Here’s why businesses need to maximise customer satisfaction to maximise profitability
In today’s retail climate, personalisation is everything. To give you an example, let’s consider the following two scenarios:
#1: Your friends and you went to a new coffee shop that recently opened up. The coffee is great, the ambience of the cafe couldn’t be better. You have a good time, you drink the coffee and leave.
#2: Your friends and you visit another coffee place later that day. The place is not as big as the former cafe, but the coffee is good. Before you leave, the owner of the place personally came to ask for your suggestions on what the staff can do to offer you a better service.
Though it may not look significant, customer experience is important, and giving your customer a unique feel of your product/services is no less than an art. The best-planned strategies not only ensure the loyalty of your customer but also happen to be the best marketing you can do for your business: the word of mouth marketing, allowing your customer to draw more people to your business.
An average business loses 10% of its customers each year while cutting customer losses by 5% can boost profits by 25 – 125%. By maximizing customer satisfaction, you can retain customers for longer so that they continue to make a contribution to revenue and profitability. This has a further effect on profitability because the cost of acquiring new customers is much higher than the cost of increasing sales to existing customers.
In this technological day and age, businesses are finding new ways of connecting to their customers. A study finds that companies that deploy chat have higher revenue and a better retention rate. The importance of establishing customer satisfaction can be guessed through the fact that many studies have found that the Customer Engagement Solutions Industry, valued at $15 Billion in 2020 is expected to reach $31.1 Billion by 2026.
TL;DR: Maximising customer satisfaction can immensely impact your profitability. Embracing technology, encouraging personalisation and strategising your marketing campaigns may be a few ways to enhance retention and satisfy your customers. Many luxury brands are built on great customer experiences that allow them to not only retain their customers but also bring in more of the same. A research points out that about 77% of customers are likely to recommend a brand following a positive experience by them. Customer engagement, especially when it comes to luxury brands, benefits both, the brand as well as the customer by making them know more about the other. Many premium brands organise VIP events for their loyal customers, allowing them to test new products while also adding a new dimension of relationship. This just goes to show how far an unforgettable customer experience can go in the growth of a business.
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