A company’s greatest good are its customers. If a company cannot convince its existing or potential customers, it will be difficult to do successful business.
The key to success is customer loyalty. We can equate the term customer loyalty with loyalty. But how does loyalty actually come about? On the one hand customers make their experiences with the products, which companies offer. On the other hand they experience processes, which are needed to acquire or return a product. This also includes the entire marketing process and the service processes. The Customer Experience is fed from this experiences.
In addition, there are other factors related to CX, which we’ve explained in the first part of this series of articles. But CX isn’t the only thing to retain customers. There are other factors, as the attitudes and expectations of customers, and external influencing factors, which can’t be directly influenced by a company. Or let’s put it this way, which are not easily influenced by a company itself. This results in customer satisfaction.
Loyalty is fed by customer satisfaction and a good customer experience. This promotes new buying/reuse, referral, revenue per customer, cross-selling and up-selling.
But: If there is a high customer satisfaction and nevertheless a low recommendation rate, then you have a problem!
In many companies there is a very large amount of customer data that has been collected over a very long period of time. The problem here is that these are often data silos. In the past, each department was responsible for its own data and stored it in its own databases. Here it is important to gain insight into these data silos. The individual data silos often contain information that only exists in these silos, but also information that they have in common with other silos. Thus, the silos shown in the following graphic are often found:
As already mentioned, these data silos contain different analysis data. These have to be collected and considered holistically. Only a holistic analysis of the customer experience can identify the most important levers for increasing customer loyalty and the willingness to recommend.
How to analyze this data will be discussed in more detail in our next article. Stay tuned!