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How do you provide your clients with high-quality service or product and display the value at the same time? And why does value matter so much to businesses?
The ability to understand customer value helps businesses to increase their profits.
It begins and ends with customer experience. If your business strives to encourage brand advocacy, a positive customer experience is a must. According to HubSpot Customer Acquisition Study, around 80% of customers rely on the information provided by their family members or friends over the advice received from a brand. It means only one thing — a satisfied customer is a loyal customer.
And loyalty has everything to do with customer value, which is worth obsessing over if you want to grow your business. So, let’s take a look at the basics of displaying value to customers.
Understanding Customer Value
It takes two mandatory procedures for any business. Understanding how your customers feel about your offerings might seem like the fundamental challenge. And yet, you also need to manage the perception of your company.
But where do you start?
More than 50% of customers lose trust in brands they often interact with and buy from, so it is reasonable to start with the product description. It tends to be one of the first customer touchpoints, and therefore, can lead to either purchase (or any other specified action) or total abandonment.
That is why every brand should accurately describe a product to a new customer. And while the returning customers might not spend as much time reviewing the description, it is still worth the effort.
That is how you can make a description appealing:
- Keep it short and informative
- Make sure to include the main benefits
- Mention every peculiar detail about the product or service that can affect customer experience
If the product matches the customer’s expectations you can reduce the chance for any sense of buyer’s remorse. It is a post-purchase regret that might take place if the price is not outbalanced by the product benefits.
And while customer experience is not limited to the buying process, the latter can significantly impact the overall customer value.
It is no secret that an outstanding experience makes customers come back. That is why customer value is often viewed as the comprehensive picture of a company’s retention rate.
Why Focus on Customer Retention?
Failure to bring or win back your core customers will eventually cost you your business.
If you want your company to succeed in the long run, you need to direct a great deal of attention and marketing efforts at customer retention.
It might seem like the customer pool is ever-increasing, and you can always count on the new ones coming your way. Unfortunately, that is only true about the acquisition costs. Focusing on attracting new customers means that the customer LTV is low, not to mention the loyalty level.
Before starting to work on the actionable retention plan, you need to evaluate the current retention rate via these key indicators:
- Repeat customer rate.
- Frequency of purchases.
- The average value of orders.
Once you have all the essential information on your current retention, consider including the following suggestions in your plan:
- Follow the fundamental customer retention tips.
- Treat your clients respectfully and connect with them on a personal level.
- Demonstrate your appreciation through small gifts, discounts, and social media posts.
- Use call recording services to record communications. It can help you track all the incoming calls and inquiries, analyze the gained data, and improve your performance.
- Be proactive and ask for feedback systematically. This way, you can demonstrate to your customers that you take their opinions, likes, and dislikes seriously.
How to Improve Customer Value
The first thing you need to acknowledge is that your client base is your greatest asset.
That is why every successful business works hard on improving customer satisfaction and enhancing customer value.
The following tips can help your support and customer success teams to generate more value and loyalty.
#1. Carefully assess customer experience
The best place to start is by assessing the positive and negative experiences. At this point, you need to understand why your customers are happy or unhappy with the service or a product.
Creating a customer journey map can help you visualize all the touchpoints and pinpoint the problematic ones.
#2. Remember that engagement matters
The bonds and connections you build with your customer base is the driving force of your business. And customer experience is the basis for creating these connections.
That is why businesses cannot afford to ignore customer loyalty or engagement. The right approach to customer engagement can make a noticeable difference for any brand by adding value to it.
#3. Collect valuable data
It is no secret that effective changes are impossible without access to granular data and analytics.
In this case, gaining access to both numeric data and qualitative details can work wonders.
#4. Make sure that loyal customers receive value
Today, the distinction between the brand name, its services, and loyalty program is often blurred. That is why all the marketing efforts should be in sync.
Poor customer experience can turn even the most loyal customer or a brand ambassador into a deserter. Creating a loyalty program and offering extra benefits through it can considerably increase the value for all types of customers.
#5. Use customer segmentation
Customer value may differ from segment to segment. That is why it is crucial to identify the needs and purchasing behavior of every group.
This way, you can accurately assess customer satisfaction and value.