When a customer purchases a product or a service, they continuously seek the sellers complete and undivided attention. In other words, customers require the seller’s attention not only before but also after the purchase transaction is conducted. This is because in this digital era, the world is filled with anonymous retailers, because of which consumers feel a sense of belonging and loyalty when they purchase from a retailer with whom they already have a long and established relationship. Therefore, retailers must constantly upgrade customer service to improve customer satisfaction and customer retention rates. In addition, customer service assists in providing optimal before sales and after-sales services to strengthen brand loyalty and brand advocacy.
According to market research, a 5 percent increase in loyalty will improve the company’s profits by at least 25 percent. As a result, the generated profits enable businesses to improve their operational efficiency and boost the firm’s growth and survival. Customer satisfaction is not gained by successfully achieving a sales target or by increasing store traffic through seasonal discounts, but it is attained by maintaining communication with the customers and maintaining a positive and long-time relationship with them.
Retailers can maintain optimal communication through various online platforms such as messengers, Chat boxes, newsletters, and other mobile applications. As a result, the online platforms made it simpler to inform customers about the current market trends and store locations. Moreover, they also raise awareness about new schemes and other information that the organization wants to convey to its customers. The technological advancements have improved the response time of the firm to deal with any complaints, demands or customer preferences.
The technological developments have made it easier to analyze the competitive environment and apply the required customer relationship management techniques to retain their customers and prevent them from switching brands. According to a recent market study, more than 30 percent of customers refrain from brand switching provided that the retailers fulfill their demands and swiftly answer to their queries, regardless of the price or the competitors in the market.
Social media has made it possible for businesses to connect with their customers outside the geographical parameters. Forty percent of the customers like to stay connected to their preferred brand through at least one social media channel.
Customer Satisfaction and CRM Strategies
Customer satisfaction also helps businesses in turning current customers into brand advocates as well as attract potential customers. Therefore, it helps in gaining new customers and supporting the organization to grow in a highly dynamic and competitive environment.
One common way to measure customer satisfaction on offered products and services is through surveys. Surveys assist retailers in attaining valuable insights which they can later incorporate to rectify errors in the firm’s performance successfully. Other methods for companies to gain knowledge includes focus groups and exit interviews. In addition, these evaluate the difference between the customer’s expectations and what the firms provide in contrast to it.
Online Forums and Loyalty Programs
There are also other online forums where customers can type in ratings, comments as well as reviews. According to market research, 84 percent of customers believe that these forums are a significant influence on their purchase decisions. Therefore, it is crucial for companies to keep constant track of such sites and rectify any issues in the organizational performance accordingly.
Businesses can also issue loyalty programs to attract more customer retention. According to a recent market study, 71 percent of members state that membership to loyalty programs assists in maintaining a long-term relationship with companies. Moreover, at least 3/4th of these members are more likely to recommend the brand to their friends and relatives.
Written By: Ameet Gwalani
Chief Business Enabler