Why Does a Good CX Strategy Lead to a Good Customer Retention Rate?

Keeping your customers satisfied is one of the few priorities that companies have. Customers drive and expert companies to do more to continuously satisfy their customer experience. Companies need to continuously take value in what customers want, need, and how they can grow positively by implementing their product or service into their everyday lives. It is an important task to gain customers and build and maintain relationships with them to close deals, but it is not easy to gain customer loyalty. The way to keep customers from drowning into your company is to establish a strong relationship. This relationship could be just a business relationship, and perhaps down the line, a personal or longtime friendship. The importance of establishing a relationship is to build trust and loyalty between the customer and company. Again – as a company, you need to understand what the customer wants, needs, and can gain from doing business with the company. 

Receiving and implementing customer feedback is a major key to having a successful company. Customers are the first-hand audience who experience products from the companies with which they choose to engage with – mainly for the perceived value of said products, at least upfront. It is key to receive customer feedback from customers who have had time to use your product and service to have a viable opinion and user experience.  Sometimes, as we all have experienced, customer feedback is not always positive feedback, but any feedback from a customer is good feedback. It is always important to know what the customer is thinking and to have different channels for customers to provide feedback as well. Their feedback can allow the company to grow and think of different ways to fix any concerns that companies have or how to expand on a campaign or initiative that’s doing well. Feedback is beneficial for companies to get information on how to improve retention strategies.

Think about it this way – the first time a company closes a deal with a new or returning customer the customer is excited to have a new product to improve their business for their customers. The customer expects the company to provide the same quality of product every time they make a purchase from them. Advertising your products creatively and strategically to speak the language of your ideal customer can make or break the retention rate of your customers. Customers enjoy when companies make a change in their market, particularly if the change was made due to their primary customer base’s feedback and research. Change shows customers that companies are listening to their feedback and making changes to their approach on products. Making your customers feel comfortable is a key component to obtaining and maintaining your customer retention rate as well. The more comfortable and confident a customer is to the company and its products and/or services, the more loyal they are and will continue to be to the company. 

Here’s the main takeaway here – the main goal of a company is to always keep your customers satisfied.  The management of customer value is paramount. Customers can provide feedback to the company and if they enjoy the product or service then customers will share the company with others. (Word-of-mouth marketing still exists and works quite well. Peers trust peers.) Customer retention rates can simply be analyzed by getting feedback, staying on top of products or services, keeping customers satisfied, and changing up marketing strategies for new and existing customers.