Companies continue to dump truckloads of dollars into marketing efforts to try and attract more and more customers. On the surface, the goal appears to be worthwhile. Every company wants to increase revenue and boost the bottom line. But, tactically, this approach may not deliver the most bang for the buck.
Companies can achieve a higher rate of return by focusing on customer relationship building to keep good customers than by trying to lure new ones. A recently released report from Adobe estimates that for each 1% of shoppers who return for a subsequent visit, overall revenue will increase by approximately 10%. So, if retailers invested in keeping an additional 10% of their existing customers happy enough to keep buying, they would double their revenue. Adobe also notes that for online retailers, 8% of their existing customers make up 41% of revenue.
The bottom line is that now is the time for companies to destroy the myth that advertising delivers a higher ROI than the joint efforts of customer service and CRM – and wrap their arms firmly around customer relationship building.
Improving customer experience starts with knowing the customer. In order to have a meaningful relationship with anyone, no matter whether it’s in business or in life, each party needs to have an understanding of who the other is as an individual. This applies to customers. Today, the rapid growth of customer interaction data and advanced analytics has converged to make personalized marketing a reality. To deliver on a personalized experience, businesses must truly understand the customer and discover his or her unique set of likes, dislikes, and preferences.
Businesses must also have complete visibility into every process, platform, and customer touchpoint, so the customer’s intent, likes, and preferences are visible to all stakeholders throughout the customer’s entire journey. By making customers’ journeys completely transparent to all company divisions, a business can empower associates by letting them harness the information about customers when it matters most – at the moment of engagement.
In a world where effective customer service can deliver both customer satisfaction and profits, the imbalance of where marketing dollars are spent needs to tilt back towards customer experience to maximize return. Creating lasting valuable customer relationships is the foundation for sustainable loyalty. A customer-centric CRM platform can help. To see how CRM can help facilitate creating stronger relationships with your customers, and improve ROI please download our whitepaper 4 Keys to Driving Revenue through Customer Experience today.