On the path to becoming a loyal customer, people go through the customer life cycle. Consistently satisfied customers reach the retention phase. Retaining customers saves money. It can cost five times more to attract a new customer than to retain an existing one.
Research from shows that increasing customer retention rates by just 5% increases profit by 25% to 95%. For small businesses, this increase can mean the difference between survival and prosperity.
Some happy customers even reach the final stage – loyalty . These advocates are genuinely enthusiastic about your brand. They write great reviews online , recommend your business to others, and shop with you again. Both retention and loyalty generate profit, providing a great incentive to keep customers satisfied
Customer satisfaction maximizes customer lifetime value
Customer lifetime value is the amount of money you can expect to earn from a customer over the course of your relationship.
Factors for calculating customer lifetime value include average order value, average purchase frequency, and average customer lifetime. It’s only new database natural that satisfied customers will spend more money, buy more often and stay with you longer. Therefore, prioritizing customer satisfaction maximizes the lifetime of your customers.
For small businesses, the lifetime value of each customer is even more important. Remember to use your advantage to build deeper relationships. Understand your customers’ goals and step up your efforts to achieve them. Customers who feel valued provide increased value to your business in return.
Customer satisfaction differentiates your business.
With increased competition in almost every industry, business differentiation is of great importance. Customer experience, service and relationships are key brand differentiators and as we said are small business advantage . When people like you and have consistently positive experiences with you, your business stands out from the crowd.
Quality and price are more or less the same everywhere, customer satisfaction makes the difference . Research shows that people will ASB Directory spend more money for a better experience. Two-thirds of consumers say they will pay more for a company that provides excellent customer service.
Also according to surveys, 60% decide not to complete a purchase due to poor customer service. The importance of customer service and satisfaction is undeniable. If you want people to choose you (and choose you again), consistently deliver a great, customer-centric experience.
