Retailers Focus on Customer Experience and Lose It At the Same Time
Charts like the one shown below just stun me. This is a chart from a report done by Econsultancy titled “The Retailer’s Imperative”. The idea of the study is to show how retailers view their understanding of the customer experience. It is extremely interesting that retailers
Retailers understanding of customer experience Figure 1 Found on Econsultancy.com
have a very high opinion of their returning customers’ experience in their stores and offices. That is wonderful, as far as it goes, because it shows that these business people care about their relationships with their customers and want their customers to enjoy purchasing process either online or brick-and-mortar. This is perplexing, however, because of other studies showing that business people, by and large, basically ignore marketing to the people that they know and have purchased from them in the past. Marketing Sherpa reports that 68% of organizations marketing business-to-business have not identified a funnel for their contacts. Targeting the customer experience, however, at the expense of a marketing system is pure folly. This puts your business on a Bridge to Nowhere. While this study is business-to-business, failure to market to people that you know and have identified themselves on a consistent basis in an efficient and effective manner is a problem among businesses across the spectrum. The purpose of the funnel is to educate, entertain, and engage the people and customers you already know until they are ready to buy—and then do it all over again. It is to nurture them until they purchase.
What happens when you fail to nurture your customers and clients who had that great customer experience and you then let them slip through your fingers?
Other research reports that when people who know, like and trust you and your business are nurtured through a funnel:
- They make 47% larger purchases according to the Annuitas Group
- 50% of them more ready to purchase than if they were not nurtured and the cost of marketing to them is 33% less than marketing to people who do not know you according to Forrester Research
Results like those are not achieved in a helter-skelter fashion with occasional emails. Results like those are accomplished when people who have identified themselves to you are professionally followed, tracked, and scored in their journey with multiple touches throughout the funnel. Then, as they grow to know, like and trust you, you eventually become the only logical choice when they are ready to make their purchase. Making the customer experience the highest quality experience possible is a great and noble objective. However, shouldn’t you, as a business person, want the highest quality of customer, client, or patient who will make larger purchases more often while increasing your ROI exponentially?
A great customer experience, BY ITSELF, does not maximize the value of that customer to your business.
Master Back End Marketer
24/7 Hi Octane Marketing
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