2021 is the time to put customer needs at the forefront. In the age of empowered customers, companies need to go the extra mile to find out what the customer really wants in order to earn their loyalty and establish a lasting relationship. Did you know that client-centric companies are 60% more profitable (Deloitte)?
Customers expect brands to offer relevant perks to them and respond to their unique needs through personalization and effective loyalty programs. This is why businesses are doubling-down on customer-centric marketing strategies. According to Harvard Professor Ted Levitt, “People don’t want to buy a quarter-inch drill; they want a quarter-inch hole.” Customers want to know what your products can do for them beyond simply features and functionality. It’s all about empathy, listening intently and implementing based on customer feedback. A customer-centric business constantly evolves, understanding their customers and making each customer feel valued. According to American Express, one happy customer brings eight referrals, which results in more leads and more sales.
Data from a variety of studies shows that customer-centricity improves financial performance and provides a competitive advantage:
- Seven out of 10 U.S. consumers say they’ve spent more money to do business with a company that delivers great service.
- Increasing customer retention rates by 5% increases profits by more than 75%.
- It’s almost 25 times more expensive to acquire a new customer than it is to keep an existing one.
- Customers who rate a company as delivering a good customer experience are 34% more likely to purchase more and 37% more likely to recommend the company.
In order to be a successful customer-centric company, it’s important to completely understand what influences your customers, their values, desires, behaviors and expectations. Which means you must integrate individual data, brand awareness data and aggregate data. A loyalty platform and program is an efficient way for a brand to collect and leverage this data. If you understand your customer’s motivations fully, you’ll be able to use the data to create unique experiences for your customers. For brands like Starbucks and Zappos, this has been crucial to building lasting loyalty.
Here are some benefits of being a customer-centric brand:
- A good customer experience can lead to positive online reviews which will further drive incremental revenue growth.
- A customer-centric journey enables you to understand their preferences and interests, enabling you to create loyalty strategies for long-term retention.
- Personalized experiences lead to more satisfaction and sustained loyalty. Fully connected customers are 50% more valuable than a highly satisfied customer.
- Consumer orientation helps you segment your customer base. It allows you to attract and nurture your best clients, and increase their lifetime value as you adapt your strategies based on their needs. According to the Center for Retail Management at Northwestern University, 15% of a company’s loyal customers are responsible for 60% of their total sales.
- Being customer-centric will give you a unique competitive advantage and allow you to identify opportunities for growth.
- A customer-centric brand that incentivizes their customers and incorporates loyalty rewards can create emotional, lasting bonds. Instead of just rewarding customers with monetary perks like free shipping, coupons or free gifts with a purchase—companies are finding success by curating experiential rewards with unique value-adds such as trips, event tickets, exclusive access and more.
Annex Cloud knows successful programs aren’t one-size-fits all. Different reward structures and incentives can accomplish different goals. Our advanced customer retention and loyalty solutions are designed to engage and reward your most valuable and profitable customers. One of our clients, Sugarfina, a premium boutique candy company that dishes out awesome incentives, increased their revenue by 15% and repeat transaction frequency by 57%. Call for a demo today.