You might have developed some great products or services to address a need for a specific market, but that does not automatically mean your business will be a success. Your customers will have a significant impact on how well your product or service sells. They care about what they’re buying, how and where they buy it, and what happens after they make the purchase.
The growing power of the consumer means that companies must invest more resources in building and maintaining customer relationships. According to a recent customer expectations report, 79% of consumers care more about personalized service than personalized marketing, and 84% will go out of their way to spend more money with great experiences. As a result, companies must create better and more consistent customer experiences during every interaction with consumers.
To meet the demands for greater customer experiences, companies must focus on managing their customer relationships. Strong customer relations are essential for building customer loyalty and retaining current customers. This means understanding what is required to ensure top-quality customer relationships and create great experiences with your customers.
Improving customer relations means your company will have higher customer retention rates. Customers are more likely to stop purchasing a company’s products or services if they have an unsatisfactory customer experience. Customers will overlook a company’s mistakes when it puts in the effort to create a satisfying customer relations experience. Being transparent in your attempt to make things right will help with reducing churn. According to one study, increasing customer retention rates by 5% can increase a company’s profits by 25%, so there is a financial incentive to build a positive customer relationship.
Maintaining a good relationship with customers over time makes it more difficult for competitors to capture your customers’ attention. Repeat customers are more likely to make purchases than leads that have not been converted, which makes customer loyalty that much more valuable. Positive customer relations can increase customer loyalty as it gives customers an intangible incentive to make future purchases. According to Esteban Kolsky, CEO of thinkJar Research, 55% of consumers will pay more for a guaranteed good experience. This means that customer loyalty can generate consistent revenue over the life of the customer relationship.
Most dissatisfied customers will not complain about a poor customer relations experience; they simply won’t return to make another purchase. As a result, it’s difficult to tell when customers are not happy with your business. Investing in customer relations can help to prevent these types of customers from unexpectedly ending their relationship. Creating open channels of communication that invite customer feedback can help with identifying customers’ problems, which will enable your company to solve those issues and build customers’ trust over time. Creating better customer experiences can also influence their purchasing decisions more than advertising and marketing.
Key takeaway: Good customer relations boost customer retention, customer loyalty, and customer satisfaction.