Our previous article focused on generating leads and attracting new customers to your business using CX data. If you have achieved that, congratulations! Your customer base has increased. However, your task doesn’t end there.
Businesses should pay equal attention to retaining their existing customers and improving customer loyalty. Putting things in perspective, statistics show that acquiring a customer is 5x costlier than retaining an existing one. Moreover, the probability of selling something to an existing client is easier than to a potential. So, how can you turn your customers into loyal friends?
The answer, again, is your CX data!
When it comes to loyalty, the typical stage that retail businesses measure to evaluate customer experience is post-purchase that includes delivery and customer support. You can use different metrics like NPS, EVI®, CES, and C-SAT for this purpose and gather prompted feedback. On the other hand, businesses can also gather unprompted feedback by monitoring what customers tell about their products on various channels like social media or review sites.
Aim for Highly Enriched Customer Data
An important aspect to consider when gathering customer feedback to measure loyalty is the enrichment level of data. While lead generation strategies can benefit from all levels of enrichment, customer loyalty-driven strategies are based on highly enriched data.
The reason? The feedback you receive is from people who have already done business with you – meaning purchased your product or service. Therefore, you will have access to at least some of their contact details.
If you are to compel your existing customers to make repetitive purchases, you need to have a good idea about their purchasing behavior and character traits. You have to know their demographics and their preferences. Such information is only possible via highly enriched data.
Actions You Can Take Based on Enrichment
The extent to which you can improve the loyalty of your customers depends on the enrichment level of their data. Details like the customer’s email, phone number, average purchase size, amount of purchases made with your business, number of times they contacted customer support, happiness level in previous stages, etc., can give you more opportunities to convince them. That being said, not every customer data will contain all these details, as some might be now and some old. It is also why it’s important that you maintain an omnichannel presence and gather customer data from multiple sources.
Here are some actions that you can take based on the enrichment level of data.
Customers with a high survey score and high repeat purchase rate provide you with more scope for personalized sales offers. You can view their purchase history, identify the products they frequently purchase and offer discount codes or bundle offers.
In addition, customers who repeatedly purchase from you are also the best advocates of your brand. You can ask for referrals or direct them to the referral site based on the survey score. This way, you improve the engagement of your repeat customers and enhance their CX.
On the other hand, persuading customers with low survey scores yet high average basket size might require a different approach. They can leave your business if you don’t take the right measures to keep them. One of the ways in which you can avoid churn rate, in this case, is by sending attractive offers in the form of discounts or bundled product offers at the correct time, or other similar tactics.
More importantly, you should reach out to them individually if possible and understand the reason behind their dissatisfaction. If it’s something that can be fixed promptly, brands need to take quick action and let customers know their voice was heard!
Want to learn more about it?
Check out this article to learn about how you can automate customer communication based on your CX data.