Why Loyalty Program and Customer Service are Inseparable?
Rohit Singh VP of Customer Engagement Schedule Free Consultation
  • The loyalty program inspires business ideas by letting them breeding space to flourish. In most conventional loyalty programs, a customer service is an important tool, as it binds users with your campaigns effortlessly.

    Katherine Barchetti, very rightly quoted,

    “Make a customer, not a sale.”

    The overall theory of quality customer service in any loyalty program revolves around your customers to keep them happy and make them feel outstanding for staying with your brand.

    Here is a list of stats, initially featured in “18 Interesting Stats to Get You Rethinking Your Customer Service Process”, published on Salesforce blog, that will help marketers to understand why customer service is still so powerful a tool in loyalty programs.

    Vital Stats about Customer Service and Why It’s Important in Loyalty Program

    Businesses that have learned the bitter lessons of maintaining a loyalty program will appreciate the fact – customer experience is far more crucial than attractive rewards, discounts, cash backs, or other such lucrative takeaway options. 

    Our list of points that embellish the theory of “Customer Experience is Mightier than the Material Benefits.”

    Slow Response System: 

    Businesses are based on different sets of principles, at times, very peculiar ones. Therefore, many customers cultivate doubts or queries in their minds during transactions, which they feel, should be resolved on priority. Such an incident occurs frequently, and hence, a slow response system isn’t helping you in any way.

    According to the reports, 45 percent of US consumers would choose to turn out of an online transaction if their concerns are not addressed quickly and efficiently.

    Poor Customer Service: 

    Even though businesses realize the importance of customer service, but they fail miserably at the time of deliverance. Reportedly, customers don’t extend their association with companies which don’t deliver excellent value customer service.

    RightNow’s Customer Experience Impact Report states that 89 percent of consumers stop doing business with companies after having a poor customer service experience.

    Improper Customer Service Structure: 

    Many customers are passes through from one customer service agent to another for sufficient resolution of their problems. Such experience can add woes to your customer retention rate. Remember, customers take little interest in your business operations; all they want is a prompt and effective solution to their problems.

    2012 Global Customer Service Barometer – Findings in the United States revealed that 26 percent of customers agreed that they are being transferred from one agent to another without resolving their problems.

    Customer’s Willingness to Pay More: 

    These days, most customers are willing to spend more dollars if they experience better customer service from their companies. Defaqto Research brings out some essential stats on consumer behavior based on their experience with customer service.

    • Fifty-five percent of customers agreed to expend more money if they experience better customer service.
    • On the contrary, 96 percent of unsatisfied customers never complain about poor customer service. However, 91 percent out of them leave and never come back.

    Customer Requiring Customer Support: 

    Any business generally has two types of customers – new and existing ones. In the case of online purchases, many customers need online support to finish their transaction.

    • According to eConsultancy, 83 percent of online shoppers agreed to seek customer support to make purchases. In the absence of it, they either search for other competitors or forsake the transaction.
    • Customer’s preference for online support mode says 61 percent opt for phone calls, 60 percent choose to email, 57 percent are interested in initiating a live chat, 51 percent exploring the knowledge base, and 34 percent go with “Click-to-call” support automation.

    Customer Recommendation for Brand:

    There is a specific trend among customers when it comes to recommending a brand. A high percentage of customers suggests brands based on the online support they experience.

    According to a survey of social media users conducted by Nielsen-McKinsey:

    • Thirty-three percent of respondents accepted they would recommend a brand even if they experience prompt yet ineffective response.
    • Surprisingly, 17 percent of respondents said they would recommend a brand that offers a slow but effective solution.
    • Even more surprisingly, 19 percent of respondents claim to recommend a brand that offers no response.

    These above numbers, figures, stats, etc., are collected or cross-checked from reliable marketing research firms, online informational resources, blogs, etc. After going through these facts, you can understand the significance of customer service for companies and their loyalty programs.

    At NextBee, we would love to help you develop a quality loyalty program with full customer service and feels pride in watching your growth.

    Suggested Readings for Loyalty Programs: 

    Best Loyalty Program Practices for eCommerce Business

    Top 8 Best Practices for any meaningful Loyalty Program

    Looking to Increase Sales? Choose a Customized Loyalty Program!

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