Smart marketers already understand the value of customer retention. Existing customers are five times more likely to make a repeat purchase, seven times more predisposed to try a new offer and four times as likely to refer. Improving the customer experience is high on any marketing manager’s list, whether you’re running an online platform, or a bricks-and-mortar store. But as is the nature of business and society, marketing is constantly evolving. Emphasis is shifting from retention only, to customer collaboration as well. How efficiently a company captures and makes use of customer feedback to improve the experience will define its ability to adapt to trends and remain competitive.
According to Tracy Lotz, founder and CEO of LiveRez vacation rental software, companies typically have many touch points with their customers and plenty of areas to encourage collaboration. He explains, “At LiveRez, we’re able to be in step with them on what really matters to their business and how we can fill those needs. I think the thing that really sets us apart is how much interaction we have with our customers.”
Collecting Customer Feedback
There are multiple channels to collect customer feedback to help you understand why they interact with your offering in a certain way, or what makes one feature more popular than another. Some of the best ways to acquire consistent, high-quality feedback, according to Kissmetrics, include surveys, feedback boxes, user activity and usability tests, and simply by reaching out and asking. With an increase of business intelligence tools, heatmaps and analytics to measure user activity online, or even track customer movements in-store, sometimes the simplest methods are overlooked. Taking time to speak with your customers individually will give you a clearer idea of exactly what is going on (and give you extra brownie points if you treat them to a nice lunch, or discount voucher).
Companies should also be making active use of their online communities, newsletters, and communication dashboard, if they have one. Lotz confirms: “We collect feedback in our online community and send out surveys. But, we don’t stop there. We actually will invite some of our customers to review the progress we’re making on the new functionality, so we can understand if we’re headed in the right direction.”
Keeping Your Customers Onboard
By 2020, the customer experience is predicted to overtake both product and price in distinguishing one firm from another. Keeping your customers loyal, engaged and happy is vital to securing their repeat business. But with so much competition facing the average firm just a few mouse clicks away, how do they keep their customers on board?
Consider Jeff Bezos’ internet giant, Amazon, venturing into just about every corner of our lives. Despite accounting for a staggering 43% of all online retail sales in the US in 2016, they still understand the importance of customer engagement. They reward their customers by giving back through irresistible offers and deals, such as Amazon Prime Days for prime members. B2B affiliate programs, special member discounts and incentives can all prevent customers from straying to the competition, as can revenue sharing models.
Lotz reveals, “LiveRez has a business model that is a revenue-share model, which causes every facet of our business to be focused on the same things our customers want: success. We win when they win. We lose when they lose. We focus immediately on building relationships and setting their business up for success with our software.”
From a business perspective, this type of financial model incentivizes a company not only to keep their users engaged, but to help them become more successful. “We really do strive to make sure they’re actively using our technology to grow their businesses,” stresses Lotz.
One-on-One Contact
Lotz has found that one-on-one contact is particularly effective in fostering client relations. By hiring individuals with relevant experience to work alongside a specific client, according to Lotz, “They’ve taken on a role where they proactively reach out in a consulting capacity, troubleshoot high-level business problems and share best practices.”
Even previously criticized platforms like PayPal and Upwork are improving their customer service, making it easier for customers to get in touch and have their problems resolved through one-on-one contact. Devising programs that reward their best clients, through lower commissions or reduced rates.
Another great way of getting face-to-face with your clients is by hosting events to deeply understand their pain points and business models. Lotz shares, “One of the biggest ways we keep partners engaged is with our annual user conference. We go all out and bring our whole team of employees, so our customers really have an unprecedented amount of access to get their questions answered.”
Collaborate with your clients to solve their big problems and help them succeed. You will get on the ‘same side of the table’ with them in the process.
