How Does Customer Success Lead to Revenue Growth?
One of the most important parties in the tech business is not the investors nor the ideation masters. The customers who call the shots and make the wheel of fortune turn in favor or against a brand today are the customers who have insurmountable power over the market. They are responsible for making trends and products viral or turning brands into a flop, which is why every company must focus on customer success rates.
89% of customers are likely to make a repeat purchase if they have a positive customer service experience. Beyond good use case studies and being a fan favorite, it directly affects your business’s pockets! This ten-minute read will take you on the journey of understanding the true relationship between customer success and revenue. Let’s get started right away!
Why good businesses value consumer relationships
One of the hallmarks of running a successful software business is assessing how customers view your services and products. Gaining brand loyalty from existing customers plays a far more crucial role than perceived.
While 33% of people agree that they would disregard buying from a brand after the first bad service instance, 60% conceded that a second bad experience with the said brand would drive the nail in the proverbial coffin. Paying attention to your production quality, staff training, and getting the right software development staff augmentation team is far more necessary in the age of AI. Providing good business based on high-quality products, top-tier services, and consistent improvement of the brand value will ensure that you see tangible growth on the charts.
How customer success leads to quantifiable ROI
Customer satisfaction leads to retention
The majority of companies agree that focusing on customer satisfaction leads to greater retention rates. However, very few of them truly pay attention to customer retention. In the era of digital marketing and transformation, competitors are easily accessible to your customers and it is simpler to lose them if you don’t provide stellar customer experiences. This goes far beyond pricing as a factor, we’re talking about things like ease of use, post-sales customer care, the feedback system, loyalty programs, and much more.
Customer retention leads to brand loyalty
Today, millennials form the biggest part of the customer base that brands target unless they are very user-specific. With benefits to having a generation willing to experiment and give brands a shot, there is also a huge detriment. Gone are the days when retaining customers only required providing some convenience. Today, the millennials and other generations of customers know that they have an endless sea of options if they want to switch brands. Gaining their loyalty has more to do with being irreplaceable through trends and fads. If you don’t want your existing customers to move to the next best thing, retaining them with various strategies will bring brand loyalty.
Brand loyalty creates market goodwill
What does a brand represent from the customer’s perspective? These include credibility, reputation, brand value, positive PR, and a market presence that cannot outshine. Having an army of loyal customers towards your brand is increased goodwill. These customers actively give you your money instead of purchasing goods and services. Several customers buy shares and stocks of reputed brands.
Attracts new and profitable customers
Apart from gaining new investors and stakeholders, a business can gain even more when it comes to an improved customer success rate. The chances of you attaining a new customer is only between 5 to 25%, which means investing in your existing consumers and ensuring they are happy with your service is the key to earning profits. Where their rates of converting new customers were slow, it now becomes simpler to have several new clients due to increased confidence. Thanks to happy customers, your reputation can create shockwaves that help potential audiences that we’re unaware of your brand find you.
Bringing it all together
If your brand is suffering from poor reviews and a lack of trust your company can have a domino effect on your churn rate. However, it can be the inverse as well, being used to define success that can bring an infinite yet quantifiable series of benefits resulting from doing things right. When a company focuses on customer experience and satisfaction, revenue growth. However, they also earn several things along the way, as described in this article.
We hope you found this read exciting and learned valuable insights from us! For more such stimulating topics, stay tuned!