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Modern-day businesses are leaving no stone unturned to overcome the digital transformation challenges – thinking that it\u2019s the only necessity for plausible results.\u00a0<\/span><\/p>\n If you think the same, then you must reconsider your approach.<\/p>\n The terms \u201cCustomer Retention\u201d and \u201cCustomer Churn\u201d should be on the exact same page. A general overview of <\/span>customer retention statistics<\/span> and churn rate will help you gain a deeper insight into what\u2019s happening in your business operations.\u00a0<\/span><\/p>\n Also, a great understanding of how customer retention fits into the bigger picture will help you with determining the benchmark for your customer experience.<\/p>\n For instance, the businesses not responding according to the customer needs fail miserably and the reports suggest that around $1.6 trillion is lost each year due to poor customer service.<\/p>\n On the contrary, the ones actively adopting a <\/span>customer-centric culture<\/span><\/a> stay longer in the game and are approximately 60% more profitable than their counterparts.<\/span><\/p>\n But the irony is;<\/b> you don\u2019t have many chances to get it right, as 32% of your customers could stop doing business with you just after one bad experience.<\/span><\/p>\n Now, this leads to the question as to how existing customers could be effectively retained?<\/p>\n However, before diving into \u2018how\u2019, let\u2019s first analyze the \u2018why\u2019 aspects.<\/b><\/p>\n Companies find it difficult to be in tune with their customers, especially the ones following traditional operational methods – resulting in a decimated customer base and lower revenues generation.<\/span><\/p>\n 1. On average, all industries fell short of customer expectations by 38% and 96% of customers are willing to leave for bad customer service. (<\/span>Hyken<\/span><\/a>)<\/span><\/p>\n Every customer wishes to feel special. Once they feel that they don\u2019t matter to a company or their problems are not taken seriously, they will leave.<\/span><\/p>\n 2.\u00a0Only 22% of global customers acknowledge that the companies which they do business with offer personalized experiences, based on a deep understanding of their needs, preferences, and past interactions.. (<\/span>Accenture<\/span><\/a>)<\/span><\/p>\n A simple \u201cHey Jack, how are you today?\u201d goes a long way in making a good impression on your customer as opposed to saying \u201cWelcome customer, how may I help you?\u201d<\/span><\/p>\n Give a personal touch to the customer conversations and leave an impression that makes them feel at home.<\/p>\n 3.\u00a080% of respondents said they\u2019d ceased their business with a company because of a poor customer experience. (<\/span>Hubspot Survey<\/span><\/a>)<\/span><\/p>\n 4. 67% of consumers mentioned bad experiences as a reason for churn. (<\/span>Kolsky<\/span><\/a>)<\/span><\/p>\n 5. Poor return experiences could cost you 84% of customers. (<\/span>Klarna<\/span><\/a>)<\/span><\/p>\n 6. 47% of customers agree that they\u2019ll abandon a brand if it doesn\u2019t don\u2019t offer exceptional customer service. (<\/span>Microsoft<\/span><\/a>)<\/span><\/p>\n 7. 30% of consumers will not give brands more than one chance after a negative customer service experience. (Hiver<\/a>)<\/span><\/p>\n The above-listed stats are quite frightening… aren\u2019t they?<\/span><\/p>\n Now you may be thinking, what could you do to retain your customers?<\/p>\n Well, investing in customer service goes a long way in bringing in new customers and ensuring your current customers come back.<\/p>\n Now, it\u2019s crucial than ever for you to shift from a company-centric approach to a customer-centric approach.<\/p>\n As <\/span>64%<\/span><\/a> of companies with a customer-focused CEO believe they are more profitable than their competitors.