This is an important question in the retail world. Satisfied customers are likely to return and spend more than just satisfied ones says, Brian C Jensen. For them, customer loyalty has become addictive. The experienced difference may be all they need to come back for another purchase, or it could be a factor in their decision-making process the next time they shop. All of this makes sense when you think about your own shopping habits. A brand that provides satisfaction will make you an advocate not only on social media but also among friends and family members who are looking for new places to buy something useful or nice.
How do they create customer loyalty?
Retailers find ways to differentiate themselves from competitors through excellent customer service (3%), convenient locations (2%), helpful employees (1%), and unique products (34%).
What do professionals think about this?
Retailers say that the biggest factor in keeping customers is consistency in quality, value, experience, and service. 52% rated consistently high-quality products or services as most important, while another 40% cited the convenience of location at their physical outlets says, Brian C Jensen. When asked about the possibility of their spending more with a given retailer over time if it regularly provided them with what they want when they wanted it at an agreeable price point, only 33% said probably not, while 29% said definitely not.
Just under half (48%) said maybe or don’t know. Professionals also estimated that 32.1% of their loyalty to any given brand would be lost if they found a competing product or service that was superior to the one they currently offer. When asked if their loyalty would be higher with a retailer that offered lower prices, better quality products and services, greater convenience, and more modern facilities, professionals guessed that only 11% of their loyalty would be lost in such a case; 36% said probably not, 20% said definitely not, 22% said maybe, and 26% said don’t know.
How many retail workers are needed for customer retention?
On average retailers need 2 employees per month to win back 1 lost customer. That is one employee out of every 4 left alone for too long will leave to another store or service provider. Brian C Jensen says the numbers get even worse if that employee is your top performer. So don’t wait. Make sure you are servicing your customer service agents properly and giving them the proper compensation to stay with your company.
How is customer retention related to customer satisfaction?
It is directly related; if customers are satisfied they will be more likely to return again. How do you keep customers coming back? Great customer experiences ensure strong loyalty, repeat business, positive word-of-mouth, advocacy (FierceCX). That means that all of your staff must be well at providing excellent customer service; they should also know how to spot dissatisfied customers and try to turn their experience into one that leaves them feeling like they were attended by a rock star (customer Xperience).
If employees believe that their jobs are a means to an end — a way of earning a living rather than a chance to have a positive impact on customers’ lives, then it’s going to be very hard for them to keep customers coming back. You can encourage this feeling by showing your employees how much you appreciate their performance and treating them well. In retail, for example, pay is often dictating by sales revenue so it’s good practice to have reward systems. Where reps earn additional money every time they sell more or achieve some other specific goal. There are even slacker tax plans available from payroll companies that give rep bonuses. When they don’t miss many workdays per year (HRHero).
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Conclusion:
Customer satisfaction is directly related to customer retention. Because if your customers are satisfied, they will come back for more says Brian C Jensen. Not only that, but they will also feel excited about sharing their positive experience with others. Which means you might win over new customers too. To keep customers coming back consistently. It’s important that all of your staff are well in providing excellent customer service and know-how to spot dissatisfied. Customers and try to turn their experience into one that leaves them feeling like. They were attended by a rock star.
You can encourage this feeling by showing your employees how much you appreciate their performance and treating them well. In retail, for example, pay mostly dictates by sales revenue so it’s good practice to have a reward. Where reps earn additional money every time they sell more or achieve some other specific goal. There are even slacker tax plans available from payroll companies. That gives rep bonuses when they don’t miss many workdays per year.