2. Building a Loyalty Club will significantly reduce your cost of acquisition
Winning a new customer can be costly – 7x as much as retaining an existing customer . Investments in existing customers is therefore a profitable choice and it is but a short time until one sees positive results. Building customer loyalty through an enhanced CX framework could not only drive revenues through enhanced sales, but also help rationalize costs by driving down costs for acquisition.
The importance of CX here is highlighted by a Walker study, which found that by the end of 2020, CX will have overtaken both price and product as the key brand differentiator.
Did you know that 95% of people who had a bad experience are willing to give the brand another go if they know their issue has been dealt with correctly? * *Source: https://www.questionpro.com/blog/mechanics-of-detractor-recovery/
3. Customers are your biggest marketers
Word of mouth happens to be perhaps the most important marketing channel that a business can pursue today. With 84% of the consumers surveyed not choosing to trust advertisements anymore, it is evident that buyers are now increasingly relying on third-party validations for purchase decisions, especially online ones. A happy customer who is willing to make a recommendation is therefore the best ambassador for any business.
It is interesting to note here that according to Esteban Kolsky, 72% of the customers surveyed were willing to share a positive experience with 6 or more people. On the other hand, if a customer was not happy, there was a distinct possibility of their adverse views reaching 15 or even more compatriots.