<\/span><\/p>\n It\u2019s simple. If your business isn\u2019t customer-centric, customers will leave your brand. Hence you should strive to keep customers on top priority in order to deliver delightful customer service and turn them into your loyal customers.<\/span><\/p>\n Customer Loyalty is nothing but a customer\u2019s willingness to associate with or frequently buy from the same brand.\u00a0<\/span><\/p>\n There are numerous factors that raise loyalty, for example, an enticing <\/span>Customer Loyalty Program<\/span><\/a>. However, in general, loyal customers will ally previous experiences to increase their likelihood of repeat purchases.<\/span><\/p>\n 8.\u00a0US retail CX trend report suggests that nearly 77% of consumers have been loyal to specific brands for 10 or more years. (<\/span>InMoment<\/span><\/a>)<\/span><\/p>\n 9. 27% of Americans cited \u201clack of effectiveness\u201d and 12% cited \u201clack of speed\u201d in customer service as the reason that they aren\u2019t loyal to a specific brand. (<\/span>Statistica<\/span><\/a>)<\/span><\/p>\n 10. 50% of customers agreed that they\u2019ve left their loyal brand and opted for a competitor because the brand fails to meet their needs. (<\/span>InMoment<\/span><\/a>)<\/span><\/p>\n 11. Brands reported a 306% higher lifetime value of customers who felt they had an emotional connection with the company. (<\/span>Motista<\/span>)<\/span><\/p>\n 12. 37% of customers agreed that they will pay a fee for a more advanced tier of loyalty program memberships. (<\/span>Bond<\/span><\/a>)<\/span><\/p>\n 13. 62% of shoppers say they won\u2019t buy from a retailer that doesn\u2019t offer free returns. (<\/span>Klarna<\/span><\/a>)<\/span><\/p>\n \u00a014.\u00a0<\/span>86% of loyal customers will recommend a brand to friends and family. (<\/span>KPMG<\/span>)<\/span><\/p>\n 15. 66% of loyal customers prefer writing a positive online review after a good experience. (<\/span>KPMG<\/span>)<\/span><\/p>\n 16.\u00a0 50% of consumers reported that they intend to buy more products from their loyal brands. (<\/span>InMoment<\/span><\/a>)<\/span><\/p>\n 17.\u00a0 37% of consumers consider 5 or more purchases for being loyal to a brand. (<\/span>Yotpo<\/span><\/a>)<\/span><\/p>\n 18. 57% of consumers tend to spend more on their loyal brands. (<\/span>Accenture<\/span><\/a>)<\/span><\/p>\n 19. 46% of loyal customers will remain loyal even after a bad experience. (<\/span>KPMG<\/span>)<\/span><\/p>\n 20.\u00a0 65.2% of customers feel that simply being treated as a valued customer denotes exceptional customer service and the reason to stick to the brand. (<\/span>Hyken<\/span><\/a>)<\/span><\/p>\n 21. The brands that can develop high emotional engagements and meet customer expectations are 6x more likely to create loyal customers. And those loyal customers are 6x more likely to stick with their favorite brands through difficult times. (<\/span>Brand Keys<\/span><\/a>)<\/span><\/p>\n 22.\u00a0 93% of customers are more likely to be loyal customers for the brands having excellent customer service. (<\/span>Hubspot<\/span><\/a>)<\/span><\/p>\n 23. 71% of Members saying that Loyalty Programs are a meaningful part of their Brand relationships (<\/span>The Loyalty Report<\/span><\/a>)<\/span><\/p>\n 24.\u00a0 55.3% of consumers are loyal to a brand because they love the product. (<\/span>Yotpo<\/span><\/a>)<\/span><\/p>\n 25 62% of the customers are likely to stay loyal when a brand builds trust. (<\/span>Edelman<\/span><\/a>)<\/span><\/p>\n 26. A quality loyalty program can make 70% of customers recommend a brand to their friends or family. (<\/span>Brand Loyalty<\/span><\/a>)<\/span><\/p>\n 27. Customer service is the chief driving factor for brand loyalty to 96% of the customers. (<\/span>Microsoft<\/span><\/a>)<\/span><\/p>\n 28. Customer experience is a key factor in driving customer loyalty and retention for 89% of the companies. (<\/span>Invesp<\/span><\/a>)<\/span><\/p>\n It’s clear that the chief aspects of <\/span>building brand loyalty<\/span><\/a> are product consistency, product quality, customer service, and pricing. These aspects encourage customers to either make a purchase or keep looking for alternatives. So research your competitors and always stay a step ahead to elevate the average customer retention rate and an extensive loyal customer base.