Embed Size (px)
Citation preview
BRANDED EDITORIAL 1
CUSTOMER LOYALTY1TO1 MEDIA IN ACTION SERIES
Building a Foundation for Customer Loyalty
1TO1 MEDIA IN ACTION SERIES
Read more from the 2015 In Action Series: www.1to1media.com
BRANDED EDITORIAL 2
1TO1 MEDIA IN ACTION SERIES
Read more from the 2015 In Action Series: www.1to1media.com
Four Ways to Keep your Loyal Customers Happy
Turning Complaints into Compliments
InsideTeleTech
Verint
4
6
Building a Foundation for Customer Loyalty
The ability to identify customers at any touchpoint and provide them with personalized
and fluid experiences is critical for creating and sustaining allegiance.
Companies typically focus on acquiring customers as the fastest route to increasing
sales. However, organizational leaders often don’t realize the untapped potential in their
current customer bases.
According to the Cross-Channel Marketing Report 2014 conducted by Econsultancy,
44 percent of companies place a greater focus on customer acquisition versus 18
percent that focus on retention. What’s often lost in the shuffle is that loyal customers
offer companies compelling business value. For example, while the probability of
making a sale to a new prospect ranges from 5 to 20 percent, the likelihood of selling
to an existing customer rises to 60 to 70 percent, according to Marketing Metrics.
Meanwhile, research also reveals that 80 percent of a company’s revenues are
generated by 20 percent of its customers.
Nurturing this 20 percent of customers to strengthen their loyalty means companies
must have a deep understanding about them. This includes information about what’s
important to individual customers as well as historical information about each of their
preferences, needs, purchases, and the touchpoints used to interact with a company.
As TeleTech points out (page 4), having such insights affords companies the ability
to identify customers across all their touchpoints in order to provide them with
BRANDED EDITORIAL 3
CUSTOMER LOYALTY1TO1 MEDIA IN ACTION SERIES
Read more from the 2015 In Action Series: www.1to1media.com
personalized and relevant experiences based on what’s
known about their interests and needs. For example, an
electronics retailer can personalize a chat invitation to
a customer who is browsing its web pages for washing
machines with an offer to assist. These types of interactions
will help to engender loyalty because they feel genuine to
customers who have grown tired of companies treating
them like prospects every time they visit their websites.
Having rich insights helps companies personalize customer
experiences, but when paired with data analytics,
information becomes even more powerful. The effective use
of data analytics can help decision-makers make critical
decisions that affect the bottom line, such as pinpointing
customers who are about to defect and crafting relevant
retention strategies based on their histories and interactions
with the company.
“In any given population of customers, different customers
will always have different likelihoods of remaining loyal,” says
Don Peppers, founding partner of Peppers & Rogers Group.
“Some customers are more prone to defection than others
and are more likely to leave first.”
Since some customers are, by nature, more loyal than
others, it’s possible to craft sales strategies that appeal
specifically to those customers with a proclivity toward
loyalty, says Peppers. For instance, an automotive
company can offer salespeople commissions that are
based not only on the initial sale of a car to a new customer
but also on a percentage of any additional business that
customer generates over the next several years, including
other cars he may purchase, service visits, referrals, etc.
Taking preemptive measures
While analytics serve a crucial role in personalizing the
customer experience, they also work well in detecting and
reducing complaints—another step in building customer
loyalty. As Verint notes (page 6), “for every customer who
complains directly about your business, there may be many
more who are equally dissatisfied but don’t bother to voice
their frustration.”
According to Verint, there are many ways to resolve
complaints and build loyalty. One is through the use of
speech and text analytics to quickly detect complaints.
Through a wide range of social media monitoring and
voice of the customer tools, companies can easily listen
to customers at critical steps throughout their journeys
and take proactive measures to remedy issues before they
blossom into larger problems. Using the most appropriate
retention tactic will not only help to retain the customer, but
could also help build brand loyalty.
Another effective way to build loyalty with customers is by
providing them a variety of outlets to voice their opinions
and share their feedback. Digital communications channels
such as social media enable customers to communicate
issues or challenges they may experience. Making it easier
for customers to share their feedback can create greater
transparency between a company and its customers while
providing opportunities to strengthen relationships.
When it comes to their experiences with companies
across channels, customers expect the best. They
also have little patience for brands that aren’t able to
meet their expectations. Companies that develop a
keen understanding about their customers and strive to
continually address their preferences and needs position
themselves to deliver the types of experiences that
engender loyalty and long-term customer value.
Retailers and manufacturers that take
meaningful steps to drive customer loyalty
are 88 percent and 60 percent more
profitable than their competitors that don’t,
according to Deloitte. Leaders are defined
as companies that have clearly articulated
strategies to acquire, develop, and maintain
relationships with customers.
