Today, we live in a customer-centric world.
The modern business can no longer compete solely on the merits of their product or service. Not only do they have to create a great product, but they have to truly understand their customer and the problem they are helping these customers solve.
Focusing on ensuring your customers succeed is an absolute necessity in today’s world. Not only does this give you the ability to provide a better experience for customers, but taking the time to listen to what they have to say can also give you strategic insights and ideas that you may have never thought about before to help you grow your business and succeed against your competitors.
Customer success isn’t just about having someone purchase your product. It’s when a customer not only purchases your product, but is so happy with using your product that they’ll continue using it and, what’s more, they’ll tell all their friends about it too. Every time a customer succeeds so does your business.
In this article, we’ll be going over the top three reasons why customer success needs to be a priority in your business.
1. Retention is easier (and cheaper) than acquisition
The most obvious benefit of prioritizing customer success is that it is one of the most effective ways of increasing your business’s overall profit and revenue.
According to research by Frederick Reichheld, who also happens to be the inventor of the Net Promoter Score, by increasing the customer retention rate by 5%, a business can experience anywhere between a 25% to 95% increase in profits. Combine that with the fact that it can cost up to 25 times as much to acquire a new customer than it is to retain a new one. It becomes fairly obvious as to why keeping an existing customer is more effective than only trying to acquire new ones.
The reason behind these impressive statistics is that a successful customer is a loyal customer.
Instead of attempting to find a new customer and spending the time and resources in convincing them to do business with you in the first place, selling to an existing customer is incredibly easy in comparison, as you already have a pre-existing relationship with them and they already trust you.
2. It’ll bring in new customers
These days, the modern consumer has an abundance of choice. The average person is subject to thousands of marketing messages a day and it’s becoming increasingly difficult for businesses to cut through all that noise.
But the one thing that has remained consistent is that people naturally trust referrals from people they know. A study by Nielsen found that 83% of people trust the recommendations from friends and family, making referral marketing the most trusted form of advertising.
Not only are customers acquired through referrals more likely to trust and engage with your business right off the bat, but you can also expect a referred customer to spend at least 16% more than those acquired through other means.
Image via Hubspot
By making a customer a happy and ensuring that they achieve their desired outcome every time they use your product or service, you are increasing your chances of having them speak positively about you to someone else. Making it easier for you to not only retain existing customer but also help you acquire new ones via word-of-mouth.
3. The happier your customers are, the faster you’ll grow
Traditionally speaking, businesses have seen a direct correlation between their overall growth and how much their invest in their marketing and sales. What is becoming increasingly clear though, is that customer success is the new engine that drives business growth.
In a study by Hubspot, where they surveyed over 1600 C-suite executives and customer service representatives worldwide, they found that growing companies were 21% more likely to prioritize customer success over companies with stagnant or declining revenue.
Image via Hubspot
Digging in deeper, the study found that the most successful companies made customer success a priority among all their departments, not just limiting it to the department responsible for customer experience. They understood that every single department of the business played an important part, no matter how big or small, in determining a customer’s overall satisfaction and happiness.
Right now we are living in the age of the customer. For businesses and companies seeking to grow, that means prioritizing your customer’s success and happiness can no longer just be lip service.
Looking at the latest studies and research, the direct relationship between customer success and the health of a growing business is obvious.
Taking the time to make sure that your customers are happy with you pays off in a huge way for your business. Not only are happy customer more likely to purchase again, but they’ll also play an active part in bringing in new customers as well.
If you haven’t already begun investing in your customer’s experience and success, then you need start now.