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Customer Service Superpowers: How to Keep Customers Coming Back in the Age of Skyrocketing Marketing Costs
The challenge that business owners face today is a familiar one: marketing costs are skyrocketing, and finding new customers is an uphill journey. In such a scenario, customer retention becomes the key to survival and growth – but how do you ensure that customers keep coming back?
The answer lies in leveraging your customer service superpowers.
In this article, we'll share insights from a survey of business owners who are worried about customer acquisition costs. We'll also provide some great strategies for creating a loyal customer base and growing your business, even in challenging conditions.
Connect with customers
LiveChat is a complete customer service platform that delights your customers and fuels your sales.
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The trend of rising marketing costs
Business owners have experienced a significant increase in customer acquisition costs in recent years, with losses per new customer rising from an average of $9 in 2013 to $29 today. This represents a staggering 222% surge in expenses.
Insights from the Lightspeed survey of business owners
A survey of business owners conducted by Lightspeed also brings some insights on this front, highlighting business owners' concerns:
- A whopping 65% of respondents have reported a rise in their customer acquisition costs.
- 30% of the respondents say they have seen a significant increase. Among these, two-thirds are experiencing greater difficulty in attaining their desired return on investment from advertising.
- As many as 88% of merchants expressed concern about the potential negative impact of rising costs on their businesses.
- 36% of respondents are very concerned about the potential negative impact of rising costs on their businesses.
- More than half of the business owners surveyed say they are likely to invest more in customer retention due to rising costs.
Implications of rising marketing costs for businesses
The trend of escalating marketing costs leaves businesses struggling with the following:
Reduced profit margins
When businesses spend more on marketing, it raises their operating costs. This can lead to a significant decrease in net profit, even if sales stay the same. Smaller businesses with tight margins may find this profit reduction particularly difficult.
Fiercer competition
As marketing costs increase, businesses must strive harder to stand out and capture the attention of potential customers. This competitive environment heightens marketing expenditures, as staying silent in a crowded marketplace is not an affordable option.
Limited budget for customer acquisition
When marketing costs rise, the budget for acquiring new customers decreases. This can slow down business growth as they strive to attract customers without overspending on marketing.
However, don't let the statistics and survey data discourage you. The good news is that there are ways to keep your business thriving despite rising marketing costs. By using the power of customer service, you can retain existing customers and attract new ones, all while keeping your budget in check.
The power of customer service in retaining customers
The correlation between customer service and customer retention may seem obvious, but its impact can be truly profound. Exceptional customer service doesn't just create satisfaction, it fosters unwavering loyalty — an invaluable asset in today's competitive business world.
Consumer survey data speaks for itself:
- According to a 2022 global survey, nearly 8 out of 10 global consumers deemed good customer service important to keeping them loyal.
- As for the US, around 83% of US consumers considered good customer service important or critically important in staying loyal to their favorite brands.
So, it's time to pivot and focus on what counts — retention through exceptional customer service.
Strategies for enhancing customer service
Now that we've established the importance of customer service in retaining customers, here are some effective strategies to take your customer service game to the next level.
Improve the overall customer experience
When it comes to customer retention, improving the overall customer experience is crucial. This means simplifying processes to make interactions with customers seamless and hassle-free.
For your ecommerce website, that means optimizing user interfaces, making them user-friendly, interactive, and efficient. Simply put, your customers should be able to navigate through your website seamlessly, find what they need, and make purchases without any difficulties. Luckily, an ecommerce platform like Ecwid by Lightspeed can help you create a smooth and efficient website with ease.
Other ways of improving the customer experience include:
- Creating a transparent return and refund policy. This will help your customers trust you and feel more confident about making a purchase.
- Offering various convenient shipping options to make the buying process more appealing to customers.
- Letting customers pay with their preferred payment method, including alternatives like buy now pay later or local payment options. This way, you can cater to a wider range of customers and make the purchasing process more convenient.
- Providing personalized customer service. This shows that you care about your customers and are willing to go above and beyond to meet their needs.
Retain through personalization
Customers want to feel acknowledged and understood for their distinct needs and preferences. This can be achieved by offering personalized support and providing targeted recommendations.
As a business owner, you can customize content and offers to cater to the specific requirements of every customer or segmented customer group. For example, sending personalized emails with product recommendations based on customers' previous purchases or browsing history can increase the chances of them making a purchase.
Let’s say you sell coffee beans. You can create a targeted email campaign for customers who have bought Colombian coffee and offer them a discount for buying a monthly subscription to this product. Not only will you retain the customer, but you may also increase their order value.
Personalizing interactions through email marketing or social media engagement makes your customers feel like they have a real connection with your brand. It doesn't have to be too complicated – even sending personalized birthday offers can make customers feel valued and appreciated.
Connect with customers
LiveChat is a complete customer service platform that delights your customers and fuels your sales.
Trusted by 36,000+ companies
Use cutting-edge technology
There are various customer service tools available to assist businesses in delivering an exceptional customer experience.
Multi-channel support is a must-have for businesses looking to stay ahead of the competition. Customers may reach out to you on your website, Instagram direct messages, WhatsApp, email, or phone, so prompt replies are expected from you on any of those platforms.
Another trend gaining traction in the customer service world is chatbots. These AI-powered bots can assist customers 24/7, handling inquiries and basic tasks such as order tracking, product information, or return requests. This improves response times and frees up your customer service team to handle more complex issues.
However, having a healthy balance between AI and human touch is important, so customers should be able to talk to a human agent when needed. It allows for better communication and understanding of customer needs.
Proactive chats are another feature that can enhance customer experience. With proactive chats, you can initiate a conversation with website visitors and offer assistance if they seem stuck or have been browsing for a while. This can increase the chances of conversion by helping customers make a purchase decision.
LiveChat makes it easy to provide proactive support via chats. It provides real-time data about website visitors, including pages visited, time spent, and interests. This data can be used to personalize interactions with visitors.
Plus, LiveChat lets you provide support across different platforms, be it email, social media, or messengers. It makes it easier for your support team to handle requests from one centralized location.
To learn more about LiveChat tools for multi-channel support, proactive chats, and more, listen to the podcast “Customer Service Tools Every Business Needs.”
Offering self-service options is another way to improve customer experience. Many customers prefer to find solutions independently, so providing a knowledge base, FAQ section, or interactive tutorials and guides can be helpful. This reduces their need to contact support and allows them to resolve problems quickly and efficiently.
Self-service options are convenient for customers and a great benefit for businesses since they're affordable. Read this article about self-service tools to learn how to use them efficiently and find the right balance with live support for optimal results.
Wrap up
With rising marketing costs, keeping your existing customers is vital for your business. The role of customer service in this situation is huge. Data shows that many consumers consider good customer service crucial for their brand loyalty.
As a business owner, shifting your focus toward customer service is important. It shouldn't be an afterthought but a critical strategic approach. It's not just about making your customers happy but about building loyalty and creating an experience that keeps them coming back to you instead of choosing the competition.
Some effective strategies to consider include enhancing the overall customer experience, personalizing your interactions with customers, and leveraging advanced technology to streamline customer support.
We understand navigating the trend of rising marketing costs is no easy task, so we invite you to read more on the subject. This Ecwid blog article offers practical tips, insights, and advice you can apply to your business, such as using the power of your brand, presenting your business on social media, and leveraging AI technology for routine tasks.
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