“Serving the Networked Consumer,” June 2015, Deloitte. Base: Interviews with 125 global retailers and 60+ manufacturers.
Customer Loyalty Efforts Pay Dividends
Since some customers are, by nature, more loyal than others, it’s possible to craft sales strategies that appeal specifically to those customers.
— Don Peppers, Founding Partner, Peppers & Rogers Group
+ =Customer-centric
strategy
Passionateemployees
Customerloyalty
“...those who take meaningful steps to drive consumer loyalty are 88% more profitable than their competitors who do not.”
—Deloitte research study-”Serving the Networked Consumer”
4
CUSTOMER LOYALTY1TO1 MEDIA IN ACTION SERIES
Marketers know that winning customers is
only half the battle; retaining them includes a
slew of other challenges. It often takes only
one negative experience to lose a customer.
But given that acquiring a new customer
costs six to seven times more than retaining
an existing customer, it’s worthwhile.
However, it can take several months or
years before a customer becomes profitable.
Improving customer loyalty should be
a priority, otherwise those customers—
and profits—you worked so hard to win
could vanish. But are you keeping your
customers happy? Here are key questions
organizational leaders should ask themselves
when assessing their strategies for customer
satisfaction and loyalty.
1. Do you really know your customers?
Creating a unified view of your customers
that is shared across the organization is
critical. When customers reach out to you,
do you know who they are? “Do you know
how long they’ve been your customer, what
they’ve bought from you, where they are,
and other details?” asks Mike Betzer, CEO
at Humanify. “Loyal customers expect to be
acknowledged and rewarded for
continuing to give you their business.”
Loyalty programs are an effective way
to keep track of your customers, but
associates must also be given the tools
and training to properly greet returning
customers.
For example, United Airlines is giving its
attendants iPhones loaded with a customer
service app that provides basic customer
information to improve how they interact
with passengers. With this information,
an attendant could wish a passenger a
happy birthday or congratulate someone
on reaching a certain number of frequent
flyer miles. Sometimes the smallest things
can make a customer feel special and
appreciated.
Additionally, biometric tools that are built
into smartphones, such as fingerprint
scanning and voice recognition, help
people become “known customers” more
easily by allowing brands to quickly identify
them. “Known customers can be treated
and served up more relevant content and
customer experiences,” Betzer says.
2. Are you letting customers help themselves?
Acknowledging the customers’ preferences
is critical. For instance, there are times when
customers don’t want the high-touch, white
glove treatment; they just want a quick
answer. Offering an FAQ section on your
website or an IVR system for callers is not
enough, however. Savvy companies provide
a “fun, interactive experience” through a
mobile app, chat service, or other channel
that allows customers to get the help they
need quickly, in addition to having an
enjoyable experience, Betzer notes.
And whether you’re providing help through
a chat box or a phone call, it is also
important to ensure that associates are
equipped with the right information, such
as the customer’s prior actions, website
journey, and keyword searches so that the
associate can make informed decisions
and recommendations.
Personalized experiences, helpful tools, and a simple ‘thank you’ can go a long way.
Four Ways to Keep your Loyal Customers Happy
BRANDED EDITORIAL
Improving customer loyalty should be a priority, otherwise those customers—and profits—you worked so hard to win could vanish.
5
CUSTOMER LOYALTY1TO1 MEDIA IN ACTION SERIES
Online help communities are another
good idea. Creating a portal for customer
advocates to offer advice and helpful
information to other customers of your
brand offers numerous benefits. Customer
advocates amplify the brand through word-
of-mouth marketing and can help solve
product or service issues that brands were
not even aware of. Remember to thank your
customer advocates with special perks like
early access to new merchandise or other
rewards.
3. Do you have an app strategy?
In today’s mobile-first world, apps are
quickly becoming integral to the customer
experience. “The chances are high that
those who choose to download your app
are among your most loyal customers,” says
David James, director of product marketing
at Humanify. But it’s not enough to offer a
bare-bones app. “The app can’t just be an
extension of your website. If that’s the case,
you’ve really missed an opportunity. The
app should offer an inherent value that can’t
be achieved on the standard website. This
ultimately improves the overall customer
experience,” he adds. A helpful app feature,
for example, could be one that helps users
find your brand’s closest store or offers
personalized rewards and coupons based
on location or purchase history.
4. Do you have an omnichannel communication strategy?
It is also important to maintain an open
dialogue with your customers and allow
them to communicate with you. Letting
your customers know that their opinions
matter builds trust. But remember that
customers don’t think in channels; they
think in terms of solutions. Therefore,
making sure you have the infrastructure in
place to track and respond to comments in
a timely and seamless manner is the key.
Not all customer suggestions are practical,
but it’s important to let customers know
which suggestions have been implemented.
Starbucks, for example, created
MyStarbucksIdea.com as a place where
customers can submit ideas and see which
ones have been put into action.
