It has long been recognised that it is much harder to acquire a new customer than to sell to an existing one. Depending on the research you subscribe to, somewhere between two and five times more financial resource is required to attract a new customer. Without doubt, any business will want to acquire new customers, but is it possible that we are getting to be just a little complacent when it comes to keeping our customers loyal?
The Key Drivers of Customer Loyalty
Just like anything else in life, the attributes that change customer loyalty are subject to change over time and will no doubt be different between industries. But as a general rule, customers will tend to keep coming back if you are providing them with value. Value could be determined by price, quality or trust. More recently, convenience seems to play a much larger role in the value chain.
Why is Convenience so Valuable to the Customer
In the context of customer service, convenience can be defined as an experience that minimises the effort required of the customer. According to an article published in the Economist, the perception of value of our spare time has risen to astronomical levels. In a nutshell, time is money and if you want to excel in customer service delivery then you had better make it highly responsive and easily accessible for them to use, otherwise it becomes expensive.
The Generational Effect
The average well-educated Gen-Y and Millennial amongst your customer base will not just have a high value placed on their time, but also a very high expectation of convenience. They spend much of their day interacting with online sites and mobile apps that’s business is to simplify many aspects of their life. Uber, AirBnB and eBay are all examples of very successful online services that spend millions of dollars each year on striving for the best possible customer experience. Why? Because they understand what will keep their customers sticking to their platform.
A Happy Customer is a Repeat Customer
So to put it simply, spending your financial resources on lead-generating activity may well bring customers knocking on your door. But if you don’t make it easy for them to buy, and convenient for them to return and buy more, they will be happy to move on to your competitors who may provide a more accessible way to buy.. Respect the value placed on customer convenience and your customer will love you and reward you for it.
Visit www.riyo.io to learn how our BDP (book-dispatch-pay) platform can help your business step into the future of customer convenience, the way your customers want it.