26 Jun Why Customer Experiences Are The Future Of CRM?
Now, think about the preferred shop you always head to when you run out of supplies or when it’s time for you to obtain its services. Be it the hair salon, the mamak, or the groceries store, all of them will most probably share one thing in common, which is that all of them must have brought you a fulfilling customer experience. Some of them might satisfy your needs and expectations; while some of them might be able to connect with you through their brands and stories. Based on a survey, it suggests that most of the buyers (86%) are willing to spend more in exchange for a good customer experience. As we can see, price is no longer the only thing that customers are concerned about when they make buying decisions. This means that retailers have to be more attentive towards their customers for them to stay abreast in the market or they will have to face the risk of being replaced by other competitors that manage to provide a more fulfilling customer experience. Wondering what has contributed to this change? Let’s take a deeper look at why customer experiences are the future of CRM!
Why Customer Experiences Are The Future Of CRM
- The Growth Of Customer Expectations
- The Rise Of Social Commerce
- The Spike In Retention Cost
- The Growth Of Customer Expectations
Now, recall your first ever online purchase on online marketplaces like Shopee and Lazada. Do you still remember how long it takes for the ordered products to arrive at your house? When the online marketplaces are first launched in the market, it would take around 1 week, sometimes even 2 weeks. As consumers who first experienced online stores, we would be more than happy if the products arrive in less than 1 week. However, how about now? As expectation towards retailers and technologies grows higher and higher over time, we become more demanding than ever. We want the ordered product to be at our doorsteps in 3 days or it would mean a negative “slow delivery” review for the vendor. Thus, this means that retailers nowadays have to be more wary than ever of their customer expectations for them to survive and thrive in the market.
- The Rise Of Social Commerce
Next, social media has given customers a powerful platform to share their experiences with others. One example of a company that leveraged social media is Golden Screen Cinema. When pandemic restrictions to watch movies in cinemas were lifted, GSC’s FB page admin changed their way to engage with their targeted customers. For instance, the admin even used customer language like “jio”( it means inviting in Hokkien) and “water fish”( it means an individual who has been taken for granted in the Hokkien context). And, it has successfully reached many FB users and received more likes than ever on the FB page, making this marketing strategy a huge success. In addition, social media sites like Tiktok, Instagram, and FB that launch marketplaces also contribute to trends of going online shopping with friends. With a friend mechanism, this improves customer engagement with the brands, and it will even lead to a community about the brands that are powered by the customers themselves, generating loyal customers who always stick to the brand.
- The Spike In Retention Cost
According to a survey, it shows that attracting a new customer to your business will cost you five times more than retaining an existing one. In addition, as the number of retailers who use online platforms to generate leads increases, it will be natural that the cost to generate new leads will increase. As the cost to acquire a customer rises, it will be vital for the retailer to retain their existing customer before the lead generation cost eats up all the profit of the business. This means that retailers have to constantly improve their customer experiences to minimize the number of customers who leave them and hence decrease their dependency on new lead generation.
When it comes to improving customer experiences, retailers must look into their Customer Relationship Management (CRM) system. Interested in knowing how your business could leverage CRM tools like E-membership, loyalty point systems, and vouchers? Are you looking for better CRM software or looking to learn more about how you can improve your CRM at an affordable price? Look no further, we’re here to help you cut costs in your company’s operations. Don’t hesitate to reach out to Senwave, for the solutions to all your problems.