your webpages informative. When you have processes in place to improve your customer management, you're in a better position to receive great reviews and to solicit them through marketing efforts.
A solid online reputation also makes it simpler to convince influential bloggers to talk about your brand. In the world of ecommerce, a business's online reputation is just as strong as a word-of-mouth recommendation. When you take the time to nurture your business's online appearance, you end up with a revolving door of positive affirmation.