You’ve probably heard figures like this before:
- 80% of companies’ future revenue will come from only 20% of their existing customers.
- A 5% increase in customer retention can increase a company’s profitability by 75%
- Attracting new customers costs up to 5x more than keeping your existing customer. (And in these times this figure is likely to rise.)
And while they’ve always been true. Your existing customers have probably never been more important to your business than they are right now. The decisions that are being made today might affect your business bottom line for a long time to come.
A lot of things are uncertain right now and business leaders all over the world are holding their breath to see what happens next. The truth is, nobody has the answer. However, everyone is looking for perspectives on what to do next. When in doubt, the easiest solution is to fall back on the strategy “let’s wait and see”. This is a very dangerous strategy and will only lead to lost opportunities. Once your customers are gone, there is no guarantee of getting them back. The brands who maintain a good relationship with customers are much more likely to come out stronger from this.
So what can you do to stop this from happening?
Make an assessment if the timing is right to reach out. You might wonder, in times when people worry about health and economics, do customers really want brands to reach out? The short answer is yes, they do want you to reach out. In fact, 77 percent of respondents expect their brands to be helpful in what has become “the new everyday life.” Only 8 percent feel they should stop advertising, according to a study by Kantar that assessed global consumer sentiment around the coronavirus pandemic.
Wiraya helps companies to activate customers at critical moments in the customer journey. We specialise in moments where 1:1 communication is required to get the customer to act and at the same time automation is needed to scale up the customer dialogue. As always, we are monitoring all Wiraya communication programs closely to pick up on any deviations. Our own data shows no signs of change in customer activation. (Data is mainly from the European market and verticals; Automotive, Utilities, Gaming, Telco, Finance and Insurance). This only strengthens our belief that consumers act on relevant communication, even in times when they are being bombarded with information.
What does your data tell you?
Review your customer journeys. Are they still relevant? While consumer spending will slow in a recession, it won’t stop completely. It’s important to continue telling your story in a credible and genuine way. Many moments in the customer journey are still happening, as usual, so the worst thing you can do is to change what’s already working. Put your time and effort elsewhere!
Focus on the critical moments! What moments make or break your customer journeys? By focussing on the right critical moments in your customer journeys you don’t only provide value for your customers but also on your bottom line. Think about what does it cost you if your brand fails on delivering relevant communication in those specific moments? Worst case it will cost you your customer. As always it’s about being part of your customers’ life, both in terms of your offerings and helping them throughout critical moments in their customer journeys.