In today’s digital age, customers are empowered now more than ever to be vocal about their experiences. Their high expectations force brands to ensure they provide the best customer experience in order to maintain a good reputation which also increases competition across industries. Furthermore, consumers have a multitude of options at hand, which means a negative experience can highly impact a brand’s reputation and drive the customer to a competitor as a result. They don’t have to be loyal to any particular brand (unless it’s by choice) which makes it so important for companies to ensure they provide the best experience they can to gain loyalty.
Happy Customers Increase Revenue
It’s evident that a satisfied customer is more likely to spend more than an unsatisfied customer. According to the Harvard Business Review, customers who had satisfactory experiences were 140% more likely to spend than those who had a poor past experience. Ultimately, positive customer experiences drive sales. In the figure below, the results from a consumer analysis report shows how much more likely a customer is willing to spend if they have had a positive experience with a brand. Focusing on customer satisfaction is considered a non-quantitative ROI in marketing—and this graph clearly depicts why.
Customers are Brand Ambassadors
Social media is accessible to everyone, which means reviews can travel quickly. Creating a great customer experience goes beyond the transaction as a satisfied customer can increase business and also contribute to virality. At the same token, it can also affect the business negatively as reports or posts of negative interaction can spread like a wildfire. It’s best to maintain a positive reputation for your brand rather than having to rebuild it.
Creates Brand Loyalty
Providing excellent service consistently helps increase the likelihood of customer loyalty. For example, American Express card members pride themselves on their “member since” date as it proves that they have had a long-standing relationship with the company. At the same time, American Express may use this as a tactic to reinforce a positive customer experience and sustain customer loyalty.
One of the key benefits of providing a unique and excellent customer experience is that it can reduce expenses. Being proactive in servicing your customer, making sure things get done properly, helps avoid having to pay for costly mistakes. It’s best to think ahead by doing it right the first time rather than working twice as hard to resolve customer issues or dissatisfaction.
All in all, when brands put their customer first, they reap the benefits every time as customers are willing to put their money where they feel most appreciated and satisfied. We often think of numbers when it comes to ROI, but customer satisfaction provides a return on investment that is invaluable. It is imperative that brands keep customers at the top of mind at all times.