Customer experience is expected to trump price and product as the primary brand differentiator by 2020.
Despite customer acquisition costing five times more than customer retention, several companies tend to focus on getting new customers. This piece says that brands need to prioritise customer experience if they want to avoid customer churn.
Since customers can change their planned purchases due to bad service, brands need to assess and identify how they can improve customer retention. They can do this by seeking feedback from customers and actively make changes to meet customer expectations. Brands should also be open to bringing in an expert to improve customer experience.
The author says that increased customer retention has a direct positive effect on profits. Increasing customer retention by 5% can increase profits by 25-95%, depending on the product or service.
[4 minute read]