{"id":3535,"date":"2022-01-11T11:24:02","date_gmt":"2022-01-11T11:24:02","guid":{"rendered":"https:\/\/news.sap.com\/india\/?p=3535"},"modified":"2023-08-14T17:34:19","modified_gmt":"2023-08-14T17:34:19","slug":"5-proven-strategies-to-drive-customer-retention","status":"publish","type":"post","link":"https:\/\/news.sap.com\/india\/2022\/01\/5-proven-strategies-to-drive-customer-retention\/","title":{"rendered":"5 Proven Customer Experience Strategies to Drive Retention"},"content":{"rendered":"

As you find yourself amidst a traffic jam, absorbed in a podcast, you probably realize that times are very different now. Even though traffic moves at a snail pace, the information reaching you is at warp speed. Your listening experience depends on your network provider and the quality of the broadcast. You are probably multitasking as well, reaching your favorite brands through multiple channels, their social handles and online store.<\/p>\n

For brands, the customer journey is no longer linear. For the customer, it means the experience needs to be consistent across these omni channels. There\u2019s no doubt that customer experience is a priority for both businesses and technology leaders, mainly because customers are now digital. Since customers are now online anytime, anywhere, their expectation is for brands to be available as well and provide excellent customer experience.<\/p>\n

About 80 percent of the brands believe that they offer superior customer experience, but only 8 percent of customers agree, according to an Adweek and Accenture\u00a0research<\/a>.<\/p>\n

\"Customer<\/p>\n

Is Customer Experience the Same as Customer Service?<\/strong><\/h2>\n

Customer service is just one part of the customer journey, whereas the cumulative interaction that a customer has with a business is known as customer experience (CX). This includes both pre & after-sales experiences. Customer service<\/a> is usually initiated by the customer and is reactive. The purpose of customer experience is to deliver meaningful and positive experiences through a strategic approach.<\/p>\n

The mission and vision of a company, marketplace data, consumer research and competitive insight plays an integral role in developing an effective CX strategy. A successful CX strategy not only involves employees who directly interact with the customers but also stakeholders across all departments.<\/p>\n

Insights and feedback from all departments will help an organization achieve its key CX objectives \u2013 improve the relationship with the customers.<\/p>\n

Seismic Shift in Customer Experience<\/strong><\/p>\n

Up until a few years ago, customer experience and employee experience were not viewed the same. This has changed now since a clear connection has been established between customer experience and those of employees. According to an IDC\u00a0survey<\/a>, 85% of respondents believed that an improved employee experience and higher employee engagement translate to a better customer experience, higher customer satisfaction, and higher revenues for their organization.<\/p>\n

Brands now understand that a happy employee who is enthusiastic and motivated at work can provide the same experience to the customers.<\/p>\n

Customer behavioral shifts have led to the transformation of customer experience and how it\u2019s perceived. Earlier, the customer interaction was one-to-one, but now it\u2019s one-to-many. Here, the customer can access your brand across multiple touchpoints (online and offline stores, social handles, etc.). Each of these touchpoints needs to provide the same experience.<\/p>\n

Enlightened with this mantra, brands are beginning to focus on the lifetime value of the customers. That\u2019s customer retention.<\/p>\n

It is crucial as it helps in understanding your customer and their journey with your brand. You must be informed about their first purchase, how they made it, what made them do it and how they developed a bond with your brand.<\/p>\n

What Is Customer Retention?<\/strong><\/h3>\n

An organization\u2019s ability to retain its customers or customer loyalty is measured with the help of a metric known as customer retention. Customer retention can predict or reflect emotional ties to a brand, customer engagement, repurchase behavior and customer satisfaction.<\/p>\n

It can also help to identify the number of loyal customers.<\/p>\n

The first interaction is the inception of a customer relationship. Customer retention metrics kick in from the moment a customer makes the first purchase and gauge all subsequent interactions.<\/p>\n

Organizations use the customer retention data to perform analysis on components of customer success and customer experience. These metrics help flag negative customer retention figures. This, in turn, enables companies to identify the reasons behind the drop and adjust product propositions accordingly.<\/p>\n

It is more cost-effective to retain existing customers than to acquire new ones. Furthermore, retained customers are more likely to become brand ambassadors for the company.<\/p>\n

These factors make customer retention an indispensable component of any effective customer experience strategy.<\/p>\n

Measuring the Key Metrics of Customer Retention<\/strong><\/h3>\n

Customer retention is measured using retention rate and is monitored continuously. To determine the rate, an organization identifies the period that it wants to record. This could be up to a month, a fiscal year, or more.<\/p>\n

Retention rate is also determined using the following factors:<\/p>\n