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  • Why Loyalty Program and Customer Service are Inseparable?

    Loyalty Programs

    Loyalty program inspires business ideas by letting them breeding space to flourish. In most conventional loyalty programs, customer service is considered an important tool, as it binds users with your campaigns effortlessly.

    Katherine Barchetti, very rightly quoted,

    “Make a customer, not a sale.”

    Overall theory of quality customer service in any loyalty program revolves around keeping your customers happy, and to make them feel special for staying with your brand.

    Here is a list of stats, originally 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.

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

    Businesses that have learnt 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. Here is our list of facts, which embellish the theory of “Customer Experience is Mightier than the Material Benefits”.

    Slow Response System:

    Businesses are based on different set of principles, at times, very peculiar ones. Therefore, many customers cultivate doubts or queries in their minds during transactions, which they feel, should to be resolved on priority. Such incident occurs frequently, and hence, 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, in case 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 businesses which don’t deliver great value customer service.

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

    Improper Customer Service Structure:

    This by far is a common cry among many customers that they are transferred from one customer service agent to another for effective resolution of their problems. Such experience can add woes to your customer retention rate. Remember, customers aren’t interested to framework of your organization; all they want is prompt and effective solution to their problems.

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

    Customer’s Willingness to Pay More:

    Most customers these days are willing to spend more dollars if they experience better customer service from their companies. The Defaqto Research brings out some important stats on consumer behavior based of their experience with customer service.

    • 55 percent 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 simply leave and never come back.

    Customer Requiring Customer Support:

    Any business, generally have two types of customers – new and existing ones. In case of online purchases, it is noticed that many customers need online support to finish their transaction.

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

    Customer Recommendation for Brand:

    There is certain trend among customers when it comes to recommending a brand. High percentage of customers recommends brands on the basis of online support they experience.

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

    • 33 percent 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 which offers slow but effective solution.
    • Even more surprisingly, 19 percent of respondents claim to recommend a brand which offers no response.

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

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

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