‘Customer loyalty’ is one of the most sought after trait almost all contact center managers desperately want to have after they acquire customers. But what makes it such a desirable improvement parameter also makes it a tough nut to crack.
Customer loyalty is an age-old problem, right from the inception of companies and brands. If you have problems in gaining customers who stay loyal, you know for sure it’s time to revamp the existing customer service strategies. Customer loyalty can only be earned not given, and is a dream for many organizations. Another key factor which is responsible for fueling customer loyalty is how intelligently a company can monetize or capture customer emotions.
The beauty of an emotional touch
We are all social beings – the need for the others to understand and aid us emotionally is instinctual when it comes to our natural functioning. Emotions and sentiments play a very critical role when it comes to deciding the face of a business and whether the customer wants to continue to do business with your brand. And this continuity comes with customer loyalty. Even if you goof up, your customers are ready to give you a second or a third chance, instead of just walking out with their business needs.
Customer loyalty for brand advocacy
Customer loyalty is considered the lifeline for any business, yet businesses often focus the spotlight on sales. They choose to run after acquiring customers rather than retaining the existing ones. However, it has been proved that it costs 5 times more to acquire a new customer than to retain an old one. Loyal customers will surely spread a good word about the brand and thereby provide a great boost to the revenues.
Side tip- If you let the statistics speak then in a survey it has been found out that up to 15% of a business’s most loyal customer’s account for 55%-70% of the company’s total sale.
What role do emotions play when it comes to understanding customer loyalty?
A brand’s customer experience strengthens the loyalty of its customers. And their emotions give you an inside look or a window to peep into their heads and understand how they are actually feeling.
If a customer is being valued, pampered, appreciated and given utmost importance, it drives customer loyalty.
The best example that can be given for this can be for hotel industry. Most of the customers after and during their stay in a hotel can instantly feel if the services have been up to the mark or not. If they check out feeling valued and pampered, your chances of mouth publicity increases multifold times. Also, the next time he is in town for business or leisure, they come back to you for business. This is the power of customer loyalty.
Now, let’s reverse the scenario-
If a customer feels annoyed, disappointed and frustrated, it weakens loyalty.
This is the most common emotional response your customer showcase after being in queue for quite some time. They are agitated and don’t sound so pleased with your customer services strategy. Now, in this case if you manage to calm them down and put in some extra efforts, your chances of retaining customers goes up by 5%. And as I said before, it is 5 times more expensive to get a new customer on-board then to retain an existing one.
Besides this, your customer services team or contact center reps can practice certain skill sets to keep your customers happy and reduce the churn rate. After all it is your happy customers who make for happier business outputs.