Positive Customer Experience Drives Greater Customer Loyalty
Keep your customers for longer — and enjoy greater share of wallet, decreased likelihood to buy from your competition and increased willingness to tell others great things about you.
Across the board, research shows (and common sense confirms) that delivering a better customer experience has a proven correlation to improved customer loyalty. And since loyal customers stay longer, spend more and drive new customers to you.
Improving customer experience leads to greater customer loyalty in three key areas:
- Increased likelihood to remain a customer: Another way of saying your customers will remain more loyal, improving customer experience will increase retention, with your best customers remaining customers for longer.
- Greater share of customer wallet: An improved customer experience leads to greater share of customer wallet by increasing willingness to repurchase from you (thereby buying more often) and also increasing the average amounts of each purchase.
- Increased likelihood to recommend: The correlation between good customer experience and consumers’ likelihood to recommend (positive Word-of-Mouth, or “WOM”) with 60% of consumers saying experience is the top reason they’re willing to recommend a company — and it’s the number one influence on purchasing decisions.
Yes, the correlation between experience and each of these three loyalty metrics will be different from one company to another. The best way to see how experience affects your loyalty scores are to measure both – and learn where (or if) your customer expectations are different than the experience your customers believe that they get.