Why you should spend less on marketing and more on customer supportBack to all Insights
According to the latest ASCI Retail Report, customer satisfaction within the internet retail industry rose 5.1% in 2014 and over 80% of companies have planned to increase their customer experience spending in 2015.
Brands are becoming more aware that prioritizing retention in their marketing plans is not only a way to improve customer satisfaction and increase conversions, but also a powerful tool for increasing customer acquisition volumes.
83% of happy customers are willing to become brand advocates
In fact, satisfied customers are one of the most valuable lead generation tools a business can own. According to a recent survey by Bluenose, a leading provider of customer retention software, around 83% of satisfied customers are willing to become brand advocates and talk favorably about a brand or product they have had a positive experience with. With the cost of acquiring a new customer now around 8 times higher than retaining an existing one, and the added chance of these customers bringing in new ones, it is high time to roll out the red carpet for your online customers and vow never to lose one again!
Make your customers feel like a part of your brand
Start by checking out the tools and resources which can help you keep in touch. Let your customers know that they are valued by your business and use every possible interaction to do so. Never make them stay on hold or wait for an email response when contacting your customer service team. Give them an instant answer on Facebook or Twitter, or install a live chat window on your website to answer their needs in real-time. If you don’t have one already, set one up now.
But perhaps more than anything else, listen to what your customers have to say. Take their feedback and use it to improve their experience with your brand and to show them that you care. Investing just a little time on engaging with your customers can go a long way in improving overall retention rates!
20% of your existing customers will generate 80% of your future profits
Focusing on existing relationships via customer support will pay off. Returning customers purchase more on each order than new visitors and have a higher average spending rate over time. In fact, around 80% of your future profits are likely to come from just 20% of your existing customers.
So make customer service an integral part of your marketing budget. As a general rule, 10 to 15% should be allocated to improving your customers’ support experience. Without a strong and personalized customer support process, your acquisition efforts will have little impact on growing your customer base.
What are your tips for improving customer retention? How much is your business spending on customer support? Please share your own story in the comments below. We’d love to hear from you!