Armed with loyalty and purchase-behavior scores and Customer Lifetime Value metrics to measure what a customer is truly worth, you can dramatically impact your organization’s bottom line. But having the scores isn’t enough: you have to understand how to measure, affect, and increase customer loyalty through customer experience design.
How to leverage customer experience to increase loyalty:
- Deliver the right experiences: First, learn which experiences are most valuable to customers, in order to put levers in place to directly affect loyalty.
- Invest in individual touchpoints: Research can illuminate which touchpoints have the greatest potential to increase customer loyalty, and point the way for organizations to invest in those that increase it – and eliminate or modify touchpoints that don’t.
- Improve the post-purchase experience: Make sure your customers stay happy – and loyal – after the sale. For some companies, a 5 percent reduction in churn can translate to a 25-85 percent increase in annual profits.
- Build a feedback loop: You’ll be able to deal with complaints more effectively and improve delivery overall. Oracle reports that brands can lose as much as 20 percent of revenue from poor customer experience. In a typical $40 million retail company, this could positively affect the average $8 million at risk from customers who have had a poor customer experience.