Making customers feel delighted, appreciated, confident, and respected drives loyalty. On average across the industries, if you make customers feel appreciated, for example, we see that 80% of them will advocate for the brand, 70% will stay with the brand, and 68% will increase their spending with the brand. In stark contrast, only 2% will advocate, 13% will stay, and 8% will increase their spending with the brand when they don’t feel appreciated.
Annoyance, disappointment, and frustration weaken loyalty. On the flip side, on average across the industries, if you make customers feel annoyed, for example, we see that 10% of them will advocate for the brand, 17% will stay with the brand, and 11% will increase their spending with the brand. In stark contrast, 56% will advocate, 52% will stay, and 59% will increase their spending with the brand when they don’t feel annoyed.
According to a recent Customer Experience and Impact study, 53 percent of consumers would pay a higher price for the experiences they value most. But, the most important impact of great customer experiences is loyalty. The majority say they would be more loyal to stores that provided their personal top three customer experience benefits.
- Repeated Business: repeated customer will not only help in increasing revenue but will also recommend that brand to his other friends and known,
- Customer satisfaction : repeated business from old customer shows customers satisfaction and trust towards the brand.
These results show that customers are nearly 5 times more loyal when they feel appreciated than when they feel annoyed. Take note – you will miss the biggest potential gains to customer loyalty if you don’t pull the right emotional levers. Emotion matters.
Conclusion
The customer experience matters and the most compelling experiences do drive increased spend and loyalty. Giving customers what they want doesn’t have to be expensive, it needs to be relevant. Brands who are successful often implement differentiated experiences to simplify the lives of their customers and make them feel valued.
The key is to find out what your customers want and give it to them.