Customers are a fickle group. Even after
putting all of these initiatives in place, some
people will still walk away. Regardless,
giving customers a reason to return will
ultimately pay off.
Four Ways to Keep Your Customers Loyal
BRANDED EDITORIAL
Want to learn more about how we power marketing? Visit teletech.com
Remember to thank your customer advocates with special perks like early access to new merchandise or other rewards.
BRANDED EDITORIAL 6
CUSTOMER LOYALTY1TO1 MEDIA IN ACTION SERIES
Want to learn more about how we power marketing? Visit www.verint.com
If there’s one thing worse than a customer
complaint, it’s not seeing a complaint at all.
For every customer who complains directly
about your business, there may be many
more who are equally dissatisfied but don’t
bother to voice their frustration. These
customers may simply stop doing business
with you, without giving you an opportunity
to recover the situation.
Complaints are inevitable, and customers are
unpredictable. It’s impossible to anticipate
every customer service scenario. However,
though it may seem strange, complaints
can be beneficial for your business if you
view them as opportunities to positively
influence customer experiences and loyalty
by handling them effectively.
You may have seen research showing that
customers who voice complaints are more
likely to repurchase if their complaints
are resolved than those that didn’t have
a problem to begin with. This implies
that customers understand that mistakes
happen. When issues are resolved to their
satisfaction, it can build trust. From a
business perspective, a complaint is another
moment of truth with the customer, another
touch point — and another opportunity to
impress.
In the age of digital customer engagement,
falling back on old complaint handling
processes is no longer enough. Here are
some best practices that can help you build
a foundation for customer loyalty:
1. Make It Easy to Complain
Don’t hide customer support in a dark corner
of your website and offer customers poorly
designed service landing pages. This can
give the impression that customer service
is almost an afterthought. Progressive
organizations have their social media
channels and other support links right on
their main landing page.
2. Know Your Customers
The preferred channel used to engage with
your organization varies by person and
even by age group. Know your customers,
understand their engagement preferences,
and offer them the appropriate channels.
3. Think Omnichannel, Not Multichannel
Omnichannel takes the multichannel
concept of customer service a step further
by considering customer journeys and the
transitions customers make between channels
during a customer service engagement.
Be sure to take the customer journey into
account, as well as the transitions between
channels before deciding which customer
service channels to deploy.
4. Optimize Processes
All the work you’ve done to digitize customer
channels will amount to nothing if it triggers
a poorly orchestrated complaint resolution
process. Examine your complaint process
from end-to-end and think of ways to
optimize it. This frequently entails bringing
together teams from numerous functional
areas within your business.
5. Analyze and Act
Speech and text analytics can help you detect
complaints quickly from large numbers of
interactions. But don’t stop there. Instead of
waiting for complaints to come to you, you
can find them on your own. By using social
media monitoring, online communities, and
enterprise feedback management technology,
you can listen to customers, solicit feedback
and take proactive action. This approach
enables you to identify and remedy problems
before they become much bigger issues.
As the impact that complaint management has
on customer loyalty becomes clearer, many
organizations are evolving their approach
by making it easier for their customers to
complain. Discover how Verint® can help
you capture, analyze, and act on customer
complaints—and improve loyalty.
Five Best Practices to Help You Get Started
Turning Complaints into Compliments
Though it may seem strange, complaints can be beneficial for your business if you view them as opportunities to positively influence customer experiences and loyalty by handling them effectively
BRANDED EDITORIAL 7
1TO1 MEDIA IN ACTION SERIES
Read more from the 2015 In Action Series: www.1to1media.com
TeleTech9197 South Peoria Street Englewood, Colorado 80112
800.835.3832
teletech.com
Verint330 South Service Road Melville, NY 11747 USA631.962.9600 1-800-4VERINT
TeleTech (NASDAQ: TTEC) is a leading global
provider of customer experience, engagement
and growth solut ions. Founded in 1982,
the Company helps its clients acquire, retain
and grow profitable customer relationships.
Using customer-centric strategy, technology,
processes and operations, TeleTech partners
with business leadership across marketing,
sales and customer care to design and deliver a
simple, more human customer experience across
every interaction channel. Servicing over 80
countries, TeleTech’s 41,000 employees live
by a set of customer-focused values that guide
relationships with clients, their customers, and
each other.
Verint® Systems Inc. (NASDAQ: VRNT) is a
global leader in Actionable Intelligence® solutions
and value-added services. More than 10,000
organizations in over 150 countries use our
solutions to improve enterprise performance and
make the world a safer place.
Verint. Powering Actionable Intelligence®
For information on upcoming installments of the 1to1 Media In Action Series, contact:
Dara Brooks | [email protected]
1TO1 MEDIA IN ACTION SERIES
