1.1.1 Measure Consumer Repurchase and Customer Loyalty
Customer Satisfaction is a main indicator if a customer aims to repurchase and customer loyalty. It is the best indicator that shows how likely the customer will repurchase in the future. Asking customers to give a rating of their satisfaction on a scale of 1-10 is a good idea to see if they will become repeat customers or even promoters. Any clients that give you a rating of 7 or more, can be viewed as fulfilled, and you can securely anticipate that they will return and make a repurchase. Clients who give you a rating of 9 or 10 are your potential client advocates who you can use to wind up missionary for your organization. While scores of 6 and beneath are cautioning signs that a client is despondent and at risk of leaving. These clients should be put on a client watch list and followed up so you can decide why their fulfillment is low.
1.1.2 A state of separation
In a competitive marketplace where organizations go after clients; consumer satisfaction and customer loyalty is viewed as a key differentiator. Organizations who prevail in these vicious conditions are the ones that make consumer loyalty a key component of their business procedure.
In most cases a suggestion for one business would influence consumer your feeling. This proposal initially begin, as more than likely it’s on the back of a good customer experience. Companies who offer amazing customer experiences make conditions where fulfillment is high and client advocates are bounty.
This is a case of where consumer loyalty ends up at ground zero. Not exclusively would customer be able to fulfillment enable you to keep a finger on the beat of your current clients, it can likewise go about as a state of separation for new clients.
1.1.3 Reduces client churn
An Accenture worldwide consumer loyalty report (in 2008) found that cost isn’t the primary explanation behind customer churn; it is in reality because of the general low quality of client benefit.
Consumer loyalty is the metric you can use to diminish client beat. By measuring and following consumer loyalty the firm can set up new procedures to expand the general nature of its client benefit. It is recommend to put an emphasis on exceeding customer expectations and surprising customers in every chance. This can be done for six months, then the customer satisfaction can be measured again.
1.1.4 Increases customer lifetime value
Satisfaction plays a significant role in how much revenue a customer generates for the business. Successful firms understand the importance of customer lifetime value. If a company increases its customer lifetime value, then it increases the returns on its marketing dollar.
For example, a company might have a cost per acquisition of $500 dollars and a Customer Lifetime Value of $750. That’s a 50% Return on Investment from the marketing efforts. Now imagine if Customer Lifetime Value was $1,000. That’s a 100% Return on Investment!
Customer Lifetime Value is a recipient of high consumer loyalty and great client maintenance.
1.1.5 Reduces negative word of mouth
McKinsey, is a worldwide management consulting firm that conducts qualitative and quantitative analysis, in order to evaluate management decisions across the public and private sectors. McKinsey found that an unsatisfied customer tells between 9-15 people about their experience. In fact, 13% of unhappy customers tell over 20 people about their experience.
Unhappy customers may not inform the company about their problems but they will tell others. In fact, an unsatisfied customer will tell between 8 and 10 people about their negative experience with a company. This can affect the business and its reputation in industry.
Consumer loyalty is firmly connected to income and repeat purchases. What frequently gets overlooked is the manner by which customer loyalty adversely impacts your business. It’s one thing to lose a client since they were miserable. It’s something else totally to lose 20 clients on account of some terrible informal exchange.
1.1.6 Easier to keep customers than acquire new ones
It costs 6 to 7 times more to get new customers than it does to hold existing ones. Customers cost a lot of money to get. Marketing teams spend thousands of dollars getting the attention of prospects, sustaining them into leads and ending them into sales. Transforming new customers with early on offers and promotions do increase and add to the firm’s cost base. Keeping its current customers satisfied can, therefore, save a lot of time, energy and money.
Working out the lifetime benefit of existing clients can help pinpoint the amount to spend on holding current clients, so any business should concentrate resources and assets on catching new clients and building its client base.
Assigning part of the firms’ marketing budget towards customer retention, can help with increasing customer satisfaction and retaining customers. The firm can follow any of the following customer retention strategies or maintenance procedures:
? Use blogs to educate customers
? Use email to send special promotions
? Use customer satisfaction surveys to listen
Delight customers by offering personalized experiences