Retaining customers is 25 times cheaper than getting new ones
SugarCRM has published a whitepaper that includes research which found that investing in new customers is between five and 25 times more expensive than adapting CX to retain old ones.
The whitepaper explores how rethinking customer experience for your business can help to maintain a customer base throughout a business’s lifespan.
The paper, called Customer Service Essentials for CX Success, prompts companies to rethink the value of customers by taking a closer look at policies and methods previously deemed suitable before the COVID-19 era and weeding them out for greater success.
One such old mannerism was, the report says, the identification of the contact centre.
Customer service departments had previously been viewed as cost centres despite agents serving as the face of the company. It made employees face perceptions of them simply filling unnecessary roles and as a result, cost-saving measures were put in place, which was all part of an experiment to see how far customers could be pushed before they’d cancel a service or move to a competitor.
Experts refer to this method as identifying the “breakpoint,” and it’s blamed for creating a disconnect between what companies think customers expect and what they actually want, the whitepaper adds.
Now, one major trait business leaders seek from contact centre staff is empathy to avoid this pattern of behaviour happening again. Business leaders also seek to empower teams through ambassador roles.
Sales and marketing expert Scott Stratten, who was featured in the report, said: “Support staff gets ‘beaten down’ by complaints while Sales and Marketing get all the praise. Most businesses focus on generating new leads to drive sales. We take for granted the customers we have while going after the ones we want.”
The report also states that customers now expect positive experiences at every stage of the journey, and customer service plays an essential role. This is referred to as the “experience economy” and has a big impact on the company’s bottom line.
Research published in the report found:
The report reads: “To thrive in the new era of experiences, companies will need to rethink the value they place on existing customers. With more than 80% of customers willing to pay higher prices for better experiences, it’s time to stop viewing customer service as a cost centre—and embrace its role as integral to sustainable growth and long-term success.”
The report can be found here.