Customer service, sales and marketing are typically houses divided in many large organizations. But what happens when they all come together to focus on the customer experience? Business magic: increased customer retention, increased sales and an increased confidence in your brand and its messaging.
After all, increased sales don’t just come from new customers; increased sales also stem from an increase in customer satisfaction. Consider these statistics:
- Customer retention programs can increase overall company sales by as much as 50%.
- Repeat customers spend 33% more than new customers.
- Referrals among repeat customers are 107% greater than non-customers.
- It costs six times more to sell something to a prospect than to sell that same thing to a customer.
- Customers who use social media will tell an average of 42 other people about good customer service experiences.
The effects of negative customer experiences on sales are just as impressive:
- 49% of consumers have not completed an intended purchase due to a poor customer experience.
- It is estimated that U.S. enterprises lose $83 billion each year due to defections and abandoned purchases as a direct result of a poor customer experience.
- Customers who use social media will tell an average of 53 people about a bad customer service experience.
- One of the most common reasons customers stop doing business with a company is because they only hear from the business when money or sales is directly involved.
Even though the above statistics show the close relationship between customer service and sales, research shows that the average business’s marketing department currently spends approximately 80% of its budgets focusing on acquiring new customers rather than customer care and retention.
Keeping customers happy, not to mention selling additional products or services to them, is difficult to do with just a 20% investment. Consider one of the key statements that has propelled both sales and word-of-mouth marketing efforts for Zappos: Customer service is not department, it is the responsibility of the entire company.
Take small steps to bring together customer service, sales, marketing (and all departments) with a targeted focus on the customer experience and you’re sure to notice a positive effect on the bottom line.
Five Current Customer Care Tips:
- Offer personal and exceptional customer experiences at every business touchpoint.
- Conduct customer satisfaction surveys at least annually and take action on select feedback.
- Treat customers as you would friends. Communicate and interact on a frequent basis, not just when sales or customer service issues are involved.
- Include customer appreciation in your marketing promotions and brand messaging.
- Offer small but meaningful acknowledgements of appreciation for customer loyalty and referrals.
The tips above may seem like no-brainers, but in the hectic processes of day-to-day business, it’s easy to miss the mark on the little things that can have big results.
More Customer Care Content You May Be Interested In:
- The 6 Worst (and Best!) Phrases in Customer Service
- We Could Be Customer Service Heroes
- Six Simple Tips for Collecting Customer Feedback
- FREE White Paper: Treat Your Agents Well: Service Thrives on Engaged Employees