<\/span><\/p>\n Customer service plays an indispensable role when it comes to retaining customers.<\/span><\/p>\n Customers these days are smarter than ever and they know what good customer service is.<\/p>\n You may wonder, how?<\/p>\n The renowned companies that are known as the <\/span>\u2018customer service rockstars\u2019<\/span><\/i> including Amazon and Apple have taught their customers by delivering promised services.<\/span><\/p>\n Hence, it\u2019s crucial not to give customers a reason to switch.<\/p>\n This is what they expect.<\/b><\/p>\n Therefore, you must analyze:<\/span><\/p>\n – Does your customer support possess the skills to solve the customer\u2019s problems in the very first contact?<\/p>\n – How often do customers need to contact you to get their problems solved?<\/p>\n – Do you empower your customers to help themselves?<\/p>\n Another <\/span>2020 ACA Survey<\/span><\/a>, yielded interesting results; when asked by over 1000 customers if they are willing to pay more in lieu of a convenient experience.<\/span><\/p>\n Almost 70% responded that they would pay more for convenience in general and when the \u2018delivery\u2019 is specifically mentioned, that number shot up to over 90%.<\/p>\n Interestingly, when asked those same consumers, just 62% agreed to pay more for enhanced customer service.<\/p>\n This report clarifies that, to a greater extent, <\/span>convenience beats customer service.\u00a0\u00a0<\/b><\/p>\n Hence, consider the power of a good customer service experience, which is also convenient. This could be just the right combination that will set you apart from your competitors.<\/p>\n 29. 77% of customers stated that they have kept strong relationships with specific brands for over 10 years.\u00a0 (<\/span>InMoment<\/span><\/a>)<\/span><\/p>\n 30. 60% of customers agree that they purchase more frequently from their preferred brands. (<\/span>InMoment<\/span><\/a>)<\/span><\/p>\n If loyal customers are the most profitable customers and referred customers yield the best marketing returns, then lost customers surely possess more value than cold prospects.<\/span><\/p>\n Hence, analyze why those customers have left and take that extra step to win their loyalty for a lifetime.<\/p>\n 31. 67% of consumers stated good customer experience as the top reason for coming back to business. (<\/span>ICSC<\/span><\/a>)<\/span><\/p>\n 32. 1 in 3 customers agreed that they will pay more if they receive a higher level of customer service. (<\/span>Genesys<\/span><\/a>)<\/span><\/p>\n 33. Customers are ready to pay a premium price of up to 13% for luxurious services if they receive a great customer experience. (<\/span>PWC<\/span><\/a>)<\/span><\/p>\n 34. A more personalized experience has impelled 49% of buyers to make impulse purchases. (<\/span>Intrado<\/span><\/a>)<\/span><\/p>\n 35. 61% of customers can engage back with a brand if they receive surprise gifts, offers, or discounts. (<\/span>Merkle<\/span><\/a>)<\/span><\/p>\n 36. Customers are more likely to spend 17% more for a good experience. (<\/span>Hubspot<\/span><\/a><\/span>Why Do Customers Leave?<\/strong><\/span><\/h2>\n
<\/span>Why is Customer Loyalty crucial? (Customer Loyalty Statistics)<\/strong><\/span><\/h2>\n
<\/span>How to Retain Customers (Statistics)<\/strong><\/span><\/h2>\n
Read More – How to increase Customer Retention<\/a><\/b><\/div>\n<\/span>What brings Customers back?<\/strong><\/span><\/h2>\n