How do customers choose a brand or company?

When we think of what influences a consumer on which brand to pick we usually think of advertising, right? Well, while advertising does have some impact in the customer decision making process, what matters more is the customer experience provided. Nowadays, in order for a company to be able to stay relevant in the field that it is activating, it has to be able to provide a seamless customer experience.

Customer experience makes or breaks a business

At this moment, the customers have the power to really punish a company for not providing the products or services on par with the competition. Given the fierce rivarly between businesses and the wide range of competitors, a customer has the power to change companies at will, without any consequences. What this means is that, companies have to increasingly keep up with the rising expectations of the consumer. According to the studies, half of the customers are prone to leave a good or bad review regarding the satisfaction of the services or products provided by a company. This trend applies especially to the younger generations.

The importance of customer retention

So, why is it important to keep a customer? According to studies, it is five times more expensive to acquire a new client rather than to keep investing in an already existing customer. On top of that, the probability of selling to an already existing customer is significantly higher than to sell to a newly attracted lead. Also, already existing clients are more likely to try new products while also spending in general more than a new one.

The biggest reason why customers are leaving is usually the fact that they have received an unsatisfactory service or product from the company. Nowadays, consumers are quick to penalize a company for an unsatisfactory experience. On top of that they are well aware that their influence in the marketplace is stronger than ever, are willing to use that power to influence your companies reputation for both good or ill. The leading causes for customers leaving is that the company or brand is not taking into consideration the customer needs. On top of that, providing a poor customer support and not learning from the feedback also adds up to the customers leaving. Naturally, not every customer experience can be a positive one, at some point there are bound to be some mistakes, maybe a parcel is delivered on the wrong address or the product delivered is in poor condition. Now, when those situations arise, the customer is taking into account how the company is responding to those situations. If the client has the feeling that he is putting more effort in fixing the problem than the company, then he is way more inclined to spread the word about his bad experience to others, while also being more prone towards switching brands altogether.

The best way to prevent a customer from leaving is to provide a really good customer experience. To do that, it is good to take into consideration that companies have to provide a good customer experience across every step and stage of the customer life cycle. Moreover, customers expect ease and convenience every step on the way regardless of how, when or why they are in contact with your company. Also, customers consider that speed is paramount. Basically, they expect to get what they need without delay. When filing a complaint, the consumers also want for it to be immediately addressed, same goes for when they post a review. One way of keeping customers is to make a loyalty program rewarding them with something of value for their loyalty. This way, the customer is going to feel that he is appreciated and he is going to be more likely to stick around and be a good consumer to you.

Key insights to keep in mind: 

• Provide a seamless customer experience
• Take into consideration the customer needs
• Personalize the experience based on every consumer
• Take negative feedback into consideration
• Provide fast service and customer support
• Reward loyalty 

If you want to be competitive on the market, then be sure to deliver an unforgettable customer experience to your consumer. Nowadays, customers are sure to punish or reward a company or brand according to the experience that was provided, so, be sure to be on the good side of the consumer to be able to reap most of the benefits.